UBS AG aims to snatch a 10 percent market share in the nation's fast-growing wealth management market within the next seven to 10 years by offering tailor-made products to high-net-worth individuals, officials at the firm said yesterday.
The Swiss bank has only a small slice of the segment as the market is fragmented and most people still prefer to put their money in deposit accounts, underlying the strong potential for exploration of the sector, said Raoul Weil, the head of UBS' Wealth Management International, during a press briefing.
"Taiwan plays an important role in our wealth management development ? It is the third largest market in Asia by size," Weil said during his 12th visit to Taiwan.
The bank estimated that the nation's wealth management market size could top US$420 billion, trailing only Japan and China in Asia.
Last year, the bank saw the growth rate of its financial planning business in Taiwan, in terms of earnings and the assets it managed, surpass Asia's average of 30 percent. Weil declined to give detailed growth figures citing confidentiality.
The bank aims to expand its business outside the capital, where it has over 200 consultants, or one-tenth of the staff it has recruited in Asia.
UBS has applied to open new offices in Taichung and Kaohsiung and hopes to obtain the regulator's green light soon.
As part of its expansion strategy, the firm plans to expand its target customer base to those who enjoy assets of US$1 million and above in the next two to three years from its current upscale private banking operation that provides services only to ultra high-net-worth individuals with assets of more than US$10 million, said Dennis Chen (陳允懋), head of UBS Wealth Management Taiwan, earlier this year.
UBS will be faced with a strong challenge from its foreign peers, including Standard Chartered Bank, Citibank and ABN AMRO, which have acquired local lenders to strengthen their networks and develop their wealth management businesses.
Standard Chartered operates a total of 86 branches following its acquisition of Hsinchu International Bank (新竹國際商銀). Citibank's number of local outlets jumps to 66 after the takeover of the Bank of Overseas Chinese (華僑銀行).
ABN AMRO's branch network expands to 37 after the acquisition of the troubled Taitung Business Bank (台東企銀).
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