The UBS-Credit Suisse merger presents UBS with an opportunity to enter India's fast-growing wealth management space, driven by the increasing number of millionaires and billionaires in the country.
The merger aims to leverage the strengths and capabilities of both banks to provide a broader range of solutions to Indian clients, taking advantage of the rising affluent population and demand for professional wealth management services.
According to a McKinsey report, the affluent and mass affluent segments in Asia, including India, are projected to reach $4.7 trillion by 2026, creating significant growth potential.
UBS has appointed Credit Suisse's Mihir Doshi as its India head, indicating their plan to seamlessly integrate the two entities and expand their wealth management business.
The UBS-Credit Suisse merger establishes a new banking titan in global wealth management, overseeing $5 trillion in assets under management and becoming the world's largest wealth manager.
Credit Suisse India, with its banking license, operates in wealth management, investment banking, and brokerage services, but has experienced a decline in business over the last three years.
The merger is expected to solidify UBS' position as the leading Swiss-based global wealth manager and may trigger further consolidation among global private banks in the wealth management space.
Bigger private banks like ICICI Bank and Axis Bank, along with Citi's consumer banking acquisition, are positioning themselves to tap into the market, although the impact of the UBS-Credit Suisse merger on the wealth management industry remains to be seen.
The newly formed entity will focus on global wealth management, capitalizing on its current revenue drivers, and scaling down the investment banking segment, following a capital-light model.