By Andrew Welsch

UBS received conditional approval from U.S. regulators for a national bank charter, positioning the company to expand its banking and lending services for wealth management clients in the U.S.

A national charter is a "game changer" for UBS, says Robert Karofsky, co-president of global wealth management and president of UBS Americas. "It's a very important part of our strategy to grow our wealth management business and grow it profitably."

UBS applied with the Office of the Comptroller of the Currency for the charter last year as part of an effort to improve the profitability of its Americas wealth management unit, which had 5,779 financial advisors and $2.3 trillion in assets at the end of the third quarter, the most recent period available. That head count includes some advisors in Canada and Latin America.

The Swiss bank already offers securities-based lending, credit cards, and other services to its U.S. wealth management clients thanks to its ownership of an industrial bank: UBS Bank USA. But obtaining a national bank charter would enable UBS financial advisors to offer clients additional services, such as checking accounts, and potentially entice clients to do more business with the company.

Conditional approval will allow UBS to develop and test services while it awaits full approval, which could come later this year. A broader rollout of UBS' banking and lending services could come in the latter half of 2027.

UBS executives have cautioned that building out its lending and banking services will take time. But UBS can draw on its long experience providing personal banking services in its home market of Switzerland, where the 160-year-old bank has an extensive branch network and serves more than one-third of Swiss households.

Other wealth management companies, such as Bank of America (which owns Merrill Wealth Management) and Wells Fargo, have also been leaning into banking and lending services as a way to win more wallet share with clients. It can also help boost a bank's net interest income, a key performance metric that is the difference between what banks earn on interest-bearing assets and pay customers on their deposits.

Brian Carlin, head of U.S. banking at UBS Global Wealth Management, says the company sees the banking expansion as a way to serve all of clients' needs. "Advisors need all the capabilities -- investment, banking, lending -- all in one place," he says. "I think it'll truly be a big differentiator moving forward."

Write to Andrew Welsch at andrew.welsch@barrons.com

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January 15, 2026 09:00 ET (14:00 GMT)

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