The Swiss banking group has agreed to collaborate with the India-based wealth management house, indicating a trend of international firms seeking to serve growing wealth in the emerging market economy.

UBS has entered into an exclusive strategic collaboration with Indian wealth manager 360 ONE WAM.

The pact combines UBS’s global and regional expertise with 360 ONE’s local knowledge and reach. UBS said the agreement represented a “significant advancement in UBS’s global Indian wealth management business.” 

The move by the Swiss bank to work alongside an Indian wealth manager highlights how India’s rapid growth, and expansion of its affluent/HNW middle class, is seen as an important market. A number of international firms have set up or expanded operations in the country in recent years, such as LGT, HSBC, Standard Chartered, DBS, and others.

As part of the collaboration, subject to regulatory requirements and approvals, it is proposed that clients from both institutions will have access to onshore and offshore wealth management solutions, UBS said in a statement yesterday.

UBS will transfer its onshore wealth management business in India to 360 ONE, while 360 ONE clients booked in Singapore will be served by UBS Singapore, subject to the required approvals (including regulatory) as applicable.

Potential collaborative opportunities for asset management products and investment banking services will also be explored, the Zurich-listed banking group continued.

UBS will acquire warrants for a 4.95 per cent stake in Mumbai-headquartered 360 ONE.

A joint committee led by senior leadership from both institutions will be set up to explore growth opportunities. 

“This is a first step towards a powerful collaboration, which will further enhance the value proposition and unlock synergies for our clients and employees, taking the UBS global Indian wealth management business to the next level,” UBS said. 

“360 ONE’s robust onshore presence combined with our international non-resident Indian (NRI) hubs enable us to bring the best of India to the rest of the world and the world to India,” Mihir Doshi, India country head, UBS, said.

Reports that UBS was considering a pact with a local Indian partner surfaced in September last year. See a previous story about 360 ONE.