BNY Highlights Cross-Selling and AI Investments for Future Growth
Bank of New York Mellon (NYSE: BNY) is focusing on cross-selling to existing clients and expanding its artificial intelligence capabilities as key drivers for future growth. CFO Dermot McDonogh noted that only one client currently uses all eight business lines, but the number of clients using at least three has increased by over 60%. Organic growth reached 4.5% in the first half of the year, driven by new client wins and product innovation rather than aggressive market share gains. The company is investing heavily in AI through its Eliza platform to enhance service delivery and operational efficiency without a primary focus on reducing headcount. BNY aims for recurring revenue to account for 75% of total income entering 2027, though it faces uncertainties around deposits, interest rates, and market conditions. The firm continues targeting a pre-tax margin of 38% and return on tangible common equity of 28%, both exceeded in the first half. BNY's strategy emphasizes client partnerships over vendor relationships, with efforts led by its chief strategy officer to explore product and geographic opportunities.
Topics: AI investment cross-selling expense management growth strategy