UBS Explores Wealth Management Partnerships to Compete in Indian Market

UBS Group AG is evaluating potential partnerships in India as it seeks to enhance its wealth management operations in a highly competitive environment. According to insiders, the Swiss bank has held preliminary discussions about acquiring a stake in a local firm to form a joint venture. While no decisions have been made, the move would help UBS grow its small presence in India by expanding its reach among the country’s wealthy. 

India’s rapid wealth creation has drawn global financial institutions, but these banks face fierce competition from established domestic players with large teams and extensive distribution networks. UBS, which exited India’s onshore wealth business a decade ago, has recently reentered the market by integrating Credit Suisse’s operations. However, the firm has faced challenges, including the loss of several senior executives to rival wealth managers. UBS’s wealth management team in India has shrunk from around 40 employees in April 2023 to just over 30, though hiring efforts continue. 

With Iqbal Khan, UBS’s co-head of global wealth management, relocating to Asia, strategic discussions regarding India’s business are gaining momentum. The bank may choose to pursue growth without a joint venture, as it has done in other parts of Asia, including Japan and China, where it holds majority stakes in local units.   

The discussions come as valuations for Indian wealth management firms soar, potentially affecting UBS’s appetite for acquisitions. India’s stock market boom has attracted significant private equity interest in wealth managers, with firms like Blackstone, Bain Capital, and PAG making major investments in recent years. Local banks and global institutions such as HSBC and Barclays are also scaling up their wealth management operations to serve the growing affluent class. 

India’s wealth is projected to increase by $730 billion by 2028, with the number of individuals holding at least $30 million in assets expected to rise by 50%, according to Knight Frank and Boston Consulting Group reports.