UBS Group AG (UBSG.S) has been granted a national banking licence in the United States, the Swiss bank announced on Friday. The approval is expected to bolster UBS’s efforts to expand its wealth management operations in the world’s largest economy. UBS, a global financial services firm, provides wealth management, investment banking, and asset management services to individuals, institutions, and corporations worldwide. The bank is headquartered in Zurich and Basel, Switzerland.
The Office of the Comptroller of the Currency approved UBS’s application for a national bank charter. This represents a significant step for the bank as it navigates increasingly stringent banking regulations in Switzerland. Rob Karofsky, President of UBS Americas, stated that this development will strengthen the bank’s momentum in the U.S. and reinforce its ambition to lead as a premier global wealth manager.
UBS had sought approval to convert its U.S. bank, UBS Bank USA, into a nationally chartered bank. The licence will enable UBS to offer a comprehensive suite of services, matching those provided by U.S. lenders, including checking accounts, savings accounts, and mortgages. Brian Carlin, UBS’s head of global wealth management U.S., indicated that the charter would facilitate the expansion of the bank’s client base and services, although this expansion is expected to take time. The introduction of banking products such as checking and savings accounts for clients is anticipated towards the end of 2027, according to sources familiar with the matter.
The U.S. market is considered a crucial growth area for UBS’s core wealth management business, with a substantial number of new millionaires emerging daily. This strategic move comes as UBS aims to satisfy investor demands for increased returns and bolster its U.S. operations, especially following its acquisition of Credit Suisse. Stricter regulations are on the horizon in Switzerland after the collapse of Credit Suisse in 2023. The Swiss government is expected to propose draft legislation with more stringent regulations, potentially increasing capital requirements for UBS.
