This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: UBS Buys Wealthfront for $1.4 Billion
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > UBS Buys Wealthfront for $1.4 Billion
Markets

UBS Buys Wealthfront for $1.4 Billion

Editorial Board Published January 26, 2022
Share
UBS Buys Wealthfront for .4 Billion
SHARE

UBS Group AG UBS 1.02% is buying online wealth adviser Wealthfront for $1.4 billion to reach the young rich and manage more money for people through their devices, the company said Wednesday.

UBS said it would pay cash for the digital platform, one in a clutch of startups whose assets have grown rapidly in an industry shift to automated advice. California-based Wealthfront has $27 billion under management for nearly half a million clients.

UBS Americas president Tom Naratil said the Wealthfront purchase further sets out UBS’s ambition to bring in more wealthy U.S. customers, especially millennial and Gen Z investors. 

“This could also be a feeder for our business in the future because some of these people will be the high net worth and ultrahigh net worth clients of the future,” Mr. Naratil said.

For many of them, digital advice, rather than an old-fashioned broker relationship, is the preferred option, he said.

Mr. Naratil said the bank has to consider whether it is “positioned properly, for those who don’t necessarily think the traditional financial adviser model is the right one for them.” UBS gets most of its wealth clients in the U.S. through a 6,000-strong army of financial advisers. Giving digital advice is cheaper, and should improve profit margins, UBS executives have said. 

Wealth managers and banks across the industry have invested heavily in digital tools to bring in younger clients who are reluctant to cede control of their finances to a traditional adviser. 

UBS Chief Executive Ralph Hamers said in October the U.S. market is a priority for the Swiss bank. The company bills itself as one of the world’s largest wealth managers, with $3.2 trillion in invested assets and access to more than half of the world’s billionaires.

Mr. Hamers joined UBS in 2020 from ING Groep NV, a pioneer in growing through online banking. 

Mr. Hamers has compared UBS’s ambitions to those of Netflix and Spotfiy in terms of engaging users and giving them relevant content. One engine of UBS’s wealth management business is a chief investment office providing streams of investment ideas to customers. 

Mr. Naratil said UBS has a chance now to learn from what has worked for Wealthfront, both in reaching audiences and developing user-friendly applications. Wealthfront users access its services via an app or online. It helps clients build automated portfolios and helps them plan for life events, such as sending a child to college. It uses algorithms to advise clients on tax-loss harvesting and direct indexing, among other investment strategies.

Write to Margot Patrick at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the January 27, 2022, print edition as ‘UBS Pays $1.4 Billion For Wealth Platform.’

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Bank of Canada Says Rate Increases Are Coming Bank of Canada Says Rate Increases Are Coming
Next Article Stocks Turn Lower After Fed Announcement on Rates Stocks Turn Lower After Fed Announcement on Rates

Editor's Pick

Nicki Minaj Calls Cardi B’s Daughter ‘Ugly’; Cardi Shoots Again That Nicki’s Son Is Nonverbal Because of Drug Use Throughout Being pregnant

Nicki Minaj Calls Cardi B’s Daughter ‘Ugly’; Cardi Shoots Again That Nicki’s Son Is Nonverbal Because of Drug Use Throughout Being pregnant

Studying Time: 3 minutes The Nicki Minaj vs. Cardi B beef has been occurring for years. Like, mainly for so…

By Editorial Board 4 Min Read
Maggie Baugh: Every part We Know About Keith City’s Rumored New Girlfriend
Maggie Baugh: Every part We Know About Keith City’s Rumored New Girlfriend

Studying Time: 3 minutes Is Keith City hooking up together with his…

4 Min Read
Map: See the place California FAIR Plan seeks house insurance coverage fee hikes
Map: See the place California FAIR Plan seeks house insurance coverage fee hikes

The FAIR Plan, California’s last-resort insurance coverage program for owners needing fireplace…

5 Min Read

Oponion

Wall Road banks race to win Trump admin’s favor for large Fannie Mae, Freddie Mac IPO deal

Wall Road banks race to win Trump admin’s favor for large Fannie Mae, Freddie Mac IPO deal

Sources inform FOX Enterprise’ Maria Bartiromo quite a lot of…

August 15, 2025

‘Are we for real?’ Unbeaten San Jose State seems to be to reply extra questions at Washington State

SAN JOSE — San Jose State’s…

September 19, 2024

Instacart President to Depart After Short Stint at Company

Instacart Inc. said its president, Carolyn…

December 10, 2021

Crypto Trading Platform Coinbase Blasts SEC Enforcement Efforts

WASHINGTON—Coinbase Global Inc. criticized the Securities…

July 21, 2022

An 11-year-old witness factors a finger at her father’s suspected killer: Her sister’s forbidden boyfriend

Sierra Friar, 18 years previous on…

April 18, 2025

You Might Also Like

Traders have fun Japan’s ‘Iron Lady’ election win
Markets

Traders have fun Japan’s ‘Iron Lady’ election win

Federated Hermes CIO Stephen Auth weighs in on Japan's first elected feminine prime minister and provides an concept on what…

3 Min Read
Tesla teases Tuesday announcement with social media movies
Markets

Tesla teases Tuesday announcement with social media movies

Niles Funding Administration founder and portfolio Dan Niles discusses Tesla’s potential $1 trillion compensation plan for Elon Musk on ‘The…

5 Min Read
Gold FOMO may push steel to ,000
Markets

Gold FOMO may push steel to $4,000

Pacer ETFs President Sean O’Hara discusses the advantages of ETFs and lays out his favourite investments on ‘The Claman Countdown.’…

3 Min Read
OpenAI turns into world’s most respected non-public firm with 0B valuation: report
Markets

OpenAI turns into world’s most respected non-public firm with $500B valuation: report

OpenAI CFO Sarah Friar joins Mornings with Maria to debate main investments from NVIDIA, SoftBank, and others, the U.S.–China AI…

5 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?