UBS has obtained a national banking license in the United States, a significant step in reinforcing its wealth management business in the country. This approval from the Office of the Comptroller of the Currency allows UBS to expand its service offerings, including checking accounts, savings accounts, and mortgages, which are anticipated to be introduced to clients by late 2027. Rob Karofsky, President of UBS Americas, emphasized that this license strengthens their momentum in the U.S. and supports their ambition to become a premier global wealth manager. The US is identified as the most vital growth market for UBS's core wealth management business, with over 1,000 new millionaires reportedly emerging daily in 2024.
This strategic move by UBS to bolster its U.S. operations comes amidst tighter banking regulations in Switzerland, particularly after the acquisition of Credit Suisse in 2023. The Swiss government is expected to propose stricter capital rules for banks, which UBS has criticized as potentially excessive and disadvantageous. The license is also intended to help the bank address profitability concerns, as it currently lags behind leading U.S. banks like Morgan Stanley. UBS aims to go "head-to-head" with offering everyday banking services, expanding its client base and services.
However, UBS faces challenges in its U.S. business, including the loss of billions of dollars in client assets and nearly 200 financial advisers in recent years. To counter this, UBS recently revamped its compensation model for financial advisers to retain and attract staff, operating with approximately 5,800 financial advisers. The need to strengthen the U.S. business has gained urgency since the Credit Suisse takeover, and a stronger foothold in the U.S. is critical for UBS to meet investor demands for higher returns and improve its overall profitability.
