UBS-Wealthfront Deal Falls Through: Setback for CEO Hamers

    Last Friday, UBS Group and Wealthfront informed that the transaction between them announced in January will not go through. This was a big setback to Ralph Hamers, the CEO of UBS Group, who had pushed to make the Swiss wealth Manager more digital by acquiring   WealthFront for $1.4 billion.

    Wealthfront is a Robo US advisor based in Palo Alto, California. The automated investment company was founded by Dan Carol and Andy Rachleff in 2008. Wealthfront last reported having $27 billion in Asset Under Management covering 470,000 accounts

    As per Bloomberg News, neither side gave any reason for the decision to call off the deal.

    The deal was supposed to be Hamers’ biggest achievement since he took over as CEO two years ago. His focus on buying Weal front was too broad-base the lender’s wealth management services from the traditional client base to the use of a digital platform. Around the same time, tech stocks’ valuations fell sharply in the last few months, bringing into question Abou UB overpaying for its entry into the US market.

    Michael Kunz, an analyst with the retail banking group Luzerner Kantonalbank  in the Swiss canton of Lucerne said that the deal call was a setback for the UBS group.

    UBS shares fell by 2.7% Monday in Zurich and are in line with a fall in Stoxx 600 Banks index.

    Asset Boost

    Wealthfront, a robot adviser, uses algorithms to manage clients’ money. The Zurich-based UBS group was looking forward to adding the huge AUM and customers in the US through this acquisition.

    Hamers insisted that the UBS bank should embrace the broad-based digital product if broad-based it meant lower profit margins, which was not the trademark of UBS retail offerings.

    With its $3 trillion+ asset under management, UBS was scouting for a digital technology that would have resulted in cost savings and more business from wealthy customers globally. The sluggish Asian market this year prompted the Swiss lender to focus on the US for new opportunities.

    The aborted deal with Wealthfront is among the many failed attempts of CEO Hamers in digital projects. Earlier, as Ing CEO,  Hamers acquired Payvision, a payments provider, but ING closed down the portfolio and phased it out completely after Hamers left the company. In 2016, Hamers introduced Yolt, a retail app for UK consumers, but that too was closed last year by ING.

    ING  also took a hit as impairment charges on a flagship project of Hamer, called  Maggie, just days after Hamer became  UBS  CEO.



    RELATED ARTICLES

    Wheon com

    Wheon Com: A Hub for Business Ideas and Growth Strategies

    In today’s fast-paced world of digital lightning, which is dominated by all sorts of stakeholders...
    Tampa

    Tampa’s Thriving Business Climate and Why It’s So Hot Right Now!

    Over the past decade, Tampa has undergone a quiet but powerful transformation. Once seen as...
    Minneapolis Property Management

    Minnesota Property Management Services

    If you’re in search of a reliable, efficient, and professional property management company in the...
    ecommerce marketing tactics

    Ecommerce Marketing Tactics: How the Trend is Changing in 2025

    The 2025 E-commerce industry is even more vibrant, cutthroat, and focused on consumers than just...
    Strategies to Improve Operational Efficiency with Business Consultants

    Strategies to Improve Operational Efficiency with Business Consultants

    Operational efficiency encompasses all activities that businesses perform to create products or services, directly impacting...
    Exploring Career Opportunities in the Evolving Energy

    Exploring Career Opportunities in the Evolving Energy Sector

    The energy industry is one of the most critical and dynamic sectors in the world....
    What is a Yoga Swing

    What is a Yoga Swing?

    A yoga swing is a fabric hammock or collection of straps that hold your body...
    healthy habits

    Healthy Habits For Your 20s: A Handbook for Long-Term Health

    Your 20s are a transformative decade, shaping your destiny, health, career, relationships, and overall well-being...
    how to make Studio Ghibli-style images

    How to Make Studio Ghibli-Style Images for Free: Learn Here 

    Studio Ghibli’s signature artwork fashion—lush backgrounds, whimsical characters, and problematic information—has captivated audiences for many...
    well health organic best ways to remove dark spots on face

    Well Health Organic Best Ways to Remove Dark Spots on Face: Natural Ways to Banish Dark Spots

    Well health organic best ways to remove dark spots on face"—that's what when you typed...
    wellhealthorganic.com : neem and aloe vera juice

    Wellhealthorganic.com : Neem Aloe Benefits – Learn The Hack and Thrive! 

    Wellhealthorganic.com : neem and aloe vera juice is a simple, natural mix that can really...