UBS is preparing to open a U.S. bank tailored to its wealth-management clients, and it plans to compensate its roughly 5,644 financial advisors for selling banking products—a departure from the industry norm where such activity is often uncompensated. The move comes after regulators this year approved the conversion of UBS Bank USA to a nationally chartered bank, clearing the way for a full-service offering.
The new bank, expected to launch around mid-2026, will emphasize "white-glove" services for affluent clients, with advisors playing a central role. "The advisors are going to have a bank run by wealth for wealth," said a source familiar with the plans. "They are going to get paid very handsomely for banking activity." The source added that at most firms, banking is largely non-compensable, but UBS expects advisors to see this as a strong economic proposition.
UBS declined to comment on specific compensation details, but the industry typically rolls out new pay grids in the fall. The bank's strategy could also serve as a defensive move against rivals like JPMorgan Chase, which often pitch clients to consolidate investment accounts where they already bank. By offering competitive banking products—such as credit cards or mortgages—UBS aims to keep client assets in-house.
Advisors have historically been reluctant to sell banking products, preferring to focus on investments and financial planning, which generate revenue from client fees. However, UBS's new approach may change that calculus. "If I were starting a bank from scratch, I would heavily incentivize financial advisors to bring in client deposits and also for increasing credit lines and credit cards," said Lou Diamond, an industry recruiter. "The bank may be new, but UBS is already getting revenue from margin lending or securities-backed loans."
The announcement comes amid ongoing advisor attrition at UBS's Americas wealth unit. In the second quarter, the firm reported a 2.2% year-over-year decline in its advisor headcount, down 129 advisors to 5,644. This follows a controversial compensation change announced at the end of 2024 and retracted less than a year later, which may have contributed to the exodus.
Despite the attrition, UBS reported $900 million in net new asset inflows for its Americas wealth group in the second quarter, even after $10 billion in tax-related outflows. The stock market's near-record highs have helped offset some of the outflows, but the new bank could be a key retention tool.
The bank's launch also aligns with broader industry trends, as firms increasingly integrate banking and lending to deepen client relationships. For more on this, see why advisors should integrate banking and lending. UBS's move may also signal a shift in how wirehouses view banking as a revenue driver, potentially pressuring competitors to rethink their own compensation structures.
While the exact product focus remains unclear, the bank is expected to offer a range of services, from deposits to credit. UBS has already begun piloting banking for employees, as noted in this earlier report. The success of the new venture will depend on whether advisors embrace the change and whether the bank can deliver the high-touch experience UBS promises.
For now, the industry will watch closely as UBS rolls out its new pay grid and the bank's launch date approaches. The move could reshape how wirehouses compensate advisors and compete for wealthy clients' banking relationships.
