Spotlight On: Catherine Lapadula, Managing Director, Market Executive, UBS Florida International
October 2024 – In an interview with Invest:, Catherine Lapadula, managing director at UBS Florida International, highlighted Miami’s strategic importance as a hub for international wealth migration from Latin America. She also discussed the significant shift in wealth transfer, with $9 trillion expected to move largely between spouses, emphasizing the growing influence of women in wealth management.
Why do you think now is the ideal time for UBS to expand in Miami?
It’s an exciting time to be in Miami. I moved here a year and a half ago after 18 years in New York with UBS, and I believe the timing for expansion is perfect.
UBS is focused on international wealth management, and Miami has long been a key hub for wealth migration from Latin America. Florida attracts wealthy individuals from countries like Argentina, Colombia, Mexico, and Brazil, often due to economic instability or political unrest at home. Miami offers them stability, favorable tax conditions, and real estate opportunities — (though buying a house is challenging given the current market).
Miami’s proximity to Latin America and its diverse talent pool are critical as wealth management evolves. We aim to reflect the diversity of our clients, and Miami aligns with our global focus.
Beyond Latin American migration, Miami is seeing significant internal U.S. migration. Post-COVID, the flow of money has accelerated, driven by favorable tax policies, remote work, and quality of life. The tech scene here is thriving, with fintech and blockchain attracting major players like SoftBank and startups.
We’re also seeing major firms relocate — Carl Icahn moved his headquarters here in 2020, followed by Citadel in 2022. Companies like Blackstone, Apple, and Google have expanded, and Coral Gables now rivals Beverly Hills in income per capita.
These factors make Miami a prime location for UBS. We’re well-positioned to capture this wealth migration, helping clients with both personal and business finances.
How do you see wealth management changing in the coming years?
There’s a significant shift we call the “horizontal wealth transfer.” Traditionally, wealth has passed from parents to children, but over the next 10 to 20 years, around $9 trillion is expected to transfer between spouses and partners, particularly from men to women, as women tend to live longer.
This shift will impact wealth management, real estate, luxury spending, and investing — areas historically dominated by men. Our chief economist, Paul Donovan, refers to this as the “feminization of wealth.” As women inherit more and their income rises, they are becoming a larger share of high-net-worth investors and consumers. Women are also leading trends in sustainable investing and philanthropy — just look at Melinda French Gates and MacKenzie Scott, who have donated billions in recent years.
UBS is focused on this trend. We’re ensuring we’re equipped to manage family legacies and inheritance planning, especially for women as the next generation of wealth holders. This shift offers a unique opportunity for the industry to better serve this evolving demographic.
How is UBS positioning itself in the southern U.S.?
UBS has restructured to prioritize growth in the southern U.S., including Florida, Texas, and Atlanta, while maintaining our presence in traditional hubs like New York. Migration trends into Florida are significantly boosting the economy, and UBS is channeling resources to meet this demand.
In our market, FL International Wealth Management, we have offices in Uruguay, Miami, and Coral Gables. We’ve consolidated these offices into one market to better serve our diverse client base. We want our advisors to reflect the people we serve, and Miami offers the ideal talent pool for that.
Our goal isn’t necessary to be the biggest wealth manager; we just want to be the best. Miami is the perfect place to continue building that vision.
What challenges do you see Miami facing as it continues to grow?
Miami has experienced a real estate boom, pricing out many people, especially the younger generation. Rents are high, and homeownership has become unattainable for many. This housing strain, combined with rapid population growth, has put pressure on transportation, healthcare, and public services. Traffic is a common complaint, but the real issue is the need for infrastructure upgrades, particularly in public transport and healthcare.
Education is another challenge. We have excellent schools, but demand far exceeds supply, making it difficult for families to enroll their children. As more businesses move here, the pressure on the education system will increase. To attract top talent, Miami needs infrastructure that supports families, and that includes expanding both public and private education options.
How is UBS working to integrate more into the Miami community?
We’re actively working to become part of Miami’s fabric, collaborating with institutions like the University of Miami, supporting local organizations such as Best Buddies, Camillus House, and Easterseals. For UBS, it’s about more than just business; we want to be responsible corporate citizens and give back to the community in meaningful ways.
What specific initiatives does UBS have in place to support women as they inherit and manage wealth?
We are closely focused on the $9 trillion wealth transfer expected to go to women in the coming years. Women tend to be more risk-averse than men and often switch financial advisors after inheriting wealth. Many are uncertain about long-term planning, which is concerning since women generally outlive their spouses and need to have a solid financial plan.
During COVID, this trend accelerated as men, especially older men, passed away at higher rates, putting a spotlight on the importance of focusing on women in wealth management. UBS has developed initiatives like workshops, women’s magazines, and resources to help women “own their worth.” We provide tools for women to navigate different life stages, whether they’re starting a job, retiring, or managing finances after widowhood.
As the wealth landscape changes, wealth management firms must adapt. The one-size-fits-all approach is no longer viable. At UBS, we tailor our services to the unique needs of our clients, particularly as women play a larger role in managing wealth. Firms that don’t evolve with these shifts risk being left behind.
How is UBS incorporating new technologies like fintech, data analytics, and AI into its wealth management strategies?
At UBS, we have a department called STAAT INSIGHT that focuses on client analytics. While these tools don’t replace financial advisors — since wealth management is fundamentally about relationships — they enhance our ability to serve clients. Trust and one-on-one relationships remain central, but data and analytics help identify trends and suggest products that meet evolving client needs.
For instance, analytics allow us to track demographic changes, such as the growing segment of female investors. Numbers don’t lie, and they help us anticipate market shifts and adjust our strategies. We can also pinpoint potential growth areas, like a specific country outperforming another, which helps us refine our focus.
That said, the human element remains crucial. Clients still want someone who knows them and their families, but tools like AI and analytics make our services more personalized and responsive.
We’re also seeing a generational shift in how clients engage with their finances, and UBS is adapting by developing apps and digital tools, particularly for younger clients who prefer managing everything via mobile devices.
Additionally, with the global economy becoming more interconnected, clients seek opportunities beyond traditional stocks and bonds. Whether it’s private equity in healthcare in Peru or telecom in Brazil, UBS’s global reach allows us to provide these niche investment options.
How do you see the global wealth management industry evolving, particularly in the markets UBS serves?
International wealth management is a dynamic and highly regulated business. It requires full dedication. Each country constantly introduces new cross-border rules, and firms need to keep up with these changes to remain compliant. At UBS, we are fully committed to this space as the largest offshore wealth manager in the world.
I believe firms will either go all-in on international wealth management or exit the space entirely. For UBS, it’s a core part of our business and represents a large share of our earnings. We’re also focused on increasing diversity and hiring talent to meet the evolving needs of clients, particularly in growing sectors such as tech in Miami.
We need to cater to the next generation of wealth creators, they may want very different services than legacy clients, They might prioritize venture capital or investment banking services over traditional products. It’s about having the right products, regulatory framework, and people to meet these evolving needs. I believe The UBS FL International market is uniquely well positioned for this!
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