UBS is investing hundreds of millions of dollars of its own capital to introduce a venture capital fund that will back fintech projects.

The news was reported by Bloomberg, which revealed that the fund will cover three broad categories namely client engagement, investing and financing platforms, and improving its underlying operations.

UBS is weighing investments in the range of $10m-$20m in dozens of companies.

According to the report, the bank has already begun the process of screening potential investments.

However, it has not yet selected a team to manage the vehicle.

The bank will reportedly hold its investments for a minimum of five years.

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By GlobalData

UBS global head Group Technology Mike Dargan said: “UBS wants to further engage with and support fintech firms.

“The new venture investment portfolio is a next step to accelerate our innovation and digitisation efforts.”

UBS is keen on embracing more digital tools as an overhaul of its wealth business. The move is aimed at lowering expenses and cutting time on administrative work.

Notably, the bank eyes a licence in mainland China to launch its digital banking platform.

According to UBS Asia-Pacific head Edmund Koh, digital banking services could reduce the wealth management client acquisition cost of UBS to $60.