The Bank of New York Mellon (BK) 2025 Conference Transcript

Summary of The Bank of New York Mellon (BK) 2025 Conference Company Overview - Company: The Bank of New York Mellon (BK) - Segment: BNY Pershing, the largest business within BNY, focusing on Market and Wealth Services - Key Metrics: - Serves approximately 1,300 intermediaries globally - Manages around 8 million client accounts - Total assets under management: $2.7 trillion for Pershing and $3 trillion for BNY globally [15][14] Core Strategic Priorities - Growth Focus: The primary strategic priority is growth, with an emphasis on positive operating margins [15][16] - Client Engagement: BNY aims to differentiate itself by offering a variety of solutions within its ecosystem to help clients grow [16][17] Key Themes from Insight Financial Advisory Conference - Event Overview: The conference had over 2,000 attendees and showcased a broader product set from BNY, including asset servicing, investment management, and treasury services [18][19][21] - Client-Centric Approach: The event aimed to demonstrate how BNY can better serve wealth managers by introducing more services [22][23] WOVE Platform - Launch and Purpose: WOVE was launched to address advisor productivity challenges, with 60% of advisors frustrated by their current technology [24][25] - Revenue Generation: In 2024, WOVE generated an incremental $30 million in revenues, with a target of $60 million to $70 million for 2025 [28][30] - Modular Design: The platform is designed to be modular, allowing advisors to select specific applications as needed [26][27] AI Integration - AI Adoption: Approximately 90% of BNY employees have signed up for the internal AI platform, Eliza, which enhances operational efficiency [40][41] - Commercial Applications: AI is being used to streamline processes such as responding to RFPs and enhancing financial planning tools [42][43] - Future Potential: AI is expected to play a significant role in transforming client interactions and operational efficiency [46][48] Industry Dynamics - RIA Consolidation: The larger RIA firms are growing faster than smaller firms, with 20% of RIAs driving 80% of the growth [59][60] - Target Clientele: BNY focuses on billion-dollar-plus RIA firms, which are seen as optimal clients for their services [60][72] - Breakaway Business: The breakaway business model is expected to continue, providing opportunities for BNY to capture new clients [62][63] Product Expansion and Alternatives - Focus on Alternatives: BNY is working to improve custodial processes for private assets and alternatives, as demand in this area is increasing [73][75] - Tokenized Assets: BNY is prepared to custody tokenized assets, anticipating future demand in this area [80][81] Conclusion - Positive Outlook: The consolidation in the RIA market and the focus on large firms positions BNY favorably for future growth [66][70]