Innovation: Showcasing Efficiency and Tightening Security

Companies in the 21st century are constantly looking for way to move their services to the next level of the digital age. Accessibility, convenience, and speed are major factors that industry leaders always look to improve upon, and Charles Schwab & Co., Inc. is no different.

Over the past few weeks, Schwab has put on several presentations in cities across the nation to showcase their technological advancements in a series they call Schwab Solutions. At DWM, we were lucky enough to attend one of these presentations and learned of a lot of exciting new features and opportunities that we believe can assist our clients. Here are some of the highlights:

  • E-Signature->For existing clients looking to open a new account at Schwab, we can utilize a new process called e-signature to send the documents over to your Schwab portal. Simply let DWM know your intention to open a new account, and we can work up the forms to do so. Once the forms are ready, we can send a request for your e-signature, which will send a notification to your Schwab Alliance account. This will assist in opening your account faster, more securely, and with no paper waste!
  • E-Approval->For check and journal requests (moving money from one account to another at Schwab), we can follow a very similar process to the e-signature process, with e-approval! Once again this reduces processing time, paper waste, and improves document accuracy. Schwab is also working to bring this feature to MoneyLink requests, so stay tuned for that improvement!
  • Mobile Deposit->The Schwab app also allows investors to scan/take a picture of the front and back of a check and upload them for deposit, usually within the same day!
  • The Schwab platform itself is receiving an overhaul in the coming months, which should provide clients with a much sleeker, more intuitive experience. A major difference to come will be a personal value chart, which will display a simplified net worth statistic based on the accounts at Schwab, as well as the ability to add in accounts outside of Schwab (think 401ks)!
  • In addition to the aesthetical changes, the Schwab portal now has much more client interactivity than before, which will allow investors to update various information on their accounts all from within the website, no paperwork involved. These various services include:
    • Updating accounts in case of address change
    • Beneficiary updates on IRAs
    • Tax withholding percentages for IRAs

As with any technological advancement, new security challenges often emerge, and Schwab, as well as DWM, are your first line of defense against these threats. For Schwab’s part, they have bumped up security in some major ways:

  • Whenever a new device is used to access a Schwab portal, a text or e-mail is sent (depending on how the security of the specific account is set-up), to ensure that fraudsters are not trying to access your account information electronically.
  • In addition, Schwab offers a security feature called two-factor authentication, which allows for an app on your phone to provide a six-digit code to follow your Schwab Alliance password, further ensuring that only the account holder can access their sensitive information.
  • Finally, one further security measure clients can choose to utilize is called Schwab Voice ID. With this service, a client calls in and answers some basic questions to the Schwab Alliance team, through which their Voice Biometrics system analyzes the quality of your voice. Then, if any suspicious activity occurs in your accounts, Schwab will call and verify the activity with you, using the Biometrics system to ensure that the voice on that end of the line is actually the account holder.

As far as DWM goes, our stance and determination in protecting our clients’ information remains resolute. We are completely committed to client security, and will continue to both provide education to keep our clients informed of rising threats, as well as keeping ourselves up-to-date about viral issues and staying abreast of any suspicious account behavior. For example, one of the most dangerous areas regarding theft and fraud currently going on are real estate scams. Hijackers will find a way into legitmate e-mail threads regarding wire information for a client buying property, and provide phony wire information. As a result, verbal verification is the new normal. As part of our safeguarding protocol, DWM will be calling the client and/or the title company to verify these wire instructions to ensure that everything goes as planned.

At DWM, we are passionate about protecting our clients and helping them shape their financial future, worry-free. This is seen throughout our wealth management process, from investing to account management, to financial planning. We aim to help clients notice and avoid any landmines that might be hiding in their long-term financial plan. Providing safer, more efficient ways of accessing and updating their accounts, while also actively monitoring for suspicious activity and ensuring accuracy is an effective method of doing so.

Please feel free to stay updated on Schwab’s technological advancements through their “Client Learning Center” page found here:

http://content.schwab.com/learningcenter/

Please also feel free to contact DWM with any questions or concerns regarding either advancements or safety.

At DWM, we are passionate about protecting our clients and helping them shape their financial future, worry-free. This is seen throughout our wealth management process, from investing to account management, to financial planning. We aim to help clients notice and avoid any landmines that might be hiding in their long-term financial plan. Providing safer, more efficient ways of accessing and updating their accounts, while also actively monitoring for suspicious activity and ensuring accuracy is an effective method of doing so.

Signatures are Becoming Extinct

Later this month, Visa, Mastercard, Amex, Target will no longer require signatures to complete credit card transactions. Walmart and other credit card companies and retailers will soon follow. It’s a new ball game now that cards are embedded with computer chips. Signatures are becoming extinct. Personal checks are on their way out. Could genuine handwritten notes be next?

Signatures have been part of our human identity and creativity for thousands of years, dating back to the Sumerians and Egyptians. The English Parliament elevated the status of signatures in 1677 by enacting the State of Frauds in 1677 Act which required all contracts to be signed. By 1776, when John Hancock signed the Declaration of Independence, the signature was in its full glory for binding a contract and exhibiting the signer’s creativity. Fast forward to 2000 when President Bill Clinton signed the E-Sign Act paving the way for eSignature technologies to use digital signatures to sign contracts.

Credit card companies, which cover the costs of credit card fraud, started adding microchips more than a decade ago to reduce fraud. Prior to chips, most retailers required signatures on all purchases and could be held liable (for a fraud) if they failed to notice that the signature on the receipt did not match the one of the back of customer’s card.

Then, with online shopping, card networks started the transition to eliminate signatures. Typically, purchases less than $25 or $50 did not require signatures. However, some card issuers continued to require signatures, so many merchants just kept getting signatures on all transactions. Now, with chip technology leading the way, the card networks are indicating that signatures are obsolete. This will speed up the checkout line, which will make everyone happy.

Some merchants may continue to ask for signatures. Some believe customers have the signature built into their muscle memory of the purchasing process. Further, they are concerned that eliminating signatures might impact workers’ tips. Lastly, some like to keep the signature as evidence that the customer received the services or goods when fighting fraud claims.

Even so, signatures are becoming extinct and will be likely be reserved for special situations, like a house purchase, a marriage license or birth certificate. Even celebrity autographs are now being replaced by “selfies.”

Which leads us to genuine handwritten notes. We know how important a handwritten “Thank you” or sympathy card is. Like homemade bread and hand-knitted socks, handwritten notes make a huge impact. Unfortunately, all of us are pressed for time. Not to worry, you can now fake a handwritten note using online services:

Handiemail. You type a letter, send it to Handiemail with the address of the recipient and $10. Within a couple of days, your letter, handwritten on specialty paper and hand-addressed in a premium envelope with a first-class stamp is delivered.
Inkly. With Inkly, you select a card design, type your message, snap it with your phone, upload to the app and Inkly sends it out for you.
Bond. Starting at $3, you can send an elegant handwritten note with a choice of five handwriting styles to be delivered to the recipient in a suitably classy envelope. Also, for $500 you can visit a Bond HQ where staff will help you improve your own handwriting.
Handwrytten. This is another app which offers a range of classy cards, which the company considers “hipster-friendly, limited-print letterpress designs.” Each letter created has “truly organic effect.”
Yes, keyboards seem to be replacing pens. A recent study showed that one of three respondents had not written anything by hand in the last six months. On average, they had not put pen to paper in the last 41 days. With information technology, handwritten copy is fast disappearing.

However, there is some pushback. Pens and keyboards apparently bring into play very different cognitive skills. “Handwriting is a complex task which requires directing the movement of the pen by thought,” according to Edouard Gentaz, professor development psychology at the University of Geneva. He continues, “Children take several years to master this precise motor exercise.” On the other hand, operating a keyboard is a simple task; easy for children to learn.

In 2000, work in the neurosciences indicated that mastering cursive writing was a key step in overall cognitive development. Studies have also shown that note-taking with a pen, rather than a laptop, gives students a better grasp of the subject.

IT continues to change our world. Yet, Professor Gentaz believes that handwriting will persist, “Touchscreens and styluses are taking us back to handwriting. Our love affair with keyboards may not last.” Time will tell.