BNY doubles down on AI investments amid operating model overhaul
The bank’s CEO said he remains convinced of the potential of AI to enhance client offerings and increase the efficiency of employees.
The BNY has increased its investments in artificial intelligence as it begins moving its employees over to a new platform’s operating model, according to the firm’s CEO.
Back in November 2023, the 240-year-old bank made a bullish case for AI at the BancAnalysts Association of Boston Conference. It continued to wax lyrical about the many potential use cases of AI for banks in the first quarter of 2024, when executives revealed that the bank was deploying the Nvidia DGX SuperPOD, an AI data center infrastructure designed for enterprises. Shortly afterward, the firm unveiled Eliza, a hub-and-spoke proprietary AI tool enabling employees of the firm to build virtual assistants to help ease their workloads.
Since then, however, it has largely been silent on the benefits of the technology. That changed today.
Speaking to investors on the bank’s Q4 earnings call, CEO Robin Vince said that the bank still believes in the potential of AI. “We haven’t made a lot of noise about it, but don’t misunderstand that for a lack of interest or investment. Because we haven’t slowed down—in fact, we’ve increased our AI investment,” Vince said.
Vince said that the bank has established an AI hub, which houses around 100 employees. He added that the technology could offer revenue opportunities when integrated with client offerings, but could also make BNY employees more efficient.
Also, on the call, Vince said that BNY is transitioning towards a new platform operating model, aimed at “enhancing the connectivity across our teams and empowering our people to drive change across the company.”
In practice, this involves creating a single access point for related capabilities and departments at the firm, Vince said. One quarter of the bank’s employees have now transitioned onto the new platform, with another wave set to migrate in Q1 2025. Vince told investors that AI would play a part in the bank’s new operating model once the migration is complete.
In September, BNY also announced the launch of a private markets platform for wealth managers. The platform, called Alts Bridge, connects wealth intermediaries with a network of private markets asset managers, including Franklin Templeton, Goldman Sachs, and Aviva Investors. It also provides market data, custody, and clearing for private markets assets.
Reliable private markets data is harder to acquire than public markets data, and the lower disclosure requirements in the sector make the process of data extraction and aggregation more arduous.
Although BNY executives did not comment on the potential use of AI within the firm’s new private markets platform on the call, technologists say generative AI could significantly improve the data collection process in the space.
Speaking to WatersTechnology for a previous article, Noel Calhoun, CTO of alternatives data provider Canoe Intelligence, said that Gen AI could soon replace robotic process automation in the data extraction process for private markets. In the current RPA process, a web browser is automatically scripted to log into company sites and pull datasets on behalf of investors.
“With an autonomous agent powered by an LLM, you can provide more generalized instructions [like], ‘Figure out how to log in. Figure out, once you log in, where the new files are. Figure out how to download those files,’” Calhoun said. “That’s, I think, a very promising approach, that will definitely end up replacing RPA in the future.”
Further reading
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
S&P debuts GenAI ‘Document Intelligence’ for Capital IQ
The new tool provides summaries of lengthy text-based documents such as filings and earnings transcripts and allows users to query the documents with a ChatGPT-style interface.
The Waters Cooler: Are times really a-changin?
New thinking around buy-build? Changing tides in after-hours trading? Trump is back? Lots to get to.
A tech revolution in an old-school industry: FX
FX is in a state of transition, as asset managers and financial firms explore modernizing their operating processes. But manual processes persist. MillTechFX’s Eric Huttman makes the case for doubling down on new technology and embracing automation to increase operational efficiency in FX.
Waters Wavelength Ep. 294: Grasshopper’s James Leong
James Leong, CEO of Grasshopper, a proprietary trading firm based in Singapore, joins to discuss market reforms.
The Waters Cooler: Big Tech, big fines, big tunes
Amazon stumbles on genAI, Google gets fined more money than ever, and Eliot weighs in on the best James Bond film debate.
AI set to overhaul market data landscape by 2029, new study finds
A new report by Burton-Taylor says the intersection of advanced AI and market data has big implications for analytics, delivery, licensing, and more.
New Bloomberg study finds demand for election-related alt data
In a survey conducted with Coalition Greenwich, the data giant revealed a strong desire among asset managers, economists and analysts for more alternative data from the burgeoning prediction markets.
How ‘Bond gadgets’ make tackling data easier for regulators and traders
The IMD Wrap: Everyone loves the hype around AI, especially financial firms. And now, even regulators are getting in on the act. But first... “The name’s Bond; J-AI-mes Bond”