UBS Makes Big Move to Tap Critical Changes in HNW Market
Minorities are set to become the driving force for growth in the U.S. as the white population begins to decline — and Swiss-based UBS plans to tap into these demographic changes by bringing on a more diverse force of financial advisors, according to the company.
By 2045, Caucasians in the U.S. will become a minority: their proportion of the nation’s population will fall to 49.7% that year, according to the Brookings Institution, ThinkAdvisor writes.
Anticipating this change, UBS has placed its focus on African-Americans, Hispanics, Asian-Americans and women of all races as their future clientele, and wants to hire advisors representing these segments to reach them, Kenneth Correa, metropolitan market head and co-chair of the firm’s MOSAIC diversity network, tells ThinkAdvisor.
“Diversity is a fact; inclusion is a choice. All the firms are going to be challenged with: How do we make sure the look of the firms continue to shift with U.S. demographics? We’ve made a choice — and our choice is to continue to have our firm look more and more like the demographics of the country,” he tells the publication.
The MOSAIC effort aims to prepare the firm for the future in which more and more women and minorities will become the high net worth market, but UBS is still focused on that niche as it is now, according to Correa, ThinkAdvisor writes.
Correa also tells the publication his two decades in the industry have shown him that people relate better to others like them, according to the publication.
“So if you’re Hispanic and speak Spanish, you’ll be able to have a greater connection with [a Spanish-speaking FA],” he tells ThinkAdvisor.