UBS Outlines Mass Millionaire Ambitions in Greater China

UBS global wealth management has established a dedicated team to mass millionaires in the region and unveiled its ambition to double the number of clients in the segment for the Greater China market.

UBS global wealth management has established a team dedicated to the coverage of private clients – mass millionaires with a net worth of $1 million to $5 million – the bank said during a media briefing yesterday when it announced the launch of the new business model for Greater China. Within this segment, it is mainly targeting four main groups of individuals: entrepreneurs, young families, financial and non-financial professionals.

The Swiss private bank aims to double the number of clients in the segment over the next three years. Currently, the private client segment accounts for a mid-single-digit percentage of the total number of Greater China clients.

The private client team has about 60 staff, including client advisors and specialists, alongside a wealth concierge team.

In covering the mass millionaire market in Greater China, UBS’ digital capabilities will feature strongly, particularly with the usage of its content platform Circle One, which includes actionable investment ideas, and its digital banking app.

UBS will rely on three levels of engagement with private clients including bank-led investing via discretionary portfolio management, an advisory model and self-directed investing – an option that is particularly suitable for financial professionals who are well acquainted with financial products and services.

The private client market is a well-established segment in the industry with Hong Kong being one of the fastest creators of mass wealth, including one millionaire out of every 13 people living in the city, according to a study by Citibank. In fact, consumer banking units in Hong Kong have longstanding businesses covering the segment under the same nomenclature including Citigold Private Client and DBS Treasures Private Client.

But UBS is confident that its wealth management roots will serve it well with competitive advantages such as a dedicated multi-asset chief investment office or access to a product shelf designed for the ultra-rich with solutions like customized discretionary mandates or exclusive hedge funds.

«We are not a retail bank,» said Jamee Wong, UBS’ private client head for Greater China, commenting on competing against established rivals in the market. «We are a premier private bank and a wealth manager. This is in our DNA. We do wealth management every single day.»