UBS has obtained approval for a U.S. national banking charter, according to InvestmentNews.
According to InvestmentNews, the charter permits UBS to convert UBS Bank USA into a nationally chartered bank. This change enables the firm to offer core banking products such as checking accounts, savings accounts, and mortgages. InvestmentNews reports that UBS intends to use this expanded authority to compete more directly with large U.S. financial institutions for clients' everyday banking relationships.
InvestmentNews explains that UBS seeks to strengthen its U.S. wealth management business by increasing client deposits and encouraging customers to consolidate more of their financial activity within a single platform. The firm has faced advisor attrition in the past year, and InvestmentNews notes that the charter supports UBS's broader effort to stabilize and grow its presence in the U.S. market.
According to InvestmentNews, UBS previously operated a Utah-chartered industrial bank that offered limited services, including securities-based lending and credit cards. The national charter significantly expands UBS's capabilities, particularly its ability to accept deposits and offer a broader range of banking services.
InvestmentNews highlights that the timing of the approval aligns with UBS's broader strategic and regulatory challenges. Following its 2023 acquisition of Credit Suisse, UBS operates with a substantially larger balance sheet. Swiss regulators have proposed new capital requirements that would require UBS to add more than $20 billion in capital, a proposal the firm has criticized, as reported by InvestmentNews.
InvestmentNews reports that UBS already manages approximately $2.3 trillion of its $4.7 trillion in global wealth assets in the Americas. The firm estimates it serves about 700,000 U.S. households, with roughly $150 billion in deposits currently held at competing institutions. UBS plans to use the national banking charter to capture a larger share of those assets, according to InvestmentNews.
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