\n Regulators this year approved UBS Bank USA\u2019s conversion to a nationally chartered bank.\n <\/p>\n
As UBS<\/a> prepares next year to open a bank<\/a> in the United States that is focused on high-touch services to its 5,644 financial advisors<\/a>, it intends to use an approach that rewards advisors for selling banking products, an activity many advisors dislike because it eats into time for selling and advising revenue-generating investments.\u00a0<\/p>\n Regulators this year approved UBS Bank USA\u2019s conversion to a nationally chartered bank; the goal is to focus on white-glove services for wealthy clients and their financial advisors.\u00a0<\/p>\n UBS intends to have the new offer up and running sometime in the middle of next year.<\/p>\n \u201cThe advisors are going to have a bank run by [UBS] wealth for wealth, which means the advisors are going to be very central to that relationship,\u201d said a source familiar with the matter this week. \u201cThey are going to get paid very handsomely for banking activity.\u201d<\/p>\n \u201cAt most firms, banking is largely non-compensable to advisors,\u201d the source said.<\/p>\n UBS \u201cexpects that advisors will find it a good economic proposition for them,\u201d according to the source. \u201cA lot of the advisors are excited about this opportunity.\u201d<\/p>\n A UBS spokesperson declined to comment when asked about details in any compensation plan for advisors and the new bank.<\/p>\n The large wirehouses like UBS typically introduce pay plans \u2013 known as \u201cgrids\u201d \u2013 in the industry during the fall to prepare advisors for changes in the coming year.<\/p>\n It was not clear what banking products \u2013 credit cards or mortgages, for example \u2013 will be the focus of UBS\u2019 more attractive pay.<\/p>\n But a UBS bank for advisors\u2019 clients does potentially shut down attempts for rival bankers, such as those at JPMorgan Chase, to approach clients with a pitch to consolidate investment accounts where they already do most of their banking.<\/p>\n Advisors typically dislike selling banking products like credit cards or mortgages; they want to focus on investing and financial planning<\/a>, activities that create revenue from clients.<\/p>\n \u201cIf I were starting a bank from scratch, I would heavily incentivize financial advisors to bring in client deposits and also for increasing credit lines and credit cards,\u201d said Lou Diamond, an industry recruiter. \u201cThe bank may be new, but UBS is already getting revenue from margin lending or securities-backed loans.\u201d<\/p>\n UBS wealth management<\/a>\u00a0in the Americas\u00a0last month reported<\/a> a decline\u00a0in its overall team of financial advisors, today reporting a decline of 2.2% \u2013 129 financial advisors over the past year.<\/p>\n It\u2019s been a slow, steady drip of\u00a0financial advisor attrition at UBS in the United States for several years.<\/p>\n A change in some financial advisors\u2019 compensation \u2013 announced at the end of 2024 and retracted less than a year later \u2013 didn\u2019t help.<\/p>\n A year ago, UBS reported 5,773 advisors in the Americas at the end of June. In 2026, that number is 5,644 for the 2.2% decline.<\/p>\n Meanwhile, with the stock market near record highs, UBS reported $900 million during the second quarter in net new asset inflows for its wealth management Americas group, despite $10 billion in second quarter tax-related outflows.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Regulators this year approved UBS Bank USA\u2019s conversion to a nationally chartered bank. As UBS prepares next year…\n","protected":false},"author":2,"featured_media":118668,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[11670,12480,223,50654],"class_list":["post-118667","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-bank","tag-compensation","tag-ubs","tag-wirehouse"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117134607356117233","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/118667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=118667"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/118667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/118668"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=118667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=118667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=118667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}