Redefining ‘Business As Usual’
Applied alongside process automation, AI could further enhance efficiency as machines learn from the activities they perform and improve over time.
Two-thirds of those surveyed in the BNY Mellon Investment Management ‘Future 2024’ report said that developments in AI would ‘definitely’ rewrite the future of asset management globally. Portfolio managers and quantitative specialists are increasingly using tools such as cognitive computing, machine learning and social media to obtain informational advantages, while robotic process automation is being applied in the asset servicing space to enhance client experience.
BNY Mellon is using AI – natural language processing, in particular – to identify the intent of client inquiry emails so they can be routed to the right teams for rapid resolution. We are also using machine learning to classify and understand incoming trade instructions to eliminate manual processing.
Human intelligence is catching up on how to make the best use of Artificial Intelligence by implementing machines for repetitive processing activities, greatly reducing the time spent on data gathering and processing. This is enabling the human workforce to work closely with clients to enhance the overall user experience.
With the convergence of fintech companies and financial institutions in the investment space, we see increased acceptance and implementation of blockchain. The concepts behind blockchain or distributed ledger technology (DLT) have been around for few decades, but it was the creation of Bitcoin that brought all these technologies together and demonstrated the benefits to the wider investment market. Large financial institutions and regulators around the globe are now looking at blockchain as a means by which to eliminate unnecessary or duplicative processes, reduce costs and increase efficiency, transparency and resilience.
The world of assets is changing. Blockchain or DLT is transforming the way traditional securities are being issued, traded, cleared and settled. In the not-too-distant future, you will see various kinds of assets being tokenized – whether they are financial assets, commodities or store-of-value assets.
In our experience, many of our clients use multiple legacy systems with limited integration, creating an inconsistent data source that creates challenges for data consolidation and demands endless reconciliation.
Having an open ecosystem provides institutional investors with the flexibility to choose best-in-class systems for their investment activities and capture insights from a wide variety of data sources and vendors. This open, ‘plug-and-play’ model thereby provides deeper intraday insights and more real-time transparency around trade activities and NAV construction, helping chief investment officers, chief data officers and chief risk officers to achieve a single source of trusted information and insight.
BNY Mellon’s open platform strategy offers our clients choice. We are exploring partnerships with everyone from small fintechs to large tech firms, as well as working with clients, providers and even competitors to develop flexible, insightful and effective solutions.
The biggest transformation needed is a transformation of mindset. We need to think differently and work differently—changing every process, every client interaction, and every product. And it’s not about being better than yesterday. It’s about being in line with client expectations and on par with the leading world-class examples from other industries.