What Does UBS Do and Its History Explained

UBS is a Swiss multinational investment bank and financial services company that has a rich history dating back to 1862 when it was founded by a group of businessmen in Zurich, Switzerland.

The company started as a bank for the Swiss Confederation and quickly grew to become one of the largest banks in Switzerland.

UBS has a long history of innovation, introducing the first Swiss banknote in 1907 and the first Swiss savings account in 1913.

The bank has undergone significant changes over the years, including a major restructuring in 1998 that led to the creation of UBS Group AG.

UBS is a global financial services company that offers a range of services, including wealth management, investment banking, and asset management. They have a presence in over 50 countries worldwide.

Their wealth management division provides personalized financial advice to high net worth individuals and families, helping them achieve their financial goals. UBS also offers a range of investment products, such as stocks, bonds, and mutual funds, to help clients grow their wealth.

UBS has a strong presence in the financial markets, with a global network of offices and a team of experienced professionals who help clients navigate the complexities of the financial world.

UBS is a retail bank that offers a range of financial services to individual consumers, including savings and checking accounts, mortgages, and personal loans.

They also provide debit and credit cards, as well as certificates of deposit (CDs). UBS focuses on serving the individual consumer.

As a global wealth manager, UBS combines its expertise with local knowledge to provide financial services to customers worldwide. They have a presence in all major financial centers globally.

UBS is supported by the financial stability of one of the best-capitalized banks, which gives customers peace of mind.

UBS stands for Union Bank of Switzerland, which was formed after the merger of Union Bank and Swiss Bank.

The name UBS is represented in different languages: "Union de Banques Suisses" in French, "Unione di Banche Svizzere" in Italian, and "Schweizerische Bankgesellschaft" in German.

UBS has a rich history that dates back to 1862, when it was founded by a group of Swiss bankers in Zurich.

The bank's early success was fueled by its focus on providing high-quality financial services to its clients. UBS expanded rapidly, opening branches in various European cities and establishing itself as a major player in the global financial industry.

By the early 20th century, UBS had become one of the largest banks in Switzerland, with a strong presence in the country's financial markets.

The merger of Union Bank of Switzerland and Swiss Bank Corporation in 1998 was a significant event in the history of banking. On December 8, 1997, the two banks announced an all-stock merger.

The resulting UBS AG had total assets of more than US$590 billion, making it the largest bank of its kind. This massive merger created a new bank with unparalleled resources.

UBS chairman Marcel Ospel wanted to call the company "United Bank of Switzerland", but settled on simply using "UBS" after acquiring American brokerage firm Paine Webber. The combined bank became the second largest in the world at the time.

Union Bank of Switzerland's Mathis Cabiallavetta became chairman of the new bank, while Swiss Bank's Marcel Ospel was named chief executive officer. Nearly 80% of the top management positions were filled by legacy Swiss Bank professionals.

The merger pulled together the banks' various asset management businesses to create the world's largest money manager, with approximately US$910 billion in assets under management.

Paine Webber International Expansion 2000-2006 was a period of significant growth for the company. They expanded their operations to over 100 countries worldwide.

In 2000, Paine Webber acquired a majority stake in a Japanese securities firm, marking their entry into the Asian market. This move was a strategic one, allowing the company to tap into the rapidly growing Japanese economy.

Their international expansion continued with the opening of offices in Brazil and China in 2002. This expansion into emerging markets helped Paine Webber to diversify its client base and increase its revenue streams.

By 2006, Paine Webber had established a strong presence in the global financial markets, with operations in over 100 countries and a client base that spanned the globe.

In January 2010, UBS issued a new code of conduct and business ethics that all employees were encouraged to sign. This eight-page code addressed issues such as financial crime, competition, confidentiality, human rights, and environmental concerns.

The code also laid out potential sanctions against employees who violate it, including warnings, demotions, or dismissal. Kaspar Villiger, former chairman of the board, and Oswald J. Grübel, former Group CEO, considered the code an integral part of changing the way UBS conducts business.

In 2011, UBS expanded its global compliance database to include information on environmental and social issues provided by RepRisk, a global research firm specializing in ESG risk analytics and metrics. This move aimed to mitigate environmental and social risks that could impact the bank's reputation or financial performance.

RepRisk data is used in the on-boarding process to screen potential new clients and sourcing partners, alongside periodic client reviews. It also helps evaluate the risks related to transactions in investment banking and institutional lending.

UBS joined the UN's Global Investors for Sustainable Development Alliance (GISD) in October 2019. As part of this commitment, UBS aims to raise US$5 billion in SDG-related impact investments by the end of 2021.

As UBS shifts its focus, it's clear that the bank is prioritizing digital transformation.

UBS has invested heavily in its digital platform, with a goal of making it the best in the industry.

The bank has set aside a significant amount of money to fund this transformation, with a focus on improving the customer experience.

In 2020, UBS announced a major investment in its digital platform, with a budget of over $1 billion.

This shift in focus is a response to changing customer behavior, with more people turning to digital channels for their banking needs.

According to a UBS survey, 70% of customers prefer to use digital channels for routine banking tasks.

By investing in digital transformation, UBS aims to stay ahead of the competition and maintain its position as a leading global bank.

The bank's commitment to digital transformation is a key part of its strategy to drive growth and innovation.

UBS Wealth Management provides a range of financial planning services for individuals and businesses, including portfolio management, market research, retirement planning, and educational planning.

They offer tailored solutions to meet the needs of high net worth and ultra-high net worth individuals, with financial advisors specializing in services such as investment management, income tax preparation, or estate planning.

As of 2018, UBS manages the largest amount of private wealth in the world, with over 23,600 employees worldwide and a presence in more than 40 countries with approximately 190 offices.

Their services include brokerage, asset management, and other investment advisory and portfolio management products and services, as well as a broad range of securities and savings products supported by the firm's underwriting and research activities.

UBS has several major divisions, offering products and services to numerous clients. These divisions include wealth management, asset management, investment banking, and retail banking.

The retail banking division, also known as Personal & Corporate Banking, delivers financial products and services to retail, corporate, and institutional clients in Switzerland. It serves one in three pension funds and more than 85% of the 1,000 largest Swiss corporations.

UBS's retail banking division offers a wide range of products, including cash accounts, payments, savings, and retirement plans. It also provides investment fund products, residential mortgages, and advisory services.

As of 31 December 2018, the lending portfolio of UBS's retail banking division reached US$131 billion, which is equivalent to approximately $157 billion in 2023. This division constitutes a central building block of UBS's universal bank delivery model in Switzerland.

UBS's retail banking division has a large distribution network, with 279 branches in Switzerland, 1,250 teller machines, and self-service terminals. It also offers digital banking services, serving 2.5 million personal banking clients.

Wealth management is another major division of UBS, which helps clients achieve their financial goals. This division benefits from the expertise of the best bank for wealth management, addressing all dimensions of a client's wealth.

We offer a range of financial planning services for individuals and businesses, including portfolio management, market research, retirement planning, and educational planning.

Our financial advisors work with clients to understand the breadth of their financial and other assets and develop tailored solutions to meet their needs.

We provide a broad range of securities and savings products, supported by our underwriting and research activities, as well as clients' orders management and execution, and clearing services for transactions originated by individual investors.

As of the end of 2018, we employed around 23,600 people worldwide, with a presence in more than 40 countries and approximately 190 offices, 100 of which are in Switzerland.

We address all dimensions of your wealth, including wealth management advice for ultra-high net worth and high net worth clients, as well as cash management and commercial banking services for small businesses and corporate clients.

Our asset management division aims to deliver superior investment performance and client service, managing collective investments such as pension funds, in addition to overseeing individual assets.

We have the expertise to help you achieve your financial goals, with a focus on understanding what really matters to you.

Hidden assets are a real thing, and they're not as hidden as you might think. UBS and other Swiss banks use them to preserve anonymity and confidentiality.

These hidden accounts, also known as numbered bank accounts, limit the knowledge of who the account belongs to to just the client and a few private bankers.

In January 1997, a night guard at the Union Bank of Switzerland, Christoph Meili, blew the whistle on bank officials destroying documents about orphaned assets.

The Swiss government has taken steps to curb the use of hidden services for foreign account holders, as they've been used to transfer "black money".

In May 2013, Switzerland announced it would amend banking secrecy laws to allow disclosure of hidden client accounts to investigative authorities. However, this disclosure is heavily regulated and only occurs with a valid double taxation agreement.

Competition is a key aspect of UBS's business model. The bank competes with other major financial institutions such as Goldman Sachs and JPMorgan Chase.

UBS's wealth management division competes with other major players in the industry, including Credit Suisse and Deutsche Bank.

To stay ahead, UBS invests in digital transformation, leveraging technology to improve client experiences and streamline operations. The bank's focus on innovation helps it to better serve its clients and stay competitive.

UBS's asset management division faces stiff competition from other asset managers, including BlackRock and Vanguard. Despite this, UBS has a strong track record of delivering returns to its clients.