Swiss investment banking leader, UBS, has reportedly scaled up its newly launched hybrid digital wealth management platform dubbed MyWay, in an effort to reach potential customers that fall outside of the its core ultra-rich client-base.
The largest wealth manager in the world is attempting to enhance its digital services through this move and expand its client base. Notably, the platform has now been opened to people with upwards of 250,000 Swiss francs ($278,000) in their bank.
The company’s new platform has supposedly attracted over $3.7 billion within its first year itself, which expedited UBS chief executive, Ralph Hamers’ vision of winning over more business from a demographic that falls under the lower echelons of the world’s global rich.
Evidently, UBS’s focus on adopting a digital approach to customers indicates a major shift in the private banking space, wherein human interactions and personal contact are typically vital for conducting business with wealthier clients.
The project, which began in May 2020 before Ralph Hamers assumed the chief executive role, could potentially bring in $30 billion in the next 12 months, claim reliable sources.
Bruno Marxer, head of the global investment management for the chief investment office of UBS, stated that the number of choices offered through the portal could be overwhelming for clients.
Marxer added that the ability to play around with different elements to fit customers’ personal needs and preferences is a more “intuitive” and “enjoyable” way to curate an investment portfolio for many people.
At the release of UBS’s Q1 results in April 2021, Hamers presented the new strategic effort that would target private clients or clients with up to $5 million in the bank, as per reports.
Reportedly, Hamers compared the company’s strategy with music and video streaming services Spotify and Netflix respectively, where people get personalized recommendations. Hamers further added that if they made their content available in that way, it would help UBS differentiate itself.
Experts have claimed that for an institution that already banks over half the global billionaire population, the much wider pool of the world’s 1% of millionaires poses an excellent growth opportunity.
Most of MyWay’s assets are from its native Swiss market, however, Asia has amassed nearly $1 billion since the portal’s launch. European markets are also on the cards for the project, reports suggest.
Since being rolled out into new market in Asia in October last year, the platform has attracted interest from customers ranging from smaller clients to several billionaires.
Customers can presently access MyWay through advisers although the bank has also been planning on making it available remotely.