UBS creating fin-tech exclusive venture fund

By Rahul Vaimal, Associate Editor
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Swiss investment banking giant, UBS Group is creating an exclusive venture capital fund for fintech projects. The venture fund will finance fintech projects in three broad classes – client engagement, investing and financing platforms, and startups improving underlying procedures of the bank.

UBS Group has already commenced the screening of possible businesses within the sector and is preparing to make investments between $10 million and $20 million in several organizations. The bank is expected to hold its investments for at least five years. The firm is still in the hiring process to develop its team accountable for managing its venture investments.

“UBS wants to further engage with and support fintech firms. The new venture investment portfolio is a next step to accelerate our innovation and digitization efforts.”
– Mike Dargan, CIO – UBS Group 

Though UBS is just beginning to get some stake in the fintech companies, its American rivals already have an extensive presence in the industry. Even Zurich-headquartered Credit Suisse is funding in fintech startups through its entrepreneur capital arm.

UBS is planning to tap the wealthy in the Chinese market and is in the process of obtaining a digital fund distribution license.