Last week it was reported that UBS seeks to strengthen its high net worth business with its new “My Way” platform which currently serves clients in Switzerland with other upcoming European countries as well as in Asia. According to Reuters, the wealth manager offers a hybrid service that combines technology with real people. As many fintechs seek to democratize access to financial services for demographic groups, both underbanked and not, UBS is moving upmarket.
Launched in May, My Way offers digital banking services to Swiss customers and has already captured more than $ 1 billion in assets – an amount that is considered the highest expected. Andre Spycher, head of sales management for UBS Wealth Business in Switzerland, told Reuters:
“Since our launch in Switzerland, we have never seen so many non-customers contact us. We still see huge upside potential in Switzerland; and as Asia’s largest wealth manager, we also see enormous potential in this. “
Sprycher says customers are willing at a premium for the service. All it takes is a deposit of 250,000 Swiss francs. Clients can still get the most out of their money, but they can also benefit from UBS advice.
Meanwhile, UBS had come out with a rating on 2021 – calling it the “Renewal yearAfter the year of COVID. Included in the rating is a prediction on the “next big thing” and Fintech is included in the list.
“We believe the next decade will reward investments in companies using technology to disrupt other industries. We expect “The Next Big Thing” to materialize in the Fintech, Healthtech or Greentech spaces, or be enabled and accelerated by the global rollout of 5G technology. Since 1973, if an American stock market was in the top two in the previous 10 years, it had only an 8% chance of staying there in the next 10 years and a 25% chance of falling in the bottom two. . This pattern suggests that “The Next Big Thing” is unlikely to come from the two main sectors of the past decade: technology and consumer discretionary. We have worked to identify market segments containing stocks that could see their earnings more than triple over the next ten years thanks to a large potential market (over $ 200 billion), a disruptive catalyst to drive growth for the decade. ahead and a cyclical catalyst to get things going again in 2021. Our conclusion: While the last decade has been about investing in the tech sector itself, we believe the next decade will reward investment in disruptors in industries undergoing technological transformation. . We expect “The Next Big Thing” to materialize in the fintech, healthtech or greentech spaces, or be enabled and accelerated by the global deployment of 5G technology. “
Although we tend to think of Fintech as the big news today, innovation in financial services is still in its early stages.
UBS estimates that FinTech revenues will register a 10.5% CAGR in 2018–2030. Perhaps a little obvious, UBS says the ongoing pandemic has “sparked a radical shift towards contactless and mobile payments, and e-commerce.” And once a Fintech has a customer, it’s easier to sell additional products and services.
Digital payments will continue to grow, as cash and checks still account for 39% of the $ 225 trillion in annual payment streams. UBS postulates that once you go digital, you are unlikely to go back to physical money.
Other promising areas include Proptech, Insurtech, online lending, investment services, etc. The gangs are all here. Central bank digital currencies (CBDCs) are being promoted and their use is expected to further drive fintech adoption. Of course, artificial intelligence will also play a role. Looks like the Year of Renewal will be quite transformational.