Retail News CRM

Category: Finance

Retail News Asia is committed to providing both local and global retailers with the latest Finance news throughout the Asian market. This on a daily base.

  • UBS Launches New Tool for Wealthy US Clients

    UBS Launches New Tool for Wealthy US Clients

    UBS launches a new tool providing ultra-high-net-worth clients in the US with a consolidated real-time overview of their entire portfolio.

    A new wealth analysis and reporting platform in collaboration with IT companies Addepar and Mirador is the latest fintech offering from UBS. The new tool provides a streamlined, real-time summary of clients’ entire portfolios of various asset classes, Switzerland’s largest bank said in a statement.

    The tool also gives UBS financial advisors access to analytics enabling them to efficiently monitor their clients’ investment results, cash flows, and value. An added benefit is they will also be able to examine the outlook and risks in their client’s portfolios.

    In announcing the new offering John Mathews, head of private wealth management at UBS, said we recognize that our advisors need an intuitive, visual, and modern offering that will provide a complete picture of their clients’ full portfolio – from stocks and bonds to alternative investments and their private art collections.

    As part of Addepar’s partner ecosystem, Mirador’s financial data technology experts will support UBS’s advisors with data management, custom visualization, and tailored reporting, as well as operations and system maintenance.

    In October, UBS launched a new digital wealth management service platform to tap into the Chinese wealth management sector. The mobile app, WE.UBS offers financial planning built on Big Data and views from the bank’s chief investment office.

    In the US, however, the big bank backed out of buying digital wealth manager Wealthfront last September. Following the collapse of the deal, UBS said it would pursue an organic approach to bringing the next generation of wealth management clients into the UBS fold.

    We are back to our organic plans,» UBS Group chief financial officer (CFO) Sarah M Youngwood told an audience at the Barclays Global Financial Services Conference, according to a report on the advisorhub portal.

    Lees ook:

    Lees ook:

  • Bitcoin Suisse Partners With Lukka

    Bitcoin Suisse Partners With Lukka

    The Swiss crypto services provider will use the US crypto data specialist’s enterprise software to manage transaction data.

    Swiss crypto Bitcoin Suisse is partnering with US crypto software and data specialist Lukka to support its middle and back office operations and further improve its systems. Lukka’s data and software are designed specifically for crypto and blockchain data, providing Bitcoin Suisse and its institutional client’s wide-ranging asset coverage and flexible reporting, according to a media release Thursday.

    Bitcoin Suisse is focusing on institutional grading for its professional private and institutional clients to be at the forefront of the growing demand in this client segment, said CEO Dirk Klee. He added, this marks the beginning of an integrated technology partnership that strengthens institutional- crypto asset support in Switzerland’s Crypto Valley.

    Lees ook:

  • Dollar drops on black market

    Dollar drops on black market

    The U.S. dollar plunged on the black market Wednesday after data shows a decline of the greenback’s value globally as U.S. inflation seems to be cooling down.

    The dollar fell 0.48% from Monday to VND25,000 at unofficial exchange points. It has dropped 1.96% since the peak of VND25,500 last month.

    Vietcombank, Eximbank and several other lenders kept the exchange rate unchanged from Tuesday at VND24,860. The State Bank of Vietnam (SBV) also maintained its reference rate at VND23,677.

    The USD Index, which measures the greenback’s strength against major currencies, has fallen 5.3% since its peak in early September.

    Data last week had shown that U.S. inflation cooled more than expected in October, raising bets that the Fed could temper its tightening cycle after delivering four consecutive 75 basis point hike this year.

    Goldman Sachs said it expects a “significant” decline in U.S. inflation next year due to easing in supply chain constraints, a peak in shelter inflation and slower wage growth.

    Lees ook:

    Lees ook:

  • Google launches e-wallet service in Vietnam

    Google launches e-wallet service in Vietnam

    Google launched its e-wallets in Vietnam Tuesday, allowing people to use them with Visa credit and debit cards issued by certain banks.

    Google Wallet would allow Android users to add Visa credit and debit cards to their phones for payment, replacing physical cards. Supported banks are ACB, Sacombank, Shinhan Bank, TP Bank, Techcombank (credit card only), Vietcombank and VPBank.

    Mastercard cards would be integrated to the e-wallet in a few more weeks, Google said.

    Users would need to download the Google Wallet app from the Play Store and fill in necessary info.

    “With millions of Vietnamese now using their phones every day to make payments, Google is excited to bring Google Wallet to Vietnam,” a press release quoted Chen Way Siew, Google Wallet Partnerships Lead of Google Asia Pacific, saying,.

    “Google Wallet is easy to use as you don’t need to transfer money into the app. It acts as a digital container that holds digital versions of physical items found in an actual wallet, such as payment cards,” he added.

    An e-Conomy SEA 2022 report by Google said e-payments were getting more popular and would reach a total transaction value of $143 billion in Vietnam in 2025. According to Visa statistics, contactless transactions account for around 37% of all transactions in Vietnam.

    Lees ook:

  • No Last-Minute Savior in the Crypto Universe

    No Last-Minute Savior in the Crypto Universe

    The dramatic decline of the FTX crypto exchange has severely shaken investor confidence. For traditional financial institutions with crypto services, the debacle could represent an opportunity.

    A year ago today, the crypto scene was in a party mood. This time last year, the market capitalization of cryptocurrencies was at an all-time high of around $3 trillion, bolstered by bitcoin at just over $65,000. The golden age for digital assets had arrived. But what a difference a year makes.

    A year later, the jubilant mood has turned into caterwauling. Bitcoin has fallen by around 70 percent, and altcoins by even more in some cases. There is no longer any sign of enthusiasm and boundless optimism. Even the arrogance that some eccentric crypto celebrities displayed in the course of last year’s bull market evaporated. Evermore all-time records have been replaced by bankruptcies, scandals, losses, and layoffs now dominating the daily crypto news cycle. An ice age set in over the crypto landscape.

    Fallen Crypto Angel

    Investors who recently poured billions of dollars into promising and risky startups and protocols in hopes of historically high returns are in short supply these days. And one-time whiz kids like Sam Bankman-Fried aka «SBF,» the founder of crypto exchange FTX, are now fallen angels with tarnished halos. Representative of last year’s exuberance in the crypto industry is one of his statements to the «Financial Times,» even if it ultimately does not quite do justice to SBF’s inherently likable personality.

    At the time, the 30-year-old American said that a takeover of Goldman Sachs and CME Group was not «out of the question» if FTX beats the competition from Binance and Coinbase. How things have changed.

    His corporate empire collapsed at a staggering pace within the space of a few days after failing to find new backers. His tentative deal to sell his exchange to rival Binance and billionaire CEO Changpeng Zhao quickly fell through. In his hour of need, no savior appears to be on the horizon for the crypto icon. He and FTX rushed to the aid of industry neighbors such as Blockfi and Voyager Digital in this year’s crypto crash, albeit not entirely altruistically.

    No Savior in Sight

    It is not without a certain irony that SBF, of all people, has repeatedly spoken out in Washington in favor of stronger regulation of cryptocurrencies. Just a few months ago, he was warning some crypto exchanges were insolvent. One has to wonder if he had his own exchange in mind.

    Instead, he gambled with his trading firm Alameda Research, or more aptly, leveraged himself by running a hedge fund business and an exchange at the same time, backed by FTX’s own token FTT, which made up a large part of Alameda’s balance sheet.

    Classic Bank Run

    It dawned on investors at the start of the week that if the FTT token fell, so would Alameda’s value. As investors lost confidence, the run on the exchange began. A classic bank run. FTX faced a major liquidity shortage since there was no way to pay all those trying to withdraw all their money at once.

    The fly in the ointment for a crypto company like FTX is no lender of last resort is there to turn to when you desperately need money and have exhausted all other options.

    A lender of last resort provides liquidity to financial institutions that are experiencing financial difficulties. This can be the case in times of financial turmoil, when banks have doubts about lending to other banks and many people suddenly want to withdraw their money from their accounts. In most developing and developed countries, the lender of last resort is the country’s central bank. The central bank’s job is to prevent a bank run or panic due to a lack of liquidity from spreading to other banks.

    The Disservice of SBF

    Whatever happens next on the crypto scene, one thing is certain: regulators around the globe will work even more urgently on regulatory standards for the crypto industry. And that’s a good thing. Whether it’s a centralized exchange, a hedge fund, FTX, Alameda, or some combination, the most important thing is to restore investor confidence in digital assets.

    In retrospect, this is probably one of the biggest disservices SBF has done to its industry. Currently, many investors and market observers fear the start of a downward spiral in cryptocurrencies and more casualties, especially since FTX is at the center of the crypto world. Many large institutional investors have invested in the exchange. They now face big losses, which could jeopardize the future funding of the entire crypto ecosystem. At the same time, FTX and Alameda were major investors in the vast blockchain universe.

    A Flight to Quality?

    Unlike its main competitor Binance, FTX was primarily a crypto-derivative trading platform for institutions. But FTX’s precipitous and deep fall has now scared off banks, hedge funds, and asset managers who previously flirted with crypto firms due to counterparty risk.

    Traditional financial institutions like Goldman Sachs, on the other hand, which offer crypto services to their clients, may now find the FTX debacle playing into their hands. They could benefit from a flight to safety, so to speak. Because with or without FTX and Sam Bankman-Fried, the interest in digital assets remains.

    Lees ook:

    Lees ook:

  • US removes Vietnam from currency monitoring list

    US removes Vietnam from currency monitoring list

    Vietnam has been removed from the currency monitoring list by the U.S. Treasury Department.

    The U.S. Treasury Department remained satisfied with progress made by the Asian country in addressing U.S. concerns about its currency practices, it said in a semi-annual report Thursday.

    India, Italy, Mexico and Thailand were also removed from the list.

    It noted no major U.S. trading partner manipulated its exchange rates to gain unfair competitive advantage through June 2022, but said it would stay in close touch with Switzerland on its currency practices.

    Seven economies kept on the list were Japan, China, Germany, Malaysia, Singapore South Korea and Taiwan.

    The Treasury report again called out China for its failure to publish foreign exchange intervention and the broader lack of transparency around key features of its exchange-rate mechanism.

    A senior Treasury official said efforts by the U.S. Treasury and the International Monetary Fund had failed to make any headway with Beijing on the issue so far.

    Treasury noted that Japan had intervened in the foreign exchange market to stem the pace of depreciation in the yen, its first such move since 1998, and underscored its believe that such actions should be taken only rarely.

    “Treasury’s firm expectation is that in large, freely traded exchange markets, intervention should be reserved only for very exceptional circumstances with appropriate prior consultations,” it said.

    Lees ook:

  • UBP Reshuffles Asia Leadership

    UBP Reshuffles Asia Leadership

    UBP has reshuffled its top leadership in the region with new appointments to lead the North and South Asia business.

    UBP appoints Ivan Wong as its new regional head of North Asia and Hong Kong branch chief executive, according to an internal memo, effective November 14 and subject to regulatory approval.

    Wong is a 35-year wealth management veteran and most recently worked at HSBC Private Banking as its co-head of North Asia.

    Wong will replace the current North Asia head Eric Morin who will relocate to Singapore to become the bank’s regional head of Southeast Asia and the branch CEO for the city-state, subject to regulatory approval.

    Morin succeeds Ranjit Khanna who will step down after more than six years in the role. According to the memo, Khanna will assist with transitioning his responsibilities and UBP will also «work with him to explore new opportunities for him within the bank’s wider network».

    When contacted, a spokesperson for the bank confirmed the contents of the memo.

    Lees ook:

    Lees ook:

    Lees ook:

  • SCB holds meeting with An Dong bond buyers

    SCB holds meeting with An Dong bond buyers

    The Saigon Commercial Bank has held a meeting with investors who bought bonds from An Dong Investment Group, a company it endorsed but which has allegedly committed fraud.

    The meeting in Ho Chi Minh City Monday came on city authorities’ instructions. Many investors said at the meeting that SCB employees had persuaded them to buy the An Dong bonds with a lack of honesty.Some of them had withdrawn money at the bank when employees exhorted them to invest it in a “new type of product.”

    They never saw any papers that indicated they were buying bonds, and were merely told to sign a payment order. They received the bonds 10 days later.

    Hoang Minh Hoan, deputy standing director of SCB, said the bank never told its employees to be “dishonest” with customers. But the bank is concerned and would cooperate with Tan Viet Securities, the bond issuer, and government agencies to assist the customers, he said.

    Around 40,000 people bought An Dong bonds through SCB, according to Tan Viet Securities.

    Lees ook:

  • UBS Names New Member to Executive Board

    UBS Names New Member to Executive Board

    UBS names Damian Vogel to its executive board and becomes chief risk officer, replacing the current CRO who is stepping down to focus on academia and photography.

    Damian Vogel succeeds Christian Bluhm as chief risk officer at UBS and will join the executive board effective the beginning of May, according to a statement from UBS Tuesday. The two will work closely together to ensure a smooth transition, UBS went on to say.

    Vogel currently serves as chief risk officer for the global wealth management (GWM) business and joined UBS in 2010, having services in several risk-related leadership roles in GWM, personal and corporate banking, and the Swiss business.

    Generally, when such announcements of executive changes are made, there tends to be a comment about «spending more time with family» or something equally banal. In the case of Bluhm, he is stepping down to focus (no pun intended) on his photography business. In addition, he is looking into opportunities in academia.

    Bluhm was the Group’s CFO since 2016 and pushed the department to embrace advanced analytics, digitalization, and AI.

    The re-making of the twelve-member group executive board under CEO Ralph Hamers continues to progress. Sarah Youngwood was appointed chief financial officer in May and Barbara Levi chief legal officer last November.

    Appointed under Hamers’ predecessor Sergio Ermotti are investment bank chief Robert Karofsky, asset management head Suni Harford, GWM chief Iqbal Khan, compliance officer Markus Ronner and Asia Pacific head, Edmund Koh.

    Lees ook:

  • Why cryptocurrency is gaining popularity and how to get involved

    Why cryptocurrency is gaining popularity and how to get involved

    Cryptocurrency is a digital or virtual asset designed to work as a medium of exchange. It uses cryptography to secure and verify transactions as well as control the creation of new units of a particular cryptocurrency. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled. 

    Cryptocurrencies are decentralized – they are not subject to the control of government or financial institutions. Bitcoin, the first and most well-known cryptocurrency, was created in 2009 by an anonymous person or group known as Satoshi Nakamoto.

    Since then, numerous other cryptocurrencies have been created. These are frequently called altcoins, as a contraction of bitcoin alternatives. Altcoins include Litecoin, Bitcoin Cash, Ethereum and hundreds more. To get a crypto coin, you have to buy them from a broker. For example, if you want to buy cardano, you must first locate a good broker that is trusted then open an account with them. From there, you can easily get your coins using the payment method that fits you. 

    Cryptocurrency is stored in a digital wallet and can be used to purchase goods and services. Some people invest in cryptocurrency with the hope that it will appreciate in value (like investing in stocks, gold, real estate). But most people trade it like currency – buying low and selling high within a short timeframe, often within hours or even minutes.

    Cryptocurrency and its potential to take over traditional fiat currency

    Cryptocurrency has the potential to take over traditional fiat currency for a number of reasons. First, cryptocurrency is not subject to inflationary pressures like the fiat currency is. This means that cryptocurrency can maintain its purchasing power over time, whereas fiat currency will gradually lose value as more and more units are produced.

    Second, cryptocurrency is much more efficient to use than fiat currency. Transactions can be processed very quickly and at a very low cost using cryptocurrency. This is in contrast to fiat currency, which can take days or even weeks to process a transaction, and which often incurs high fees.

    Third, cryptocurrency is much more secure than fiat currency. Cryptocurrency transactions are verified and recorded on a public blockchain, which makes it very difficult for anyone to fraudulently alter or reverse a transaction. In contrast, fiat currency transactions are often processed through centralized intermediaries (such as banks) which are vulnerable to hacking and fraud.

    Fourth, cryptocurrency offers greater privacy than fiat currency. When you make a transaction with cryptocurrency, your personal information is not attached to the transaction like it would be with a credit card or bank transfer. This makes it much harder for someone to track your financial activity or steal your identity.

    For these reasons, cryptocurrency has the potential to eventually replace traditional fiat currency as the preferred medium of exchange worldwide.

    How cryptocurrency is becoming more mainstream

    Cryptocurrency is becoming more mainstream as a means of payment and investment. As a payment method, it offers a number of advantages over traditional methods such as credit cards or cash. For one, transactions made with cryptocurrency are generally faster and more efficient than those made with traditional methods. In addition, cryptocurrency is often less expensive to use than traditional methods, making it a more attractive option for businesses and individuals alike.

    As an investment, cryptocurrency offers a number of potential benefits. For one, the value of many cryptocurrencies has seen tremendous growth in recent years, meaning that investors who get in on the ground floor could see significant returns. 

    Additionally, cryptocurrency is often seen as a more volatile investment than traditional options such as stocks or bonds, meaning that there is the potential for greater short-term gains. Finally, because cryptocurrency is still relatively new and largely unregulated, there is a great deal of potential for future growth and development in the space.

    How to get started in investing in cryptocurrency

    There are a few things to keep in mind before investing in cryptocurrency. First, do your research and make sure you understand the risks involved. Cryptocurrency is a volatile, and prices can fluctuate wildly.

    Second, only invest what you can afford to lose. Cryptocurrency is a risky investment, and you should never invest more than you can afford to lose.

    Third, diversify your portfolio. Don’t put all your eggs in one basket, and don’t put all your money into one coin. Diversifying will help mitigate some of the risk involved in investing in cryptocurrency.

    Fourth, be patient. The cryptocurrency market can be very volatile, and it takes time to see real returns on your investment. Don’t expect to get rich quick with cryptocurrency; it’s a long-term investment.

    Finally, don’t forget to report any gains or losses on your taxes. Cryptocurrency is subject to capital gains tax, so make sure you keep track of your profits and losses so you can properly report them come tax time.

    What should I consider before investing in cryptocurrency?

    There are a few things you should consider before investing in cryptocurrency, such as:

    – How volatile the market is.

    – What is the potential for growth?

    – What are the risks?

    – How easy is it to buy and sell?

    – What fees are involved?

     

    Lees ook:

  • Gold prices hit 3-month high

    Gold prices hit 3-month high

    The Saigon Jewelry Company (SJC) hiked the price of gold by VND400,000 ($16.08) per tael to VND67.7 million Saturday morning.

    This is the biggest increase by the state-owned firm since the beginning of August. A tael equals 37.5 grams or 1.2 ounces.

    Jewelers sold gold rings for VND53.3 million per tael.

    After a lengthy period of fluctuating within a restricted range, the domestic gold price has risen on the momentum of an increase in the global market.

    The global gold price closed November 4 at US$1,682 an ounce, up $52 from the previous day.

    The increase in gold prices happened on hopes that the U.S. Federal Reserve (Fed) would delay the pace of interest rate hikes after a jobs report indicated American businesses had employed more workers, although the overall unemployment rate had risen.

    Domestic gold prices have risen by around VND700,000 per tael since the beginning of the month.

    However, the owner of a gold shop in HCMC’s District 8 said that demand has not increased because “gold is losing its appeal while banks’ deposit interest rates have continued to rise.”

    In contrast to gold, there are signs that the dollar’s surge is cooling down.

    State-owned Vietcombank sold the dollar at VND24,877 Sunday, down roughly VND5 from the beginning of the week.

    At the moment, Vietnam’s gold price per tael is around VND17.2 million dong greater than the global price.

    Lees ook:

    Lees ook:

    Lees ook:

  • BNP Paribas – The Bank That Does it Better

    BNP Paribas – The Bank That Does it Better

    France’s largest listed bank beat analysts’ expectations in the third quarter. Former Swiss National Bank President Philipp Hildebrand sees BNP as a role model. Also for Credit Suisse.

    BNP Paribas has been building its relationships with businesses across Europe in recent years, which is now starting to pay off, a look at Thursday’s quarterly results shows. France’s largest listed bank increased its net profit by 10.3 percent year-on-year to 2.76 billion euros ($2.69 billion), beating analysts’ forecasts.

    At a time when companies are hedging their operations against rising energy prices, BNP Paribas’ corporate and investment bank earnings were boosted in particular by income from commodity derivatives and interest rate trading.

    These activities helped to offset a decline in income from the capital markets business, which is not surprising as recession fears led companies to hold back on stock market listings while slowing the financing of acquisition deals.

    BNP Paribas shined in investment banking. Amid high, double-digit revenue declines at rival banks, BNP booked a third-quarter revenue decline of just 2 percent in global banking but gained market share.

    Nevertheless, the satisfying result does not immediately make BNP the top address in Europe, although there are signs that BNP is chipping market share away from Credit Suisse in equity and investment banking.

    BNP Paribas attributed its fixed income performance in the third quarter to reallocation and hedging needs in commodities, interest rates and foreign exchange products, and emerging markets. This may cause Credit Suisse to regret its decision to close its own emerging markets trading business.

    Last November, Credit Suisse agreed with the French bank to refer clients of its debacle Prime Services unit to them.

    With the results of BNP Paribas, former Swiss National Bank president Philipp Hildebrand likely sees himself vindicated in his statement recently saying Credit Suisse and other European banks need more clarity. He went on to praise BNP Paribas as the European bank with the right business model to attract investors.

    With that, perhaps BNP Paribas will hire Carly Simon to sing Nobody Does it Better at the next annual meeting to celebrate the results.

    Lees ook:

    Lees ook:

  • UBS Issues World’s First Publicly Traded Digital Bond

    UBS Issues World’s First Publicly Traded Digital Bond

    UBS launches the world’s first digital bond that can be traded on both blockchain-based and traditional exchanges. UBS is issuing a digital bond for the first time. With a volume of more than 375 million Swiss francs ($371 million), the security can be traded on both traditional exchanges and as a digital bond on the blockchain exchange SDX, the Swiss bank announced Thursday.

    The digital bond has the same structure, legal status, and rating as a traditional UBS unsubordinated unsecured bond, according to the statement. However, it is the first digital bond from a banking institution in the world to be listed, traded, and settled on a regulated digital exchange.

    Investors can invest in a digital bond regardless of whether they have blockchain infrastructure themselves, removing a hurdle on the way to introducing new disruptive technologies that can make bond issuance faster, more efficient, and easier, UBS said.

    SIX Group’s digital exchange SDX (SIX Digital Exchange) launched in the fall of last year after years of preliminary work. Its first product was a digital bond issued by SIX Group itself

    Since SDX digital investment products are traded and held via the house bank, investors hardly feel any difference compared to conventional products. Officials say the immediate advantage of SDX is primarily in the post-trade area, where trade settlement is instantaneous and without counterparty risk, thanks to so-called atomic swaps.

    With conventional exchanges such as SIX, it takes an average of two days before a trading transaction is settled with the transfer of the securities and the transfer of the purchase amount.

    Announcing the new security, Beatriz Martin, UBS Group Treasurer, said We are proud to leverage distributed ledger technology to launch the inaugural UBS digital bond. This shows our commitment to supporting the development of new financial market infrastructure. UBS is committed to using technology not just as an enabler, but to making it a true differentiator for UBS.

    Lees ook:

    Lees ook:

  • Most blue chips close in red

    Most blue chips close in red

    Vietnam’s benchmark VN-Index dropped 1.02% to 1023.19 points Wednesday, with two-thirds of blue chips falling.

    The index closed 10.56 points lower after gaining 5.81 points on Tuesday. Trading on the Ho Chi Minh Stock Exchange (HoSE) fell by 6% to VND10.10 trillion ($406.29 million). The VN-30 basket, comprising the 30 largest capped stocks, saw 22 tickers dropped.

    MSN of conglomerate Masan Group plunged 6.4%, followed by MWG of electronics retail chain Mobile World with a 4.2% decline.

    ACB of Asia Commercial Bank dropped 2.9%, and SSI of leading brokerage SSI Securities Corporation fell 2.7%. Other decliners included VNM of dairy giant Vinamilk, GVR of Vietnam Rubber Group and FPT of IT giant FPT Corporation.

    Five blue chips gained, including VIB of Vietnam International Commercial Bank, up 2.7%, and HPG of steelmaker Hoa Phat Group, up 2.3%.

    Foreign investors were net sellers to the tune of VND251.20 billion, mainly selling HPG and KBC of industrial real estate developer Kinh Bac City.

    The HNX-Index at the Hanoi Stock Exchange, where mid and small caps list, was down 0.33% while the UPCoM-Index at the Unlisted Public Companies Market was down by 0.63%.

    Lees ook:

    Lees ook:

  • At UBS A Machine Knows What Clients Want

    At UBS A Machine Knows What Clients Want

    UBS is launching one online service after another in Switzerland, with a system discreetly analyzing customer behavior in the background. Now, its digital efforts are themselves under scrutiny.

    New digital offerings every quarter is what Sabine Magri, chief operating officer (COO) of UBS’s Swiss business, promised in May when UBS launched its purely digital product line Key4. Since then, it has been rolling out new offerings in its home country. After pension and corporate client product launches, an investment solution went live this month.

    With UBS expanding its digital offerings to clients, their behavior is registered on the new channels as inputs for a system working behind the scenes. This approach analyzes customer behavior and turns it into recommendations. Advisors receive tailored suggestions as to which products they can offer their customers.

    Next Best Action» has been operating in UBS Switzerland’s wealth management business for about a year and is now being used in the retail business with private clients. In many cases, the tool is based on classic data analyses following simple rules not requiring a complex model. Nevertheless, it makes use of machine learning. The longer the system runs and the more data it can tap and make tailored recommendations.

    These opportunities are then brought to client advisors through the bank’s internal interface. For now, this is a thought exercise, which the bankers can use if they think it appropriate. Notably, recommendations do not appear on the customer’s smartphone app but take a detour via the advisors.

    In an environment where bank customers are generally reluctant to make transactions, the machine’s suggestions could soon gain influence. This means walking a tightrope not only for UBS but also for all other Swiss banks that specifically evaluate customer engagement.

    This is not only because the huge amounts of data have only just begun to be made usable for business. Unlike search engines and social media platforms, which use highly sophisticated algorithms to spy on user behavior and send out targeted advertising, banks are subject to special rules, both from a regulatory perspective and because of the special relationship of trust.

    Former UBS Chairman Axel Weber, warned in 2017 that customers should not feel like they are being spied on. Otherwise, there would be a rapid loss of trust.

    His successor Colm Kelleher is now having his say on the digital strategy. It was rumored he was the one who pushed for pulling the plug on the acquisition of American robo-advisor Wealthfront in September. Through Wealthfront, UBS CEO Ralph Hamers wanted to reach the mass of wealthy customers in the United States.

    That makes Switzerland all the more important as a test bench for the group’s digital transformation. Over the past nine months, UBS spent over 1.7 billion francs on operations, the lion’s share going toward upgrading technology. The bank cut back staff and real estate after closing 44 branches over the last year, another measure of the success of the digital transformation.

    It seems to be working. Over 74 percent of UBS clients in Switzerland were active on the bank’s digital channels at the end of September, with nearly 58 percent using smartphones. It is no coincidence the bank highlights these figures every quarter. The bank’s progress with digitalization plays a key role in its stock market valuation. Having a machine that knows what customers want could be decisive.

    Lees ook: