Schwab: Consumers look for convenience

Charles Schwab says the new Renobased bank that bears his name is another step toward reducing consumers' hassles with their personal finances.

What's the next step for the company in making financial matters more convenient? Probably providing greater advice on management of personal finances, Schwab said last week as he visited Reno for the grand opening of the new bank.

The bank, he said, is the result of customer requests for Schwab-branded products such as certificates of deposit that can be offered only by a commercial bank.

Those requests by customers, he said, reflect a growing desire for simplification of financial matters.

"People want to have more convenience," he said.

"People want more time with family and less with financial stuff." The bank's initial focus has been the residential mortgage business, and its staff was prepared to catch another wave of refinancing as the Federal Reserve cut rates last week.

With time, Schwab said, Charles Schwab Bank will offer a full array of traditional retail banking products.

But it's unlikely that the bank will launch a wide branch network to serve its customers across the country.

Instead, the company believes the Reno headquarters operation will serve as the hub of something that looks quite a bit like an Internet bank.

Customers will use the Web and their telephone to conduct most of their banking.

The success of that national reach, Schwab said, will depend in large measure on the Reno bank's ability to keep its costs low so that it can be cost-competitive on mortgages and other banking products.

At the same time, however, the company has pledged $20 million over the next two years for community reinvestment and loans to low- and moderateincome families in northern Nevada.

During Schwab's visit to the bank, he announced the company has committed $1.3 million in mortgage funding to support the Friendship Lane revitalization project.

That project overseen by the Housing Authority of the City of Reno will include construction of nine new homes and other improvements to the downtown Reno neighborhood.

The housing authority earlier purchased eight duplex units in the neighborhood, found new homes for the residents and cleared the old units.

The commitment from Charles Schwab Bank agreed to provide up to 100 percent financing for the buyers of the new homes, with no down payments in many cases.

Charles Schwab Bank employs 25 in the headquarters operation at 5190 Neil Road.

Nationwide, the bank employs about 150 people in banking and support positions.