By Oliver Hirt and Dave Graham
ZURICH, March 20 (Reuters) – UBS has secured a national banking licence in the United States, the Swiss bank said on Friday, in a boost for its efforts to expand wealth management in the world’s biggest economy.
UBS said its application for a national bank charter had been approved by the Office of the Comptroller of the Currency, a positive step for the bank as it attempts to navigate tougher banking regulations in Switzerland.
“This will strengthen our momentum in the U.S. and it reinforces our ambition to lead as a premier global wealth manager,” Rob Karofsky, President of UBS Americas, said in a video statement broadcast on LinkedIn.
UBS had applied for approval to convert its U.S. bank, UBS Bank USA, to a nationally chartered bank, which will allow it to match the full range of services offered by U.S. lenders, including checking accounts, savings accounts and mortgages.
Brian Carlin, UBS’s head of global wealth management U.S., said the charter would enable the bank to expand its client base and services, though it would take time.
“We’re now going to go head-to-head with offering everyday banking,” he said.
Banking products such as checking and savings accounts are expected to be introduced for clients towards the end of 2027, a person familiar with the matter said.
US IS MOST IMPORTANT WEALTH MARKET
UBS sees the U.S., where more than 1,000 people became millionaires every day in 2024, as the most important growth market in its core wealth management business.
But UBS is less profitable than leading U.S. banks, such as Morgan Stanley. UBS is also facing obstacles in revamping the U.S. business after losing billions of dollars in client assets and nearly 200 financial advisers, according to analysts and industry sources, Reuters reported this week.
A firmer foothold in the United States could help UBS grow its business as it seeks to satisfy investor demands for bigger returns.
The need to bolster the U.S. business has taken on extra urgency since UBS bought Credit Suisse after its rival collapsed in 2023, prompting the Swiss government to embark on plans to make the banking sector less risky with stricter regulations.
The government is expected to present a draft law with its proposed regulations during the coming month.
UBS would face higher capital requirements under the proposed measures. The bank has criticised them as excessive and has said they risk putting UBS at a disadvantage.
(Reporting by Oliver Hirt and Dave Graham; Additional reporting by Tommy Reggiori Wilkes; Editing by Ludwig Burger and Jane Merriman)
Comments