UBS seeks U.S. bank charter to boost client stickiness — and profits

As more wealth managers seek to diversify their ties to clients through banking products, UBS is looking to join their ranks in the U.S. 

The Swiss firm announced in a memo to employees Monday that it has applied for a national charter for a U.S. bank. If granted by the Office of the Comptroller of the Currency, the charter will allow UBS to offer banking products like checking and savings accounts and payment services to its U.S. wealth clients.

"Offering more competitive and comprehensive banking solutions will help deepen the relationship between [financial advisors] and clients and solidify our position as the wealth manager of choice in the U.S.," Rob Karofsky, co-president of global wealth management and president of UBS Americas, and Michael Camacho, head of UBS global wealth management U.S., wrote in the memo.

'Stickiness' and a bid to improve profits

Many large U.S. wealth managers that are attached to big banks see offering banking products and services not only as a way to boost their revenue but also make it harder for clients to take their business elsewhere. Such "stickiness," especially with wealthy investors, is particularly prized at a time when advisors are constantly being presented with offers to move other firms and take their clientele with them.

UBS has also been on a push to improve profits for its U.S. wealth business. In an earnings call in July, CEO Sergio Ermotti said many of his firm's competitors benefit from "ancillary activities around their wealth management business, which contributes to a higher margin."

"But we can narrow the gap substantially, particularly when you look at the wealth management operation in the U.S," he said.

With its headquarters in Zurich, Switzerland, UBS is easily one of the biggest banks in Europe by many measures. But in the U.S., UBS clients "hold significant deposits and largely rely on other banks for their everyday banking needs," according to the memo.

UBS' Build the Bank plan a 'multi-year effort'

If UBS' request is granted by the comptroller of the currency, the firm will be the first Swiss bank to have a national banking charter in the U.S. Approval isn't expected until next year, according to the memo.

UBS said in the memo that the charter application is part of its Build the Bank plan, "a multi-year effort to develop new products, systems, and technology, which is already underway." UBS said there will be no changes to financial advisors' current ability to offer banking, lending and cash management services.

In September UBS, confronted with an acceleration in advisor departures over the past year, approved changes to its pay policies to reward advisor loyalty and provide further incentives to work with wealthy clients. UBS reported in its July earnings call that it had 5,773 advisors at the end of the second quarter in its Americas unit, which includes the U.S., Canada and Latin America. That was down by 111 advisors from the first quarter of 2025 and 229 from the second quarter of last year.