The news: UBS has secured a US national charter. Therefore, it may now offer full-service banking, including checking and savings accounts, supporting the bank’s expansion of its US wealth business.

Zoom out: UBS has used a Utah industrial loan company charter to issue credits cards and underwrite securities-based lending. But it was not able to offer day-to-day banking services to wealth management customers, which many large US competitors do.

Trendspotting: US banks have two tiers of services with which UBS banking services will compete directly:

• Tier 1 is private banking services at large, nationally chartered institutions, where personal checking and savings accounts are a small part of the services banks offer ultrahigh-net-worth clients. JPMorgan Chase, Bank of America, Citi, and U.S. Bank all offer private banking services, including specialty financing, wealth planning, investment advisory, and family office–style or other niche services.
• Tier 2 includes banking and advisory services for the affluent, which frequently overlap with the highest-status banking rewards tiers. UBS will compete with Bank of America Premier, Citigold Private Client, and JPMorgan Private Client. Those are offered to clients with more than $1 million in assets at the bank, the minimum amount for UBS to accept a US wealth management client.

Implications for banks: While retail banks compete intensely for mass-affluent customers, a battle is playing out on a higher plane to attract extremely wealthy consumers. At the wealth management entry point—where services are increasingly commoditized—banking services may be crucial to the relationship. At the private-bank tier, which touches several parts of clients’ lives, banking is fundamental to asset retention.