The Swiss bank's CEO plans a wider rollout of a digital wealth manager for less-wealthy clients.
Zurich-based UBS is about to become less exclusive: the wealth manager will target mass affluent customers, generally viewed as those with less than $1 million in bankable assets, in a new digitally-powered push beginning in the U.S. and spreading globally, CEO Ralph Hamers told the «Financial Times» (behind paywall) on Thursday.
«It is clear that we should cater for the entrepreneurs, but we should also cater for that segment of the market that may not be completely digitally engaged, but also doesn’t want to have 100 percent client-advisor coverage, but something in the middle,» he told the pink paper. «That’s exactly the sweet spot that we want to go after.»
Sliding Wealth Scale
The comments represent the clearest picture yet of what Hamers, in the job for 13 months, will do in terms of kickstarting UBS' flagship wealth arm. It has until now focused on the ultra-wealthy segment or those with more than $50 million in money. The bank has pledged a strategic update for February 1.
With its new push, the Swiss bank will be going after clients which are sought after by the likes of Goldman Sachs, J.P. Morgan and Bank of America. UBS already counts two million U.S. clients in the affluent category from its employee stock and retirement plan platform.
Triumvirate Of Bankers
Since buying U.S. broker Paine Webber in 2000, it has continuously attempted to target higher segments of wealth than the traditional brokerage client. The U.S. unit now manages the wealth manager's biggest chunk of assets. UBS has no retail clientele outside of Switzerland.
Hamers said the digital service, which was disclosed during third-quarter results, would expand globally following the U.S. rollout. He is part of a triumvirate poised to take over at UBS from April, under Colm Kelleher and Lukas Gaehwiler, designated Chairman and deputy, respectively, in April.
