Why UBS Continues to Dream of America Despite Provocations from Bern
UBS, Switzerland’s largest bank, is maintaining ambitious plans to expand its presence in the United States, even as Swiss authorities introduce stricter capital requirements aimed at curbing the risks associated with the bank’s growth abroad. This development has sparked tensions between the bank’s leadership and the Swiss government, particularly regarding the future of UBS’s American operations.
Growing Presence in the United States
UBS already holds a significant footprint in the U.S., where it employs around 25,000 people, including roughly 5,700 financial advisors. The bank’s CEO, Sergio Ermotti, has openly expressed optimism about increasing its market share in North America, underscoring the potential for growth in the region. UBS aims to evolve from a specialized wealth manager for ultra-high-net-worth individuals into a universal bank serving a broader clientele, including ordinary millionaires.
By the end of 2027, as part of its “Build the Bank” initiative, UBS plans to introduce services such as payments, private and savings accounts in the U.S., with potential future offerings including loans. This marks a strategic move towards competing with established American institutions like J.P. Morgan Chase and Wells Fargo, which currently provide these services to UBS clients.
Regulatory Hurdles from Bern
However, these expansion plans face considerable challenges from Bern. Swiss Finance Minister Karin Keller-Sutter recently announced proposals for tougher capital regulations targeting systemically important banks like UBS. The key point is to ensure that foreign subsidiaries of such banks are fully backed by high-quality core capital (known as CET1) at the group’s headquarters. This measure is aimed at protecting Swiss taxpayers from bearing the risks associated with UBS’s overseas growth, especially in the U.S.
If these regulations are enforced, UBS would effectively need to “double pay” when acquiring American banks—both the purchase price and an equivalent equity amount at the Swiss parent level would need to be financed. This could make U.S. acquisitions considerably more expensive and potentially inhibit UBS’s expansion ambitions.
A Complex History with America
Bern’s cautious stance is influenced by UBS’s troubled history in the U.S. Swiss banks have faced significant reputational and financial setbacks in America. During the late 1990s, UBS was embroiled in controversy over dormant World War II-era assets. More severely, the 2008 financial crisis, driven by toxic U.S. real estate securities, nearly pushed UBS to insolvency, necessitating billions in governmental support. Similarly, Credit Suisse’s collapse was largely linked to losses in its U.S. investment banking activities.
Despite these setbacks, America remains an essential market for UBS. The United States is home to the highest number of millionaires—estimated at 24 million according to UBS reports, surpassing even entire countries like Taiwan in wealth accumulation—and presents unparalleled wealth growth opportunities.
The Challenge of Loyalty and Competition
One particular challenge for UBS is its dependence on financial advisors in the U.S. These advisors often act like independent entrepreneurs who control client relationships rather than the bank itself. This dynamic creates vulnerability, as advisors frequently switch firms, taking client assets with them. UBS has experienced significant advisor attrition; in 2025, it lost more financial advisors than any other bank, though it still anticipates net new inflows this year.
To retain top talent, UBS has implemented aggressive recruiting strategies, including offering substantial signing bonuses—sometimes as much as five and a half times the revenue a new advisor generated in the previous year—in return for long-term commitments.
Size and Scale in a Changing Industry
Analysts emphasize that scale is essential for UBS to remain competitive in the U.S. market, not only to benefit from cost efficiencies but also to invest in transformative technologies reshaping wealth management. While the bank’s leadership insists on primarily organic growth, acquisitions remain on the table, especially after the completion of UBS’s integration of Credit Suisse.
Previous acquisition targets have included the digital wealth manager Wealthfront and regional U.S. banks like Silicon Valley Bank and First Republic—though these deals eventually fell through. Notably, the collapse of both banks during the regional banking crisis of 2023 and the turbulence surrounding Credit Suisse have underscored the risks inherent in large-scale U.S. expansions.
Political and Strategic Outlook
The Swiss authorities’ firm stance on capital requirements signals ongoing political headwinds for UBS’s U.S. ambitions. Nonetheless, CEO Sergio Ermotti and Chairman Colm Kelleher remain resolute. Kelleher, who has Wall Street experience, envisions UBS as “the first choice for very wealthy private clients” and remains committed to the U.S. market despite regulatory and political pressures.
UBS’s continued focus on America reflects a broader strategic calculation: the United States, despite its risks, offers unmatched opportunities for growth and wealth management. While Bern aims to mitigate financial risks to Swiss taxpayers, UBS views its American expansion as crucial to its long-term competitiveness and survival in a rapidly evolving global banking landscape.
This article is based on reporting from the “Neue Zürcher Zeitung am Sonntag” and presents the current dynamics between UBS’s ambitious U.S. growth plans and the Swiss government’s regulatory approach.