UBS plans digital investment advice for Americans with up to $2 million

October 26, 2021

By Matt Scuffham and Brenna Hughes Neghaiwi

NEW YORK/ZURICH (Reuters) -Swiss bank UBS wants to build a digitally scalable advice model for affluent clients in the Americas with up to $2 million to invest, it said on Tuesday as it reported third-quarter earnings.

As part of its new 2025 strategic vision, which Chief Executive Ralph Hamers said would be presented in February, the bank intends to provide wealthy clients in the Americas with a “seamless digital experience with remote human advice”, it said in presentation slides.

The world’s largest wealth manager is following a trend set by U.S. rivals Goldman Sachs and Morgan Stanley in looking to broaden their client bases beyond the super high net worth clients they traditionally serviced.

Earlier this year, Goldman launched a digital wealth management service named Marcus Invest for customers investing a minimum $1,000.

Morgan Stanley acquired E*Trade last year in a $13 billion deal executed in part to further its reach in the mass affluent sector.

The banks are looking to earn money from a wider pool of clients as part of plans to develop more predictable revenue streams and reduce their reliance on unpredictable capital markets activities.

UBS is targeting individuals with between $250,000 and $2,000,000 to invest, a demographic that is seen by analysts as having more growth potential than high net worth people, who have more than $2 million in liquid assets.

Wealth managers have been increasingly using fintech and artificial intelligence to tap into the mass affluent demographic, which includes younger investors more comfortable investing online.

(Editing by Michael Shields; Editing by David Gregorio)

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