UBS has obtained a national banking license in the United States, a significant step in its strategy to expand its wealth management business in the country. This approval from the Office of the Comptroller of the Currency allows UBS Bank USA to convert into a nationally chartered bank, enabling it to offer a comprehensive range of banking services, including checking accounts, savings accounts, and mortgages. This move positions UBS to directly compete with leading U.S. banks like Morgan Stanley by providing everyday banking options to its affluent clientele.
Rob Karofsky, President of UBS Americas, emphasized that this strengthens their momentum in the US and reinforces their ambition to be a premier global wealth manager. UBS views the US as the most critical growth market for its wealth management division, with over 1,000 new millionaires reportedly being created daily in 2024. The introduction of these new banking products is anticipated towards the end of 2027.
The push for US expansion comes as UBS faces tougher banking regulations in Switzerland, particularly after its acquisition of Credit Suisse in 2023. This increased regulatory pressure at home has accelerated UBS's drive to seek growth opportunities abroad, with a stronger foothold in the US expected to help satisfy investor demands for higher returns. Despite this ambition, UBS is currently less profitable than its main US competitors and has faced challenges in revamping its US business, including the loss of billions of dollars in client assets and nearly 200 financial advisors, according to industry sources. The new charter, however, is a cornerstone of CEO Sergio Ermotti's and Karofsky's strategy to boost profitability.
