• To prevent client exodus, UBS is considering offering investment opportunities in the digital assets space.
• Ralph Hamers, the new CEO of UBS, has been tasked to ax high costs and increase UBS’ revenue.
• UBS may offer digital asset investment opportunities through third-party investment vehicles.

The Swiss banking behemoth UBS is reportedly considering offering investment opportunities in the digital assets space. However, as per a report published by BNN Bloomberg, UBS will only provide an investment opportunity to a small segment of its user base, considering the infamous volatility of the crypto market.

The sources with knowledge about UBS offering investment opportunities in cryptocurrencies said that a third-party investment vehicle is one of the ways that UBS is likely to explore first. That being said, none of the sources agreed to disclose their identity as UBS has not yet finalized the offering. It is still in the early stages.

Is Ralph Hamers, the new CEO of UBS, Behind the Decision?

The new UBS CEO Ralph Hamers took the helm of UBS in 2020, replacing Sergio Ermotti. He is known for being a strong proponent of automation and digitization.

Ralph’s previous stint with ING Group was a mixed bag as far as his performance goes. He was the CEO of ING Group from 2013 to 2020. Ralph received accolades for his drive to modernize ING Group leading to considerable improvements in the company’s profits.

At the same time, many were critical of Ralph’s role as under his tenure ING Group was blamed for allowing money laundering worth millions of Euros between 2010 and 2016. It had led to an imposition of a penalty worth €775 million on ING Group by the Netherlands’ public prosecution service.

A big Task at Hand

At UBS, Ralph has been tasked to bring their rising costs in control and improve the company’s revenue. To accomplish his mission, Ralph has stressed the importance of offering a multitude of digital services to meet the needs of their clients.

Being a staunch critic of the loose monetary policy of central banks, Hamers has initiated a change in UBS’ strategy of fixed funding on an annual basis. Instead, under his leadership, UBS has now moved to quarterly allocation to technology projects.

Ralph has been vocal about implementing artificial intelligence technology. He believes that AI will enable UBS to understand the needs of its clientele better. As a result, he is actively digitizing platforms and services at UBS.

As many leading names in the investment banking space like BNY Mellon, Morgan Stanley, and Goldman Sachs have increased their involvement in the digital asset space, UBS is reportedly concerned about losing clients. UBS believes that offering digital assets investment opportunities will help them retain their clients.