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Switzerland-based UBS to apply for digital bank license in China

Monday 11 May 2020 14:33 CET | News

Switzerland-based UBS, a global investment bank, has confirmed plans to launch a digital banking platform, provided it secures license in mainland China.

UBS plans for its virtual bank application (for a countrywide, majority-owned digital bank license) to be approved, in order to incubate the initiative in China and then launch globally. UBS already has a banking model which includes a digital platform. However, UBS has not yet established such operations in Asia. 

Private banking has been a profitable sector of the financial services industry; however, cost-to-income ratios continue to remain relatively high (around 70-80%) as well. Digital banks aim to offer products and services without the requirement of operating physical branches. China represents an alternative to establish a digital banking platform, because of the nation’s expertise in artificial intelligence (AI). 

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Keywords: UBS, global investment bank, digital banking, virtual bank, universal banking model, private banking, digital banking platform, artificial intelligence, AI, Switzerland, Europe
Categories: Banking & Fintech | Online & Mobile Banking
Countries: China
This article is part of category

Banking & Fintech