The Bank of New York Mellon (BK) Goldman Sachs 2024 U.S. Financial Services Conference summary

Business strategy and transformation

• Integrated multiple business lines to unlock cross-selling and operational synergies, focusing on leveraging a broad franchise across asset servicing, issuer services, collateral management, and wealth management.

• Reduced expense growth from 8% to 2.7% in 2023 by restructuring, investing in culture, and streamlining operations.

• Launched new products such as Wove and Alts Bridge, and invested in technology and team integration to drive durable growth.

• Shifted from siloed operations to a unified platform model, hiring a Chief Commercial Officer to centralize sales and client onboarding.

• Emphasized cultural change to foster collaboration and deliver comprehensive solutions to clients.

Growth opportunities and business performance

• Market and Wealth Services is the fastest-growing and most profitable segment, with a 45% margin and strong performance in Treasury Services and Collateral Management.

• Asset Servicing, the largest fee pool, showed accelerated growth and margin improvement, driven by both expense control and top-line expansion.

• Focused on adapting to mega trends such as the shift from public to private markets, ETF growth, and separately managed accounts, including the acquisition of Archer.

• Enhanced cross-business integration enables bundled solutions, increasing client value and business resilience.

• Transaction volumes, software sales, and diversified revenue streams contribute to earnings durability and countercyclicality.

Pershing and competitive positioning

• Pershing achieved 4% net new asset growth, with strategy focused on supporting consolidators and offering a non-competing platform for RIAs.

• Investments in Pershing expanded the product set, including the launch of Wove for advisor capabilities and integration with other company services.

• Enhanced ability to deliver bundled solutions, such as direct indexing and banking services, to wealth managers and RIAs.

• Competitive advantage highlighted by not running a retail network, thus not competing with clients for assets.