UBS is to invest $200 million in fintech startups through a new venture fund that will underpin internal modernisation efforts and strengthen strategic partnerships.
UBS Next will primarily pursues direct investments into early stage fintechs and other relevant tech companies. In addition, the bank has also entered a partnership with Anthemis to help identify up-and-coming fintech startups and boost deal flow.
Mike Dargan, head of group technology, comments: "UBS Next is a further step to accelerate our innovation efforts as well as to identify and apply the latest technology for our client businesses. With our investments through close collaboration with Anthemis, we widen our access to fintech start-ups."
Dargan believes UBS Next will boost the bank's engagement with the startup ecosystem, and put it at the forefront of new technological breakthroughs in public cloud, microservices architecture, and AI
Sabine Keller-Busse, group COO and president UBS Europe, Middle East and Africa, says: “Connecting to fintechs and tech start-ups through our innovation labs, digital factories, future of finance initiatives as well as project collaborations has always been key to remaining at the forefront of the digital movement to drive client experiences and operational excellence.”
The bank is also looking at the upside potential from its equity investment. A recent report from the UBS research team depicted the global fintech industry as at an inflection point, with revenues set to grow from $150 billion in 2018 to $500 billion in 2030.
Keller-Busse says UBS Next will be funded exclusively by UBS and will be managed by a dedicated tech venture investment team with market-proven capital expertise.