The Swiss-headquartered global bank launches its UBS Next portfolio.

UBS Group (SWX: UBSG) announced Tuesday a strategy to increase its interaction with the fintech industry, particularly digital ventures. UBS Next, its new venture arm, will invest US$ 200 million in direct equity investments into early-stage fintechs and other tech companies.

UBS has roped in Anthemis, a global venture capital firm with expertise in the fintech industry, “to accelerate deal flow origination” and widen access to fintech start-ups. (ThinkAdvisor)

Also, a dedicated tech venture investment team with “market-proven capital expertise” will manage UBS Next.

Fintechs’ expertise to drive UBS client satisfaction

This is a move to ensure that UBS remains at the forefront of financial technology. UBS already runs various internal technological initiatives, strategic partnerships, and tech collaborations. It also engages with its banking peers, start-ups, regulators, academia, and industry leaders.

Nevertheless, in the words of Mike Dargan, Head of Group Technology, the bank considers UBS Next as a logical and further step to enhance innovation and technical prowess for its client servicing.

UBS Next will help strengthen connections with the fintech ecosystem. It will also cement strategic relationships with key partners in the fintech industry.

Last but not least, there could be potential profits from successful portfolio investments. In May UBS published research that projected fintech industry revenues at $500 billion within ten years. That is more than three times the industry’s aggregate revenues in 2018.

The study suggested that growth would be driven by millennials and the advent of technologies such as blockchain and AI.

Strategic thrust

UBS Next will focus on cooperation on new digital tech, boosting new ideas like public cloud, microservices architecture, and artificial intelligence (AI), and finding “new and effective ways to engage with our clients and deliver our services.” It will devise new strategies to help implement “cutting-edge” technology, according to the release.

Sabine Keller-Busse, Group Chief Operating Officer and President UBS Europe, Middle East and Africa, said the bank intended to remain at the forefront of the digital movement to drive client experiences and operational excellence.

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