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UBS spending 1b Swiss francs on IT overhaul

UBS, a world’s biggest private bank, is spending around one billion Swiss francs to standardize a IT height opposite a flagship resources government business, an investment it hopes will eventually assistance reduce costs.

“This is about integrating a historically fragmented infrastructure that we have globally into one platform,” pronounced Dirk Klee, a Swiss bank’s arch handling officer for resources management.

“So we wish to have a same processes, a same approach of coming UBS and we also wish to lift synergies and scale in a behind office.”

UBS did not give an guess for a resources envisaged.

The plan to harmonize a IT structure began in 2013, with UBS aiming to have it finished by a finish of 2018.

A one IT structure would make it easier to hurl out digital facilities UBS is testing, Klee said, including a new online resources government platform, SmartWealth.

If a commander programme for SmartWealth in Britain, announced final week, was successful, UBS would hurl out a programme in other markets, he added.

They would embody vital markets in Europe and Asia-Pacific, where UBS has hubs in Singapore and Hong Kong.

UBS hopes SmartWealth will give it a scale to bank a supposed mass affluent, in further to some-more normal private banking customers like millionaires and billionaires.

For now a height would not embody a bank’s US business, that is run out of a apart Americas division, Klee said.

Since Sergio Ermotti became arch executive in 2011, UBS has slimmed down a investment bank – where increasing law has strike gain – to concentration on resources management. It managed US$1.7 trillion in resources in 2015, according to investigate organisation Scorpio Partnership.

Struggling to grow revenues amid disastrous seductiveness rates in Switzerland and calm customer activity, banks are underneath vigour to find savings.

Ermotti recently urged banking peers to work together to reduce costs, that could embody partnership in a behind office.

The bank already hopes to cut costs by hundreds of millions of dollars in resources government by a new organisational structure, and is targeting 2.1 billion francs in organisation net resources by a finish of subsequent year.

Since a financial crisis, banks have also looked to facilitate corporate structures that ballooned during a bang years, while scaling behind in areas where they are reduction competitive.