UBS moves toward full-service US bank as plans to extend wealth business

UBS is preparing to test everyday banking products with its own US workforce before extending a full-service banking offering to its wealthiest American clients, according to the Financial Times.

It reported that the Swiss bank intends to open accounts for US employees as soon as December, using the internal rollout to fine-tune pricing and product design ahead of a wider launch to wealth management clients from mid-2027.

The initiative represents the opening stage of a broader ambition to turn UBS into a full-service bank for affluent Americans, building on the national banking licence the firm secured earlier this year, when US regulators approved UBS Bank USA's conversion to a nationally chartered bank.

UBS has not commented on the reported banking pilot.  

Taking on Wall Street's biggest names

Holding that charter puts UBS in more direct competition with established US players including Morgan Stanley and Bank of America, both of which have used their banking arms to boost returns from wealth management.

It allows UBS to provide checking and savings accounts, mortgages and other credit products, bundled together with investment advice, something it has not previously been able to do in the US.

Wealth management co-heads Iqbal Khan and Karofsky have made the American banking push a central pillar of their growth agenda, alongside Khan's counterpart Karofsky steering the firm's day-to-day US strategy.

UBS's Americas wealth management arm brought in $12.2bn in revenue last year, yet it remains the group's weakest-performing region by profitability, with a pre-tax margin below 13%, against Morgan Stanley's 29% margin in wealth management over the same period, the FT reported.

The division also lost close to $6bn in net assets during 2025 amid advisor departures linked to unhappiness over changes to compensation. Momentum has since turned, with the unit pulling in $5.3bn of net new money in the first quarter of this year.

That improvement came alongside a strong start to 2026 for UBS group-wide. First-quarter net profit attributable to shareholders rose 80% year over year to $3.04 billion, with group revenue up 13% to $14.24bn. Global wealth management alone generated $7.1bn in revenue, up 11%, with pre-tax profit climbing 32% to $1.79bn and net new assets of $37.4bn for the quarter.

Chief executive Sergio Ermotti said the bank remained "on track to deliver on our financial objectives for 2026."

Targeting the wealthy

UBS is aiming the new banking push at a segment slightly below its traditional ultra-wealthy base, targeting clients holding between $2mn and $10mn in investable assets.

The bank estimates it serves around 700,000 US households in total, with roughly $150bn currently held in deposits at rival banks such as JPMorgan and Morgan Stanley, cash the firm hopes the new charter will help pull onto its own platform.

The push into everyday banking comes as UBS explores other ways to widen its product shelf.

The bank has been considering opening crypto trading to private banking clients in Switzerland, working for months on selecting partners for a digital asset offering that would initially let select Swiss clients buy and sell bitcoin and ether, with a possible later rollout to markets including the US.

Cost cuts elsewhere

The US expansion is moving forward even as UBS remains locked in a dispute with the Swiss government over proposed increases to its capital requirements, introduced in response to the 2023 collapse of Credit Suisse.

And the firm has been trimming headcount, cutting several hundred, mostly support staff, jobs across Europe, the Middle East and Africa in a move tied to the ongoing integration of Credit Suisse.

The reductions did not touch the US, where UBS employs roughly 5,700 financial advisors, and UBS has said it still expects to lose around 3,000 roles in Switzerland as that integration continues. The bank reported cumulative integration-related cost savings of $11.5bn so far, with a target run rate of $13.5bn by the end of 2026.