Investing in digital and structural innovations, such as new mobile apps and a new economy (NE) service, has allowed UBS Global Wealth Management (GWM) to deliver record results in Asia, winning it the Outstanding Global Private Bank: Asia-Pacific category at the PBI Global Wealth Awards 2022, held on 6 October.
UBS GWM recorded a record profit before tax (PbT) figure in APAC last year of US$1.2 billion, up by US$ 176 million, with Q4 bookings showing a 20% Year-on-Year (YoY) increase.
Asian assets under management (AuM) reached the number one position at US$521 bn, with the region contributing over a quarter of the global group’s PbT.
Clients in APAC are happy as well according to UBS’ latest annual ‘Client-Based Insights Survey’, conducted at the end of 2021, which showed that over 90% of APAC clients are very happy with UBS.
These results have been helped by well-trained long-standing staff and digital innovations designed to enhance the client experience (CX). The model is strong enough to resist any economic headwinds encountered in 2022. Examples of innovation include:
UBS [My Way]: this discretionary mandate offering provides clients with access to over 60 building blocks to create a portfolio customised to their own preferences. The blocks vary across sustainability-focused to alternatives such as private equity. Clients can pick what is most relevant and matters most to them, while in-house experts take care of the day-to-day portfolio management. UBS [My Way] has accumulated over US$2bn in regional invested assets within one year of its launch. In addition, more than 70% of clients in Asia have selected sustainability-focused building blocks in their portfolios, and 25% of AuM is invested in sustainability-focused building blocks.
UBS Circle One: Launched in 2022, this new mobile app is a digital platform that brings the best of UBS’ global ecosystem to clients, connecting them to experts, thought leaders and instant actionable ideas. It delivers chief investment office (CIO) thought leadership in an engaging and convenient way via interactive videos, podcasts, and live webinars on a daily and weekly basis, complementing traditional reports and physical events. Clients are able to receive timely actionable ideas and investment opportunities at their fingertips.
Digitalisation: The past two years of global pandemic have put our platforms such as UBS E-banking, E-trading, UBS Advisor Messaging (WeChat and Whatsapp) to the test. We are proud of how they have provided us with stability and sustained growth as a result of helping to deliver content that is personalized, relevant, on-time and seamless. By year end 2021, UBS’ online trades increased by over 90% YoY, with 70% of equity trades now done online by clients, proving the popularity of its digital offerings. Across Q1-3 2021, monthly online trading revenue increased by 65% YoY.
Structural innovations that contributed towards UBS’ win at the PBI Awards 2022 included its long-standing focus on a ‘one bank’ model, as exemplified by its dedicated Global Family and Institutional Wealth (GFIW) unit, formerly the Global Family Office. The GFIW supports entrepreneurs, family offices, and other private investors with sophisticated, institutional-like needs by providing them with more seamless, overlapping access to UBS’s investment banking and wealth management and transfer capabilities.
UBS’ dedicated New Economy Team (NET), set up in 2021, is another example that exemplifies its one bank strategy. . Comprised of sector experts and deal markers across its businesses, the unit is designed to capture opportunities for clients across all sectors and industries and connect new economy (NE) companies with industry peers, investors, and strategic partners, to the mutual benefit of all.
NET acts as a central point of contact, providing ‘one bank’ solutions to clients and access to UBS’ global and local networks for NE entrepreneurs selected by experienced bankers who know how to choose winners at an early stage of their development.
By year end 2021, YoY revenue from NE clients across the bank in APAC grew by over 90%.