UBS recognizes the need to improve profitability within its U.S. wealth management business and is taking a strategic approach to achieving sustainable growth.
The Swiss bank is investing heavily in advisor services, technology, and expanding its client reach across wealth segments. Additionally, UBS is pursuing a U.S. national bank charter to enhance lending and banking capabilities.
“We acknowledge the profitability gap between our U.S. operations and peers,” says Rob Karofsky, president of UBS Americas and co-president of Global Wealth Management. “Rather than downsizing, we’re focused on investing to drive profitability.”
Technology plays a key role in UBS’ strategy. The firm is developing AI-powered digital assistants for advisors and implementing modular technology solutions to streamline business functions like client onboarding and alternative investments. “We must prioritize,” Karofsky says. “We can’t execute everything for everyone simultaneously.”
UBS continues to dominate the ultra-high-net-worth (UHNW) space, reinforcing its commitment to elite clientele. To better serve these clients, UBS is rolling out specialized service teams, called pods, within its four newly defined U.S. regions. Each pod, consisting of about a dozen specialists, collaborates with advisors to deliver tailored wealth solutions. These experts focus on areas such as business sales and philanthropic planning. UBS plans to establish up to 20 pods nationwide.
At the other end of the spectrum, UBS is scaling its Wealth Advice Center, a hybrid model combining automated investment management with human guidance. To fuel expansion, the firm is aggressively hiring, particularly targeting recent college graduates, and establishing Digital Wealth Centers in each region. UBS aims to triple its Wealth Advice Center staff, currently at 400, within the next three years. This initiative also serves as a talent pipeline for future financial advisors.
Between UHNW clients and retail investors lies a sizable market that UBS categorizes into two key segments: “core affluent” clients with investable assets between $500,000 and $5 million, and “high-net-worth” clients with assets between $5 million and $25 million. UBS is expanding its advisor force and client base within these segments through investments in feeder channels such as Workplace Wealth Solutions, which includes financial wellness and retirement services. These offerings create a bridge for new clients entering UBS’ ecosystem.
“Our goal over the next three to five years is to scale, particularly in high-net-worth and core affluent segments,” Karofsky says. “We aim to build a well-balanced client portfolio across all wealth bands.”
Recruiting remains a priority for UBS. Recently, the firm hired a three-person advisory team in Denver, previously with Cresset Capital, managing $880 million in UHNW assets. While some concerns have emerged regarding UBS’ recent adjustments to its advisor compensation structure, Karofsky asserts that the firm remains highly competitive in advisor payouts. “We are among the highest payers on Wall Street,” he says. “Our grid changes are not cost-cutting measures.”
Despite industry speculation, UBS maintains stability within its advisor headcount, though it does not publicly disclose exact figures. “The number of advisors has been very stable and remains so,” Karofsky notes. “Our ultimate goal is to enhance advisor compensation and create the best environment for career growth.”
While UBS acknowledges potential short-term attrition due to structural adjustments, its long-term strategy is clear—building a robust, technology-enabled, client-focused wealth management platform that ensures sustainable growth for both advisors and clients alike.
