BNY Sees Cross-Selling and AI Investments Fueling Its Next Growth Phase

Bank of New York Mellon (BNY Mellon) expects its next growth phase to be driven by cross-selling existing products to clients, as well as organic expansion and investments in artificial intelligence (AI), data and technology. Currently, only one client utilizes all eight of BNY Mellon's business lines, while clients utilizing at least three lines have grown by more than 60% in the first half of the year.

Organic growth reached 4.5% in the same period. The company aims to maintain an expense-growth outlook of 6% to 7% and is targeting a 38% pre-tax margin and 28% return on tangible common equity. BNY Mellon's artificial intelligence platform, Eliza, will be used to enhance client delivery, develop new products and boost operational capacity, rather than merely reducing headcount.

The company is focusing on expanding relationships with existing clients and seeking to earn client trust by transforming relationships from a vendor model to a partnership model.