UBS CEO: Blockchain’s Takeover of Traditional Banking Is Inevitable
- UBS CEO Sergio Ermotti said blockchain and traditional banking will converge, marking a stronger stance than his earlier comments on the technology.
- Blockchain could improve efficiency, reduce costs, and play a central role in the future structure of global banking.
- His comments echo similar warnings from Fidelity CEO Abigail Johnson, as major financial institutions increasingly align on blockchain’s role.
UBS Chief Executive Sergio Ermotti said blockchain technology will inevitably converge with traditional banking, marking a stronger endorsement of the technology from the head of the world’s largest wealth manager. Speaking at the World Economic Forum in Davos, Ermotti described blockchain as the future foundation of the banking industry.
“Blockchain is the future for traditional banking,” Ermotti said, adding that “you will see a convergence” between the two systems. His comments reflect a shift from earlier remarks in 2018, when he described blockchain as a competitive requirement rather than an unavoidable structural change.
UBS currently manages more than US$5 trillion (AU$7.55 trillion) in assets globally, giving weight to Ermotti’s assessment of where financial infrastructure is heading. He previously argued that blockchain could reduce operational costs, improve efficiency, and free up internal resources for banks under margin pressure.
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From Competitive Tool to Structural Change
Ermotti has also said blockchain could play a role in strengthening customer trust by improving how assets are recorded and managed within financial institutions. He has repeatedly compared the potential impact of blockchain on finance to the sweeping regulatory reforms introduced after the global financial crisis.
The UBS CEO’s comments echo those made by Fidelity Investments chief executive Abigail Johnson, who has criticised existing financial systems as being built on outdated and fragile technology. Johnson previously described traditional financial infrastructure as “the most complicated web of basically reconciliation processes built on primitive technology”.
Together, the remarks suggest that major financial institutions are increasingly aligned around the view that blockchain will replace legacy systems rather than simply complement them. Ermotti has said the industry has moved beyond debating relevance and is now focused on how to integrate blockchain safely and at scale.
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