UBS Group AG has filed an application for a national bank charter for its US franchise as it seeks to expand in the region.
A national bank charter will help UBS Bank USA to expand offerings for wealth management clients to include “bank-provided payments, checking and savings account services,” according to a memo seen by Bloomberg News that was confirmed by a spokesperson.
“Our US clients hold significant deposits and largely rely on other banks for their everyday banking needs,” Americas boss Rob Karofsky and the region’s head of wealth management, Michael Camacho, said in the memo. A wider selection of products will “help deepen the relationship” between financial advisers and clients, they said.
The Office of the Comptroller of the Currency, the US agency responsible for reviewing the bank-charter application, has received the firm’s request, according to an OCC spokesperson.
UBS has long been vocal about the need to improve performance in its US wealth management unit. The region ranks alongside Switzerland as the biggest generator of revenue but expenses are far higher.
Chairman Colm Kelleher said last year that his bank would eventually look to buy another US wealth management firm, once the Credit Suisse integration is complete.
UBS, which is the largest wealth manager outside the US, has struggled to expand in the world’s largest economy. It operates a network of financial advisers who are more loosely bound to the bank than regular employees.
The bank said in the memo it expects approval for the bank charter next year.