(18 May 2020 – China) UBS has announced plans to create a digital banking platform to serve China’s growing middle class if it can secure a digital banking license in the country.
The bank hopes its application for a nationwide, majority-owned digital bank licence will gain traction after June or July, once China lays down new framework digital banking guidelines.
Edmund Koh, UBS’ Asia Pacific head, revealed that acquiring a wealth management customer costs about US$25,000. They believe such expenses can be reduced significantly to as low as US$60 if they operate an all-digital bank.
Koh aims to expand UBS’ customer base from 30,000 currently in Asia to 200,000 in the next two years. After its launch in China, the new platform could also be exported to other markets with widely dispersed mass affluent populations and rational competition.
“Today’s affluent in China will be tomorrow’s high-net-worth individuals and then billionaires,” Koh said.