UBS to trial U.S. banking services as it expands wealth push

Traders Union
All News
Financial News
UBS trials U.S. banking

Highlights

UBS will pilot U.S. bank accounts with staff by December 2024, aiming to launch services for wealthy clients from mid-2027.
Americas wealth management generated $12.2 billion revenue in 2023 and just under 13 per cent pre-tax profit margin, lagging Morgan Stanley's 29 per cent.
Swiss government proposes stricter capital rules for UBS's foreign subsidiaries, potentially increasing costs for U.S. expansion as UBS reports adviser unrest and asset outflows.

Employee pilot ahead of U.S. launch

As first reported by Financial Times, UBS is set to open bank accounts for U.S. staff as early as December to test pricing and products before expanding the services to wealth management clients from the middle of 2027, according to people familiar with the matter. The trial marks the first phase of the bank's effort to build a full-service banking presence for wealthy Americans.

A national banking charter allows UBS to provide cheque and savings accounts, mortgages and other lending products alongside investment advice in the U.S. Until now, many of its U.S. wealth management clients have relied on other lenders for day-to-day banking even when UBS managed their investments.

The move is aimed at helping UBS compete more directly with Wall Street rivals including Morgan Stanley and Bank of America, whose banking operations support more profitable wealth management businesses. Banks often test new consumer products with employees first to identify operational issues and refine technology, pricing and product design before a wider rollout.

Profitability pressure and strategic backdrop

UBS's U.S. expansion remains central to the strategy of wealth management co-heads Iqbal Khan and Rob Karofsky as the bank seeks to widen its client base to affluent customers with between $2 million and $10 million of investable assets. Executives also expect that a broader banking offering will make clients less likely to switch to competitors that already handle their everyday banking, according to people familiar with the matter.

UBS's Americas wealth management business generated $12.2 billion in revenue last year but remains its least profitable region, with a pre-tax profit margin of less than 13 per cent. By comparison, market leader Morgan Stanley posted a 29 per cent pre-tax profit margin in its wealth management division last year.

The Americas unit also records nearly $6 billion of net asset outflows in 2025 amid adviser departures and unrest over changes to pay, although it returns to net inflows in the first quarter of this year with $5.3 billion of net new money. The U.S. growth plan is moving forward even as UBS faces a stand-off with the Swiss government over proposed tougher capital requirements after the collapse of Credit Suisse.

The Swiss government proposes requiring UBS to hold significantly more capital against foreign subsidiaries, including its U.S. operations. Swiss finance minister Karin Keller-Sutter says the reforms would make U.S. growth more expensive, while chief executive Sergio Ermotti insists that shrinking is not an option; UBS declines to comment.

Our earlier coverage of Customers Bancorp’s December 2025 rating action explained that its long-term outlook was revised to Positive while key debt and deposit ratings were affirmed, pointing to improving credit momentum. We also noted why such actions matter for investors and funding markets, as they reflect a rating agency’s view of a bank group’s longer-term credit conditions even when headline ratings stay the same.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.