BNY Mellon is investing in automation, AI and new technologies to increase efficiency and drive innovation. 

Automation of processes, digitization and AI across the firm will make it easier for our employees to do their jobs and subsequently channel their energies towards new innovations,” Chief Executive Robin Vince said during the bank’s third-quarter earnings call. 

The bank aims to reduce operating expenses by 4% this year by using automated technologies, even amid an increase in headcount, Vince said. 

BNY’s headcount was 53,600 in Q3, up 4.8% year over year, according to the bank’s earnings supplement. 

THE BIG PICTURE: Industry peers including Citibank, Wells Fargo and PNC Bank are also focused on efficiency. For example, Citibank said it added 6,000 employees to its tech department in Q3 to modernize its security infrastructure, enhance client experience and improve its data structuring. 

Wells Fargo, too, is investing in automation, Chief Financial Officer Mike Santomassimo said last week during the bank’s Q3 earnings call. 

PNC has been reducing headcount and says that money it saves from payroll will be invested in improving the bank’s tech stack to make operations more cost effective and efficient. 

BY THE NUMBERS: In Q3, BNY reported: 

• Total revenue of $4.4 billion, up 2% YoY; 
• Software and equipment expenses of $452 million, up 6% YoY; 
• Net interest revenue of $1 billion, up 10% YoY; and 
• Non-interest expense of $3 billion, down 16% YoY. 

NOTEWORTHY: The $1.9 trillion bank went live on FedNow this quarter, joining more than 50 other institutions including Citibank, U.S. Bank and JPMorgan on the real-time payment channel. 

BNY has used The Clearing House’s Real Time Payments platform for years and was involved in the pilot phase of FedNow, Vince said. 

“This allows us to expand our capabilities for corporations, non-bank financial institutions and fintechs to act as a service provider,” he said. “We are helping our financial institutions clients access instant payments, remain competitive and provide best-in-class service for their customers.” 

With FedNow, the industry is looking into how “the network effect is going to be required to really adopt these instant payment rails,” Vince added. 

FLASHBACK: The New York-based bank acquired automated fund management Milestone Group in 2021 for an undisclosed amount to expand its services for wealth managers. 

BNY last month launched BankifySM, an open banking payments platform that allows organizations to receive guaranteed consumer payments directly from bank accounts. 

MARKET REACTION: Shares of BNY Mellon [NYSE: BK] were up 4.9% from market open to $43.86 as of market close today. BNY has a market capitalization of $34.19 billion.