3. Strong via Partnerships
(Image: Duy Pahm, Unsplash)
In Switzerland, UBS’ brand name is golden, but that’s not the case everywhere. In China, the Swiss bank benefits from its decades of experience as a wealth manager, compared to local rivals. Partnerships like UBS’ tie-up with Japan’s Sumitomo Mitsui can serve as a blueprint.
The advantage: platforms and products are scalable (where private bankers, of course, are not). This takes the sting out of pricey hiring – and UBS could put that money towards catering to its existing clients better. To his credit, Ermotti is already moving in this direction – albeit slowly.
4. Slumming it with Affluents
It’s not hard to see which clients UBS loves most: it fights hard against Credit Suisse and U.S. rivals for a chunk of the ultra-high net worth market. Every second billionaire in the world is a client of UBS, the bank claims, but whether this focus on those with $50 million or more is paying off is unclear.
The bank is earning more – measured by assets under management – by stooping the less wealthy. These are the clients who complain vociferously about not being treated as attentively as the sought-after ultra segment: they receive standardized products, little personalized attention, and pay for every inch of additional service.
UBS could take some of the segment’s profits and put them towards expanding the somewhat neglected clientele (as it decided to do in Taiwan in 2016). The Swiss bank could even hold its nose and go lower than the rich: according to Boston Consulting Group, affluent clientele will grow sharply in the coming five years. Their collective $18 billion in assets are a golden opportunity for wealth managers willing to tweak their service to meet the needs, the consulting firm says.
