The news: UBS wants an expanded US banking license to advance its global growth strategy, per Bloomberg.
The strategy: UBS is a global wealth management leader but lags behind domestic competitors in the US. It is registered as a broker-dealer and investment adviser and therefore restricted to specific wealth management and investment services provided through a network of over 6,000 financial advisers, per the bank’s website. Bloomberg describes these advisers as “not directly bound to the bank.”
It is therefore considering applying to the Office of the Comptroller of the Currency for an expanded license. This would let the bank accept deposits and make loans directly to US clients.
What this means for US banks: Virtually every major US bank is strategizing to earn the trust and loyalty of mass affluent clients—those with $100,000 to $1 million in liquid assets. For example:
Our take: UBS hasn’t yet applied for the expanded license. But its strategy underscores the importance of a competitive approach to evolving market dynamics. To retain and attract mass affluent clients, US banks should increase their focus on delivering personalized wealth management experiences and integrating technology with in-person advisory services.
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