Bank executives said this Friday (March 20) while announcing that UBS received approval to convert its U.S. bank, UBS Bank USA, to a nationally chartered bank.
Previously, the bank was a state-chartered bank, Brian Carlin, head of global wealth management banking, U.S., said in video shared by UBS in a Friday post on LinkedIn.
The approval for the national bank charter came from the Office of the Comptroller of the Currency (OCC), Rob Karofsky, co-president of global wealth management and president of UBS Americas, said in the video.
Currently, UBS Bank USA focuses on providing deposit and borrowing services for affluent and high net worth investors, according to its website.
UBS said in the post that becoming a nationally chartered bank is part of its effort to grow as a leading global wealth manager. Nothing will change for current clients, as they still have the same account and cash management services through their financial advisors, the firm said in the post.
The bank retains all its previous capabilities for banking but can now expand both the clients it serves and the types of products and services it can offer, Carlin said in the video.
“So, we’re now going to go head-to-head with offering everyday banking, you know, the key capabilities that our clients have today, many of which are being done at a competitor, giving them the ability to bring those to our platform to really partner with those financial advisors and their teams that they know and trust today and use that as a way of consolidating their assets and really expanding what they are able to do at UBS,” Carlin said.
The charter supports UBS’ U.S. growth strategy by enabling it to continue to invest in a modern, full-service banking platform, Karofsky said in the video.
“As we scale, this will strengthen our momentum in the U.S., and it reinforces our ambition to lead as a premier global wealth manager,” Karofsky said. “We have meaningful opportunities to grow lending and deposit activity, assets and profitability, and ultimately strengthen the overall UBS franchise.”
UBS said in a January post on LinkedIn that it had received conditional approval on its application for a National Bank Charter from the Office of the Comptroller of the Currency and expected to receive final approval later this year.