Bank of New York Mellon (BK) Q2 2016 Earnings

posted in: Earnings Call, Notes | 0

Bank of New York Mellon (BK) CEO Gerald Hassell said they are using automation to streamline costs and improve efficiency 

“We fully implemented our Bring Your Own Device program, eliminating more than 90% of our company-paid handheld devices. We’ve been piloting robotics and machine learning processes to automate work and eliminate repetitive manual tasks. And while it’s still in the early days, we have put robotics into production in several areas and believe there are excellent prospects to roll this out more broadly and further reduce our costs. And in our business partner groups, we are leveraging our location strategy, negotiating to reduce vendor costs and automating or eliminating low-value activity.”

In the wake of Brexit, their bank is a safe harbor in a story sea

“Our third priority centers on being a strong, safe, trusted counterparty. The UK’s decision to exit the EU was and remains an opportunity to demonstrate our ability to navigate through real-life market stresses. Amidst the market volatility and increased transaction volume, in the wake of the referendum vote, we and our clients were able to continue to transact business without incident. We believe our UK and European legal entity structures, licenses and infrastructure, which includes a passport European bank in Belgium, creates a competitive advantage and positions us well to manage the potential impact of the new arrangements.  At least at this very early stage, we do not envision a significant impact to our operations and business.”

Bank of New York Mellon (BK) CEO Gerald Hassell on how they’re using robotics across the organization

“So right now, we have 30 bots in production right now across six different processes. We’re very encouraged by the results. It’s really taking some of the manual mind-numbing exercises out of the process and doing it at a lower cost. So we started with a couple of bots in one process and we since expanded it. So we’re actually pretty encouraged by the upside associated with this. We think we’re in the early stages of it and we see other applications across other processes. So, I’m actually encouraged by it and think it could be a real potential upside for us.”

Bank of New York Mellon (BK) CEO Gerald Hassell on why they’ve seen good growth in their liability driven asset management group 

“If you think about it with a lower-for-longer interest rate environment and pension liability is not declining, these firms need to come up with a better solution to match the liabilities against the returns on the assets. That’s exactly what our firm does, what Insight does. It really knows and tries to understand the liability structures and develop investment returns to better match it. Pension funds all over the world are struggling with this.”