clients migrated to BNY Mellon’s digital solutions between March and June 2020
This front to back unification of data has been central to the company’s digitalisation journey. In a related initiative, it has connected platforms and open ecosystems with a range of fintech firms and order management systems to provide new data solutions for asset managers and owners.
In May this year, BNY Mellon deployed natural language processing artificial intelligence to provide enhanced data and analytics services for its buy-side clients. It collaborated with fintech firm Arria NLG, a provider of natural language generation, to integrate the technology into its Eagle Performance and Data Management solutions suite.8
“Our asset management clients were previously using multiple technology vendors and multiple order management systems for their trades,” explained Singh during the webinar. As custodian, BNY Mellon explored how to use digital tools to connect with asset managers’ infrastructure to empower portfolio managers at those firms with real-time insights that enabled better decisionmaking. “Making our clients more efficient is critical to our success,” he added.
BNY Mellon is creating an open ecosystem by collaborating with industry participants as the company looks to transform its core processes and deliver new services. Since announcing a strategic alliance with BlackRock, the company has also partnered with Bloomberg to unify its front to back data integration capabilities, leveraging the transaction information flowing through its asset servicing and processing engine to deliver actionable insights to clients.9
The integration of firm-wide custody data at BNY Mellon and connectivity with investment managers’ platforms has also helped reduce latency in the front office by “demonstrating dashboard widgets that give the portfolio manager advanced time to be able to execute decisions on a transaction that their risk system is signalling,” said Singh. “We want to connect to everything and anything we can, improve their workflow experience and remove steps from the reconciliation process.”
In fund accounting, Singh said the company is deploying bots to remove some of the reconciliation work in the process. It is working with machine learning to predict error rates in derivative trade models, which require a lot of manual interfacing before they can be uploaded into trade blotters. “These are some of the ways we are making ourselves more efficient, and our client base as well,” he concluded.
It is also using robotic process automation (RPA) to help clients eliminate other manual tasks. For example, Prudential’s Asian asset manager Eastspring has managed to automate or outsource over 80% of its processes across the front, middle and back office to companies such as BNY Mellon. “This leaves me with around 3,000 manual tasks,” said Buwalda during the webinar. “Using RPA, I can remove another 1,000 of those. The best way to test new technology is to work very closely with our service providers, our brokers and the regulators to co-create new solutions.”
Writing in his blog on BNY Mellon’s website in August,10 Regelman asserted that “if Covid-19 reinforced anything, it is the critical need to digitise every process and interaction. It happened in custody years ago, and it happened in accounting. We see digitisation transforming administration today. Going forward, we’ll see just about every part of what was once in the realm of bespoke client service become automated.”