Teri Felix This is Me

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1. 1. Today in Investor’s Business Daily stock analysis and business news

   www.investors.com/editorial/te - [Cached]

   Published on: 10/18/2001   Last Visited: 10/18/2001

   Transactions are down , but online visitors are not , said Teri Felix , Schwab's electronic brokerage vice president.
   
   Spent Heavily On Tech
   
   Executives won't say how much this year's Web upgrades cost. They will say that in 2000 the firm spent $409 million on tech work , or 58% of $705 million in capital expenditures.
   
   Analysts say Schwab has done a good job with its upgrades , especially its search tool.
   ...
   Felix admits that the Web will never replace human input at Schwab. Most clients , she says , use a combination of in-person and online services. Eighty percent of trading happens online. But 70% of accounts are opened in person.
   
   When there's a lot of volatility , people want to know who's on the other side of the Web , said Felix.
   
   Analyst Gives Top Rating
   
   ...
   Felix says it saves the firm $125 , 000 per month in customer service time.
   
   That's because it lets clients find online answers to detailed questions. They are not limited to searching with just a word or two.
   
   For example , ask , How do the quarterly earnings of IBM , Microsoft and Sun compare?. You get a single screen with each company's data.
   
   ...
   Felix says she considered 30 vendors before selecting Cambridge , Mass.-based iPhrase Technologies Inc.. She said she chose the 2-year-old firm because using its product feels like you're talking to a broker..
   
   ...
   Felix , for her part , said the customer response to the feature so far has been overwhelmingly positive..
   
   Adds Retirement Planner
   
   In a trial use , the Schwab search worked well and fast. The only inconvenience was having to hit the back button to restart a search after looking at a company profile. For more general questions , the search function stays on-screen and you don't have to go back.
   
   ...
   Last week Schwab also debuted an online retirement planner that was 16 months in the making , says Felix.
   
   It takes what's in your portfolio and looks at the volatility of your individual securities , she said. To forecast future returns , the planner compares stock data all the way back to 1926. From that , it maps out what your chances are of meeting your retirement goals..
   
   It's too early to assess how customers like it.
   ...
   Felix says more site upgrades are in the works , including stock alerts e-mailed to clients. She points to Schwab research that illustrates what is the evolving role of the Web in investing.
   
   At the beginning of 2000 , 27% of Schwab's clients were self-directed , going online and choosing hot stocks on their own. By the end of the year that number dropped to 18%. Now 48% ask for personal advice compared with 38% last year.
   
   With the stock market performing so poorly , Schwab and its rivals need to take measures to perk up their business. On Tuesday , Schwab reported third-quarter operating earnings of 6 cents a share , down from 12 cents in the year-earlier period.