Businessmodel of BNY Mellon

Customer Segments

BNY Mellon offers a wide range of products and services to a diverse customer base. These customers can be organised broadly into the following categories:

• Individual Clients, comprising high-net worth and ultra-high-net worth individuals and family offices;
• Commercial Clients, comprising medium and large enterprises across multiple business sectors, to which the Company provides a range specialist corporate and financial services;
• Banking and Financial Services Clients, comprising insurance companies, banks, asset managers, central banks, financial intermediaries, pension funds, and broker-dealers; and
• Government and Institutional Clients, comprising government bodies, public institutions, sovereign institutions, and non-profit organisations. BNY Mellon serves a global customer base in addition to its core domestic clients in the US. This includes customers across North America, Europe, Middle East, and Africa, and Asia-Pacific.

Value Propositions

BNY Mellon provides value to its customers in the following ways:

• Its reputation and industry standing, with the Company established as a leading provider of investment management services, having a reputation for providing high-quality services and a certain amount of prestige attached to being one of its clients;
• Its diverse portfolio of services, with the Company providing a broad range of products and services, including wealth management, asset management, custody, and credit services to a diverse client base spanning the corporate, government and banking sectors;
• Its international reach, with the Company serving a global client base across numerous markets, including in jurisdictions across the North America, Asia Pacific, and Europe, Middle East, and Africa; and
• Its financial strength, with the Company controlling significant financial reserves, and being awarded high-level short-term and long-term issuer and deposit ratings with a stable outlook. ### Channels

BNY Mellon operates a website at www.bnymellon.com, through which the Company provides information on its various products and services, operating jurisdictions, and target industries. The Company also operates several client portals – including for wealth management clients, shareowner services clients, and BNY Mellon Connect clients – which allow customers to manage and monitor their assets and finances online,

BNY Mellon serves its clients directly through its team of financial and investment professionals, including specialist wealth management, investment, professional services, and other advisors. These personnel operate out of the Company’s network of 35 offices and service delivery centres located across 35 countries around the world, including locations in the UK, the US, Luxembourg, Australia, Japan and China.

BNY Mellon also utilises the services of various third parties, including exchanges, clearing houses, financial intermediaries and vendors, that provide services or security solutions for the Company’s operations.

Customer Relationships

BNY Mellon allows clients to manage and monitor their finances on a self-service basis, without interacting directly with members of the Company’s personnel, through the Company’s various online client portals. The Company also provides a range of other online tools that can be utilised independently by clients.

BNY Mellon principally serves its clients directly and in person through its network of offices and investment and financial professionals. These personnel consult closely with the Company’s clients, tailoring their various investment and financial services to suit the needs and circumstances of each individual client. Large clients are afforded their own account management teams, which can be contacted in order to receive personalised responses to queries and concerns.

Additionally, customers can contact the Company over the phone or via an online contact form for more general enquiries. BNY Mellon also provides a range of market reports and other publications that provide customers with various investment and financial market insights.

BNY Mellon also operates several social media accounts – including with Facebook, LinkedIn, Twitter, and YouTube – through which clients can follow the Company’s activities and interact directly with its personnel.

Key Activities

BNY Mellon is an investment management and investment services company.

It organises its operations into two core reportable business segments: Investment Management, through which the Company provides services such as asset management, brokerage, and wealth management services; and Investment Services, through which the Company provides services such as corporate trust, custody, and cash management services. The Company also has an Other segment, which includes credit-related services, the Company’s leasing portfolio, its corporate treasury activities, and its investment securities portfolio.

BNY Mellon has more than $1.6 trillion in assets under management and serves a global client base, having operations in numerous jurisdictions across the Americas, Asia Pacific, Europe, Middle East, and Africa.

Key Partners

BNY Mellon works in close collaboration with a network of companies and organisations, which assist in facilitating and supporting the Company’s operations. These partners can be organised broadly into the following categories:

• Supplier and Vendor Partners, comprising suppliers of services, equipment, and technologies that are utilised across the Company’s operating segments, as well as companies to which certain non-technical functions can be outsourced;
• Intermediary Partners, comprising various exchanges, clearing houses, and financial intermediaries that facilitate the Company’s service offerings, and extend the Company’s reach;
• Social and Community Partners, comprising a range of non-profits and charitable organisations with which the Company collaborates on various social and community projects around the world, primarily in the US; and
• Joint Venture Partners, comprising a range of companies, principally within the financial services and banking sectors, with which the Company jointly provides products and services through mutually owned entities. BNY Mellon has launched a number of partnerships in recent years. This includes a global real estate management partnership with Jones Lang LaSalle, a partnership with Appway AG to develop efficient client onboarding processes, and a custodian partnership with Local Pensions Partnership in the UK.

Key Resources

BNY Mellon’s key resources are its financial reserves, its intellectual properties, its online platforms, its IT and communications infrastructure, its network of offices and service centres, its partnerships and intermediaries, and its personnel.

According to its annual report, BNY Mellon relies on a variety of measures to protect its intellectual property and proprietary information, including copyrights, trademarks, patents, and controls. Searches of records published by the US Patent and Trade Office identified three patent applications in which BNY Mellon was named as assignee: ‘Mutual fund customer identification’, ‘Cash sweep account platform system and method’ and ‘Systems and methods for determining an earnings portion of a distribution from a 529 plan’.

BNY Mellon owns and or leases a number of physical properties around the world that are key to its operations. This notably includes its network of offices and service centres.

Cost Structure

BNY Mellon incurs cost in relation to the development of its intellectual properties and online platforms, the maintenance and development of its IT and communications infrastructure, the operation of its network of offices and service centres, the procurement of services, the management of its partnerships, the implementation of marketing campaigns, and the retention of its personnel.

In 2015 BNY Mellon recorded total non-interest expenses in the amount of $18.80 billion. This included total staff costs, including salaries and benefits, in the amount of $5.84 billion, and professional and other services expenses in the amount of $1.23 billion.

Revenue Streams

BNY Mellon generates revenue through the provision of various investment management and other financial services to individuals, businesses, and government entities. The Company’s revenue is derived in the form of various fees associated with its services, including asset servicing, clearing, and treasury fees.

In 2015 BNY Mellon generated total fee-based revenue in the amount of $12.00 billion, down on the $12.56 billion recorded by the Company in 2014. The largest portion of this revenue came in the form of asset servicing fees, which totalled $4.19 billion for the year. Clearing services fees accounted for $1.38 billion, issuer services fees accounted for $978 million, and treasury services fees accounted for $555 million.