Swiss investment giant UBS is planning to further tap into the affluent segment in the US by launching a digital wealth manager in the country.
The bank will launch a digitally scalable advice model for wealthy Americans sometime next year, it said while presenting its Q3 2021 earnings report.
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At present, UBS operates a brokerage model to sell its products to high-net-worth and ultra-high-net- worth US customers.
The latest offering will target clients who have investible assets between $250,000 and $2m.
While UBS is planning to develop the new business organically, it is also considering acquisitions to speed up the strategy.
UBS chief executive Ralph Hamers has been quoted by Bloomberg as saying in an interview: “Organic growth is basically the default. If there is an inorganic option that could accelerate us into that direction, we would certainly consider it.”
The new digital wealth business will also give customers an option to consult human adviser on their investment needs.
UBS currently caters to nearly two million customers in the US. Most of these customers are said to be ‘workplace wealth clients’ with sizeable pension funds and stock options.
The Swiss bank’s new offering, which targets this customer base, is also expected bring new clients to it.
Meanwhile, the move is likely to further spur competition with rival firms, including Morgan Stanley and Goldman Sachs.
In February this year, Goldman launched a fully digital investment management service called Marcus Invest for less affluent customers.
Last year, Morgan Stanley purchased Eaton Vance and ETrade Financial in a bid to bolster its mass affluent sector business.
