A significant step toward expanding its presence in the global financial hub was announced by UBS on a Monday, with the Swiss bank confirming that an application for a banking licence had been submitted in the United States. This action served to underscore the firm’s clear intention to increase its wealth management business within the world’s largest economy, even as regulatory bodies in its home country sought to impose restrictions on its international ambitions. The move was reported to be a direct consequence of the challenging environment created following the acquisition of its former rival, Credit Suisse, after the latter’s collapse in 2023.
Since the major takeover, UBS has been confronted with new regulations in Switzerland. These proposed rules have been perceived by the bank as so stringent that internal examinations were conducted into the possibility of relocating the bank’s headquarters abroad, according to individuals familiar with the matter. While senior executives at the Zurich-based institution have consistently maintained that there is no intention of leaving Switzerland, it is understood that establishing a more solid foothold in the U.S. could be instrumental. This strategic establishment would allow the bank to drive business growth more effectively, thereby satisfying investor demands for greater returns and mitigating some of the restrictive impacts of the new domestic regulations.
The drive for growth within the United States was formalized in an internal communication. In a memo that was distributed to staff, Rob Karofsky, the president of UBS Americas, and Michael Camacho, the head of UBS Global Wealth Management US, confirmed that the application for a National Bank Charter for UBS Bank USA had been filed. It was conveyed that this measure was an integral part of the long-term objective to build upon the bank’s status as a premier global wealth manager in the U.S. and to direct investment into areas that are expected to be the main drivers of future growth.
The regulatory pressures in Switzerland were reported to be escalating. In an attempt to prevent any recurrence of the Credit Suisse meltdown, the Swiss government has proposed stricter capital rules that would specifically require the bank to hold more capital against its foreign units. Swiss Finance Minister Karin Keller-Sutter stated that this measure would inevitably make foreign expansion “more expensive” for the bank. It was further reported that UBS holds concerns that these impending rules will place the firm at a competitive disadvantage relative to its global rivals, and the bank is reportedly hopeful that a compromise can eventually be negotiated with the Swiss authorities.
If the application were to be granted, the banking licence would allow UBS to offer a full and comprehensive range of services that are typically provided by major U.S. banks. This expanded offering would include essential retail banking products such as checking accounts, savings accounts, and mortgages. The bank stated that, subject to the necessary regulatory approvals, it was anticipated that the licence would be granted in 2026. Should the application be successful, UBS would attain the distinction of being the first Swiss bank to be granted such a licence in the United States.
The internal communication made clear that the application did not signal any immediate launch of new products but was instead designed to pave the way for future steps. It was emphasized that the process for developing new products and services is inherently complex, often lasting for several years, and would be rolled out in phased developments. The United States is recognized as the most important growth market for the bank’s core wealth management business, a fact substantiated by reports that more than 1,000 individuals became millionaires every day in 2024.
Despite its global footprint, the bank is currently less profitable than leading U.S. financial institutions such as Morgan Stanley, a gap that the firm has publicly stated it aims to narrow. CEO Sergio Ermotti had previously noted in 2024 that the bank was burdened with the cost structure of a much larger organization but currently lacked the comprehensive product offering required to fully exploit its potential. The strategic importance of scale in the U.S. wealth management market was also highlighted by Chairman Colm Kelleher, who pointed out that Morgan Stanley had managed to double its profitability following its acquisition of the U.S. financial services firm, Smith Barney.
