What the collapsed $1.4 billion Wealthfront deal means for UBS

UBS adjusts its expansion strategy after calling off its planned merger

UBS adjusts its expansion strategy after calling off its planned merger UBS shared that it will be terminating its $1.4 billion merger with Wealthfront, which the company announced back in January 2022. The tie-up would have helped the Swiss bank expand across the US and offset the impact of economic uncertainty in Europe. In addition, UBS could have leveraged Wealthfront's automated investment services to gain access to more millennial and Gen Z consumers, who make up a large proportion of wealth management clients. "Lower tech valuations and worsening forecasts may have led to fears at UBS that its agreed-upon $1.4 billion price tag for Wealthfront was too high," said Will Paige, analyst at Insider Intelligence. "If so, UBS may believe expansion into the US and wealth management can be done more cost-effectively." That said, now that the deal has been abandoned, UBS must find new ways to grow its digital technology and omnichannel experiences. What's more, as baby boomers hand over an estimated $30 trillion to $68 trillion to millennial and Gen Z consumers, UBS will have to think of alternative approaches to attract younger audiences. Subscribe to gain exclusive analysis and insights Related articles Robinhood's troubles continue as disappointing Q2 prompts layoff of nearly a quarter of staff View Article Citi joins Project REACh to boost financial inclusion amid recession worries View Article Expert analysis to make confident business decisions Find out why more than 100,000 corporate subscribers worldwide trust our unbiased approach to make grounded decisions about the future of their business. Become a Client Email sent to: nguyenvu1187.love5@blogger.com Manage your email preferences  |  Unsubscribe  |  Terms of Service  |  Privacy Policy © 2022 Insider Intelligence, 11 Times Square, New York, NY 10036