Unmistakably, UBS is making strides in strengthening its footing in the highly lucrative U.S. wealth market.
In a bold move, UBS intensifies hiring wealth managers to cater to the affluent American populace, a move unfolding even as the financial giant mulls over shedding up to a third of its workforce globally, following the acquisition of Credit Suisse.
Mobilizing manpower amid merger mayhem
This year has witnessed UBS welcoming aboard 50 seasoned financial advisors, cherry-picked from esteemed institutions such as Merrill Lynch – a Bank of America subsidiary, JPMorgan Chase’s recently integrated First Republic Bank, Citigroup, and Wells Fargo.
Notably, the majority of these new hires were made subsequent to the March announcement of the Credit Suisse acquisition, a testament to the prioritization of UBS’s growth in the American wealth market.
Among the noteworthy recruits is BG Group, a powerhouse 13-member team that previously managed a portfolio valued at $2.5 billion at Merrill.
This surge in talent acquisition aligns with the robust growth that UBS has experienced, thanks to the Credit Suisse acquisition, propelling the company to secure its place as the second-largest wealth manager worldwide.
However, in the U.S., the battlefield of the ultra-rich wealth management, UBS ranks only fourth, trailing behind the native American banks.
UBS eyeing rich Americans
For UBS, the U.S. market isn’t just another region to conquer. It is a goldmine. The extraordinary growth of wealth witnessed in recent years underlines the immense potential this market presents.
Iqbal Khan, President of Global Wealth Management at UBS, underscored the importance of investing and nurturing the U.S. market as a pivotal strategy, symbolizing this commitment by meeting high-net-worth clients in southern California on the day of closing the historic Credit Suisse deal.
Despite the impressive growth, the U.S. acquisition did not directly affect UBS’s wealth business. Credit Suisse had left U.S. private banking behind in 2015, transferring roughly 275 financial advisors to Wells Fargo.
Nevertheless, UBS’s proactive hiring strategy has led to an increase of more than 25% in the number of private wealth advisors catering to ultra-high-net-worth clients in the U.S. over the past three years.
Cashing in on Generational Wealth Transfer
On another front, UBS is positioning itself to capitalize on the impending generational wealth transfer in the U.S., estimated to be around $18 trillion over the next seven years and an astounding $84 trillion over the next two decades.
As such, UBS is diversifying its adviser workforce and focusing on attracting and retaining advisors adept in serving this ultra-high-net-worth demographic.
The core strategy of UBS is geared toward serving a new generation of clients, standing on the precipice of the most significant wealth transfer in history.
If anything, the burgeoning number of millionaires worldwide, particularly those with net worths north of $50 million – over half of whom reside in the U.S. – signals a promising prospect for UBS to continue to solidify its position in the U.S. market.
While the ink dries on the merger agreement between UBS and Credit Suisse, UBS is already maneuvering to make the most of the opportunities that the wealthy U.S. market offers.
With a clear vision and a well-defined strategy, UBS is paving the way for a prosperous future in the global wealth management industry.
