UBS Group AG UBS intends to transform its wealth management business in the United States into six divisions and focus more on wealthy clients tumbling below the ultra-wealthy level, according to an internal memo reviewed by Reuters.

The transformation plan indicates the company’s efforts to enhance its performance in the United States.

Details of UBS’ Wealth Management Unit Transformation Plan

According to the Wall Street Journal, which first reported the news of the transformation, UBS plans to allocate more resources to wealthy clients—a group that the company believes is important for its expansion in the United States.

The transformation, which will take effect on Jan. 1, 2025, will shift the framework from two national divisions to four regional ones, in collaboration with UBS International and its Wealth Advice Center. According to the memo, the shake-up aims to improve client response, accelerate decision-making and strengthen connections.

This new arrangement will authorize the company’s field leaders through faster decision-making, enhanced responsiveness to client needs and greater connectivity.

Prior Efforts to Enhance Wealth Business by UBS

Wealth management is UBS Group’s flagship business, which accounts for more than 50% of the Swiss bank's total revenues.

According to a Reuters report from September, UBS is in discussions to form a wealth management joint venture (JV) in India with 360 One WAM, a Mumbai-based firm, formerly known as IIFL Wealth Management. This potential JV is expected to expand UBS’ wealth management business of India to high-net-worth individuals in addition to its existing ultra-high-net-worth individuals.

Further, in a move to improve the company’s services for ultra-wealthy clients, UBS announced a realignment of its wealth management business. In July, the company established a new division known as GWM Solutions to consolidate different products for clients. This unit offers services that include investment management, lending, family and institutional wealth management and alternative investments.

UBS’ Price Performance and Zacks Rank

Shares of UBS have gained 1.8% in the past six months against the industry’s decline of 5.4%.

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Currently, UBS Group carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Banks' Efforts to Enhance Wealth Management Business

According to a Reuters report from September 2024, Stifel Financial Corp. SF is in discussion with B. Riley Financial to acquire its wealth management business for more than $100 million.

This potential buyout aligns with SF’s CEO Ron Kruszewski’s strategy of making opportunistic acquisitions, which has been a key factor in the firm’s growth and expansion in the wealth management space.

This June, Citizens Financial Group, Inc. CFG unveiled a few developments aimed at accelerating the growth of its wealth management business to attract new high-net-worth clients.

CFG’s long-term strategy involves growth in wealth management offerings, improvement of capabilities in the high-net-worth segment and expansion into key markets.

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