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UBS to launch fintech venture fund

UBS to launch fintech venture fund

UBS is building a fintech venture fund to invest hundreds of million of dollars in startups and later-stage firms capable of deepening client engagement, providing alternative financing platforms and improving the underlying operations of the bank.

The Swiss bank has already started screening prospects and is planning to make investments between $10 million and $20 million in dozens of companies, according to Bloomberg.

Citing “a person familiar with the matter,” the newswire says that the bank is considering holding its investments for at least five years.

The move comes as new CEO Ralf Hamers takes charge. Hamers built his reputation with ING, the Dutch bank which has been an active investor in the fintech space.

“UBS wants to further engage with and support fintech firms,” Mike Dargan, global head group technology at UBS, told Bloomberg. “The new venture investment portfolio is a next step to accelerate our innovation and digitization efforts.”

UBS last month released a research report which described the global fintech industry as reaching an "inflection point", with revenues set to grow from $150 billion in 2018 to $500 billion in 2030.

Comments: (1)

David Noyce
David Noyce - Opus Una - London 26 May, 2020, 13:34Be the first to give this comment the thumbs up 0 likes

Very positive move by UBS. Getting the right partnership model with Fintechs and successful integration with core businesses is key to banks unlocking massive potential over the next 5 years.