UBS is planning a new digital platform for its wealth management. This should initially start in China. However, the major Swiss bank does not yet have a license for this.
In China, UBS wants a digital banking license to roll out a wealth management platform. Edmund Koh, the head of UBS for the Asia-Pacific region, told the South China Morning Post: “We have to scale, and I will do that for UBS in collaboration with the Chinese authorities.”
With a digital banking platform, UBS would compete directly with the Chinese giants Tencent and Alibaba, which already have online banks with Webank and Mybank.
A hurdle for UBS is the still missing license for digital banking in China. Koh expects that the framework conditions for regulation will already be in June or July. Then Koh hopes that the approval process for UBS will also be dealt with quickly.
Much lower costs
UBS’s plan with the digital wealth management platform primarily involves low-cost growth. While, according to Koh, UBS currently costs around $ 25,000 onboarding a wealthy client, this would only cost $ 60 with a digital bank.
According to further statements by Koh, UBS first wants to establish the platform in China and then roll it out globally. It would be a renewed attempt by UBS after Smartwealth to create a purely digital offer in wealth management.
China also wants to increasingly enable digital banks to offer digital services and has been working on a corresponding set of rules since last year. One of the goals is to reduce the risks in the financial sector.
Will UBS and Credit Suisse merge after the Corona crisis?
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Yes, because they will not be able to bear their high costs on their own.
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Yes, there will be cooperation in some areas.
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UBS will swallow Credit Suisse.
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Credit Suisse will swallow UBS.
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No, both banks will still be independent in five years.
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