UBS Secures Key US Banking License in Bid to Reclaim Client Assets

The Swiss banking giant UBS is preparing a direct challenge to its American rivals, having cleared a major regulatory obstacle. The bank has received final approval to operate as a national bank in the United States, a move timed to counter recent setbacks in its crucial American wealth management division.

A Strategic Pivot Amid Operational Headwinds

This strategic shift does not come from a position of uncontested strength. The bank’s US wealth management business has faced notable pressure, recording net outflows of $14.1 billion in the fourth quarter alone. Compounding this, nearly 200 US financial advisors departed for competitors, a move triggered by a controversial new compensation model.

This operational weakness is mirrored in the company’s market performance. Since the start of the year, UBS shares have shed approximately 21 percent of their value, currently trading at 31.72 euros. Furthermore, the bank faces the prospect of significantly stricter capital requirements in its home market of Switzerland following the Credit Suisse acquisition.

Unlocking a Full Suite of US Banking Services

Previously, UBS operated in the United States under a limited license from the state of Utah. The new national bank charter, granted by the Office of the Comptroller of the Currency (OCC), fundamentally changes the competitive landscape. The institution can now offer the complete range of services provided by American credit institutions, from checking accounts to mortgages.

Should investors sell immediately? Or is it worth buying UBS?

The objective is clearly defined. UBS estimates that its roughly 700,000 US household clients hold approximately $150 billion in deposits with competitors like JPMorgan and Morgan Stanley. The bank aims to redirect these funds to its own platform by allowing customers to consolidate their wealth management and everyday banking under one roof.

A Measured Rollout with Long-Term Horizons

Halting the downward trend in the US will require a phased expansion of services, according to management. Checking and savings products are anticipated to launch around the end of 2027. In parallel, the bank is evaluating a cautious entry into crypto services, such as tokenized deposits, to further modernize its portfolio for affluent clients.

While the US application process began years before the current Swiss capital debate, as noted by Americas President Rob Karofsky, the new license now provides a vital instrument for global growth. With it, UBS positions itself as a direct challenger to established American full-service banks. However, executing these growth plans demands patience; the broad rollout of the new integrated platform is scheduled for the second half of 2028. Until then, management must demonstrate it can stem the recent client attrition in the US with its existing setup.