UBS gets final nod for US bank licence amid growth push
The lender is planning to expand offerings for wealth clients in the United States
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[ZURICH] UBS has been given the green light for a full-blown US bank licence, in a boost for the bank’s ambitions to grow in the region.
The Swiss lender said on Friday (Mar 20) that 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.
The charter is a cornerstone in an ambitious effort by chief executive officer Sergio Ermotti and UBS Americas president Rob Karofsky to boost profitability.
“This will strengthen our momentum in the US, and it reinforces our ambition to lead as a premier global wealth manager,” said Karofsky in a video statement broadcast on LinkedIn.
While the division is big – it oversaw US$2.3 trillion in invested assets across the Americas at the end of last year – UBS has long been vocal about the need to improve performance.
The bank is planning to expand offerings for wealth clients to include payments, checking and savings account services, and a wider selection of products.
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Brian Carlin, UBS’ head of global wealth management in the US, 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.
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Separately, the Swiss bank recently revamped its compensation model for financial advisers by raising the payouts and benefits that they get, in an attempt to retain and hire more staff in the region.
The bank had seen high levels of attrition in the last few years and worked towards curbing the defections. It now operates with a regional network of about 5,800 financial advisers who, while delivering UBS products to clients, are more loosely bound to the bank than regular employees.
Chairman Colm Kelleher once said the bank would eventually look to buy another US wealth manager, once the integration of Credit Suisse – which it agreed to buy three years ago – is complete.
UBS is nearing the end of that process. The takeover has beefed up the US investment bank, which it plans to use to sign on entrepreneurs and rich individuals as clients for its private banking business.
It said the US banking charter does not change anything for clients for now. They will continue to have the same account and cash management services through their financial advisers.
UBS filed an application in October 2025 to help UBS Bank USA expand offerings for wealth management clients. It got a conditional nod in January.
The bank sees the US, 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 it is less profitable than leading US banks such as Morgan Stanley. It is also facing obstacles in revamping the US business after losing billions of dollars in client assets and nearly 200 financial advisers, according to analysts and industry sources, Reuters reported.
A firmer foothold in the US could help UBS grow its business as it seeks to satisfy investor demands for bigger returns.
The need to bolster the US business has taken on extra urgency since UBS bought Credit Suisse, prompting the Swiss government to embark on plans to make the banking sector less risky with stricter regulations.
Switzerland 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 it at a disadvantage. BLOOMBERG, REUTERS
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