UBS is increasing its focus on onshore banking in the Taiwan market amid ongoing uncertainty in cross-straits relations.
Within the Taiwan client segment, UBS will look to increase focus on the onshore banking business, according to a «Bloomberg» report citing senior executive Henry Su.
According to Su, UBS is targeting double-digit revenue growth in Taiwan in 2023 with plans to expand its staff size from 450 to 500 in the next five years. The bank is also planning to offer alternative investments to the onshore market.
«It’s important for us to get out of our comfort zone. We are going to go even more local,» said Taiwan head of wealth management Su.
Three Areas
Su notes that there are currently three areas that Taiwan clients are mainly focused on: asset movement to Switzerland, Hong Kong or back to Taiwan; intergenerational wealth transfers and supply chain issues.
«In the past, it’s much more about the S&P performance after one quarter,» he recalled.
Cross-Straits Relations
Concurrently, cross-straits tensions continue to rise with China’s People’s Liberation Army completing three days of military drills around Taiwan in April after President Tsai Ing-wen visited the US.
«Some clients reacted strongly and transferred their funds elsewhere, while some just asked ‘what do you think and how should they plan for it?’» said Su on client reaction to the military drills.
