UBS\u2019 Iqbal Khan Rethinks How to Measure Success in WM<\/p>\n
UBS’ Iqbal Khan talked about rethinking how to measure success for the Swiss bank\u2019s wealth management business and considering net present value due to the heterogeneity of client needs.<\/p>\n
One of the standard measures of success for the wealth industry adopted by many analysts is to look at assets under management (AUM) and the fees made from them, similar to that of the fund industry. According to Iqbal Khan, UBS\u2019 global wealth management co-president, this may not be applicable for the Swiss bank\u2019s client base.<\/p>\n
\u00abThey are not wholesale clients. They are heterogeneous. Their needs are very different. Their goals, their situations are very different,\u00bb said Khan during the PWMA (Private Wealth Management Association) Wealth Management Summit 2025 in Hong Kong. \u00abWhy not look at net present value (NPV) of a relationship?<\/p>\n
Future Streams<\/p>\n
NPV is a method used to calculate the current value of a future stream of payments from a company, project, investment or, in the case of UBS, a relationship.<\/p>\n
Instead of using AUM, which assumes homogeneity amongst investors, Khan suggested that NPV may be a more appropriate tool for the business, as clients have not only varying investment needs but are also often seeking so-called \u00abone-bank\u00bb solutions that may involve revenues generated in collaboration with the investment bank or other parts of the financial group.<\/p>\n
Driver of Business<\/p>\n
This may especially be relevant in Asia, where Khan is the bank’s president, as many ultra-rich individuals still retain control of businesses, be it as a next-generation family owner or a first-generation entrepreneur.<\/p>\n
\u00abThat’s something that we’re going to be bringing to our KPI,\u00bb Khan shared, adding that the bank will also look to educate investors that NPV of a multi-generational relationship is a fundamental driver of the business.<\/p>\n","protected":false},"excerpt":{"rendered":"UBS\u2019 Iqbal Khan Rethinks How to Measure Success in WM UBS’ Iqbal Khan talked about rethinking how to…\n","protected":false},"author":2,"featured_media":123007,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,86072,111,139,69,244,245,10300,3505],"class_list":{"0":"post-123006","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-iqbal-khan","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nz","14":"tag-personal-finance","15":"tag-personalfinance","16":"tag-ubs","17":"tag-wealth-management"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/123006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=123006"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/123006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/123007"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=123006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=123006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=123006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}