Charles Schwab (Schwab) prepares to launch a digital onboarding tool next month. The onboarding tool has been inspired by increased technology adoption of customers and advisors and greater internal attention to the firm's software development. 

Schwab has teased a digital account opening and onboarding for years. By the end of July, advisors can use Schwab's Digital Account Onboarding (DAO) for certain Schwab One, Individual Retirement Accounts (IRA), and trust accounts. Advisors can use DAO to onboard clients using individual, joint tenant, tenants in common, community property, and custodial accounts.

Schwab has eliminated the need for a notary for the irrevocable living trust, replacing it with a proxy that includes setting up client credentials for the account. According to Andrew Salesky, Schwab's head of digital solutions, the new capabilities are the "second wave" of capabilities planned for Schwab. The firm already is planning a third development timeline where advisors can enable and fund multiple accounts in a single household using a single "digital envelope."

Schwab still is working to overhaul its manual back-end systems to match the digital front-end workflow. According to Alison Dooher, VP of the advisor digital onboarding division, the firm already has developed a digital front end and a digital payload into their operational services. But not all automation is complete within Schwab.  The development will continue as the firm integrates the technology and features of its TD Ameritrade acquisition into 2023. Schwab's digital onboarding is a "critical component" to meeting post-pandemic advisor and customer expectations. 

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