00:00As the Chief Commercial Officer of BNY, I am very much focused on our clients.
00:05Some of my colleagues might even call me a bit client-obsessed.
00:09And our clients right now are dealing with a lot of macroeconomic factors,
00:14and they trust us as a long-term partner to really help them through the uncertainties,
00:20but also to capture opportunities going forward.
00:23So when things are uncertain, our clients like to talk,
00:27and we like to talk with our clients a lot,
00:29and of course we are in the middle of the financial markets right here.
00:35So some of the trends, some of the mega-trends we're hearing from our clients
00:38and what we see ourselves in our data, private markets still growing rapidly,
00:43of course AI everywhere, technology, data, especially how it impacts markets, infrastructure.
00:50Wealth is something, of course, we've talked about for a long time,
00:53still very much the focus for many of our clients,
00:56creating those personalized solutions and also holistic planning.
01:01And then blockchain technology really everywhere
01:04and changing the way that assets are created and recorded and transferred.
01:10And we sit in the middle of all of that, and it's a place that we're very comfortable with.
01:14Talk about some of the differences, though, in what those clients ask for.
01:19So take private markets, what's the difference between what they're looking for
01:22in terms of a product out of B&Y versus maybe someone on the wealth side
01:26or someone on maybe the bigger institution side
01:28that's just looking for a custodial or transaction type of services?
01:33So our private markets clients are growing rapidly,
01:36and we see that in our segment and across the industry.
01:40And the integrated solutions that they're looking for are sort of, again,
01:44in that intersection between private and public.
01:47So just like we do for our public clients,
01:49they are looking for fund administration, support in markets, payments, custody, and so forth.
01:55Is there friction now going on between that public and private side
01:59and the idea that a lot of these businesses now are straddling both worlds?
02:03I think a lot of our clients are obviously both in public and private markets,
02:07and we sit in that intersection where it's our job to help with that interoperability between the two.
02:13So a foot in the traditional, a foot in the digital, a foot in public, and a foot in private.
02:20So when we talk about the traditional B&Y client that we think of,
02:24which is obviously the gigantic asset managers and the funds and other big institutions,
02:30they're looking for, I guess, a little bit more ease in that process,
02:34a little bit more, I guess, productivity in that process, but they're also looking for safety.
02:38And particularly in the times that we're in right now,
02:41I am curious as to how much the security side of this becomes part of that product.
02:45Yeah, so perhaps if I take us back to the commercial model,
02:50which I know Robin has talked about a lot as well.
02:53So the premise of that was, of course, to break down the silos that we had
02:56between our different businesses, because we saw that our clients wanted to work with providers
03:02that could really provide that end-to-end view,
03:04because that makes them feel more resilient, it's more cost-efficient,
03:09and they want long-term partners.
03:11So the journey that we have been on to break down the silos,
03:15to connect all the businesses has really helped with that.
03:17And right now we see more and more that clients are actually reducing
03:21the number of partners and vendors they look at and work with.
03:25And so we're sort of optimally positioned for that because of all the work that we've done.
03:30Were you actually ready for that, this idea that they were looking to maybe
03:34sort of just funnel things more towards just one provider
03:36or at least fewer providers than in the past?
03:39So our transformation has very much been both about the platforms operating models,
03:43that's about running the business even better,
03:46the platforms, the products, the solutions that we have,
03:48and also the commercial model.
03:50And together, and together with sort of our culture and our people,
03:54we're seeing that growth with our clients.
03:56So the commercial model is all about what we say, be more for our clients.
04:00So many of our clients only did work with one or two lines of business.
04:04And what we've done is really to connect all of those businesses
04:08and also to welcome new clients, which has been great,
04:10and then to bring new products and solutions to market.
04:14So as we look at our clients, how do we know that it's actually working?
04:18Well, I would say, first of all, we're hearing it directly from our clients.
04:22They say that it feels different to work with us.
04:24There's a lot of drive.
04:25There's more urgency.
04:26We also see it in the numbers.
04:28Of course, we're growing, but we can also see the number of clients
04:32that are actually buying from three or more solutions has continued to increase.
04:37So it very much feels like it's working.
04:40And we're only in the beginning of this journey,
04:42so we're very excited about what's ahead.
04:44How fast does it take right now to get a client on board
04:49relative to maybe what it would have been five, ten years ago?
04:53So I think that leads us to the topic of AI.
04:56And AI has been really important to us on this transformation.
04:59And client onboarding is a great example.
05:02I think in the industry, the average to onboard an institutional client
05:06is something like up to 100 days,
05:09because teams have to go through hundreds and hundreds of documents.
05:12So this is an area where AI is really helping us
05:16and helping our processes, automating our processes.
05:18So one part of that process is research.
05:22We have to do a lot of research when we onboard clients.
05:26And that used to take a couple of days, and now it takes us ten minutes.
05:30I want to talk a little bit just about the proliferation of digital assets
05:34and the types of clients that are now coming to B&Y for help
05:39and making sure that they have the ease of transaction
05:43and, more importantly, the safety associated with it.
05:46So digital assets is clearly one of the megatrends.
05:49And I would say pretty much all our clients are interested in talking about it,
05:53whether they are a private company, a public company,
05:56or they're one of the new digital assets companies.
06:01To all of them, though, we provide traditional solutions, traditional assets,
06:05and then it's our ability to be in that intersection of traditional and digital assets.
06:10So obviously stablecoin, tokenization, all very important for us to have.
06:16But this innovation is also about innovating with our current products.
06:22So one product, one platform that I'm very excited about is Collateral One.
06:27It is an integrated platform for our buy-side clients,
06:31and it really helps them to optimize their assets,
06:34so both to meet their investment goals but also to lower the cost of funding.
06:39So it's sort of that intersection of securities, finance, liquidity,
06:45their derivatives trading counterparties all in one place.
06:51So as we think about innovating, as we think about the role of AI,
06:56it's really both on the traditional side and the digital side.
06:59And I'm really excited that last year our new head of product and innovation came on,
07:06and she really every day looks across all our different products and solutions,
07:11whether they're digital or traditional,
07:13and asks the question, in the combination of the different businesses that we have,
07:18could we create new and integrated solutions that might be unique
07:21because of all the businesses that we have?
07:23So as I look ahead, as I look at 2026,
07:27a lot of that is continuing to accelerate all the great things that we've done,
07:33but also bringing more new solutions to market.
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