The BNY Mellon Digital TransitionMichael Gardner, BNY Mellon

@iValleyIC #FinTechTalk

http://ivalley.co

@rstata, @Altiscale http://www.altiscale.com

“Software is eating the world”

- Marc Andreessen

Uber, A Company Built On APIs

GeneralAnalytics

PasswordManagement

TransactionalEmail

Voice and SMS

PaymentServices

HelpDesk

Digitization: A Definition We Like

New entrants

Digital giants

Incumbents

Competitive Landscape

Online purchasing

Increasing online population

Customer Behavior

Advanced interfaces

Ubiquitous connectivity

Big Data analytics

Next gen computing

Technologies

Operational value

Business model innovation

Strategic & Operational Value

Organization

Process

Technology

Configuration

SOURCE: McKinsey & Company

Digital EnterpriseA company configured to deliver maximum strategic

and operational value from established and emergent

technologies and associated shifts in customer

behavior and competitive landscape

• Approach as a joint CTS / business change program with a strong sponsorship

• Invest in “the best training and mentorship you can find”

• Change the culture by addressing the breath of change required at all levels of the organization

• Use agile as a method to promote empowered, self organizing teams focused on services

• Start small and grow

• Work closely with vendors to support Lean-Agile

• Agile is not one thing. Connect the strategic dots.

• Change governance/ control processes to support agile

• Adopt a bimodal approach (not everything is suitable for agile)

• Architecture needs to be a first class citizen

• Agile is about teams of teams.

• Use end-to-end capabilities/ services as the organizing paradigm

• Promote reusable components.

PEOPLE

PROCESSTECHNOLOGY

Change Management

Nexus

Digitizing BNY Mellon Requires Technology, People & Process

5. API Inventory

6. Gateway/API Store

Investment Manageme

nt

Sales / Client

Management

Marketing

Manufacturing

Operations /

Logistics

Purchasing Procureme

nt

Continual Improvement

Talent Management

Government / Regulatory

7

TechnologyProviders

Market Infrastructure

Data Providers

Custodians

Clients

5

6

4

1

3

1

2

NEXENDigital Ecosystem

Powered by BXP

NEXEN Digital Ecosystem

A foundation for clients and the industry to build upon

Operational Backbone

1. BNY Mellon eXtreme Platform

2. Data Cloud

3. Digital Pulse

4. Workflow

Digital Interactions

Innovative Solutions

7. App store

Mature

Third generation BNY Mellon utility platform

Primary environment for web technology

Foundational element for NEXEN ecosystem

Digital

Private cloud, multi-datacenter, public-ready

Integrated developer tools

Open source common software stack

Rapid onboarding of developers and apps

Platform

Infrastructure and applications in one bundle

Not just a cloud – platform as a service allows switching out infrastructure providers

Cloud Foundry provides industry-standard open source foundation for continued cloud innovation

65+mmRequests Per Day

100%App Monitoring

BNY Mellon eXtreme Platform (BXP)

Big Data analytics platform, enabling us to generate actionable insights to improve processes and business performance. Digital Pulse is comprised of four core pillars combined to empower working smarter through evidence-based decision making.

CaptureCollecting event based data

1

StoreBig Data repository

2

ActDelivering actionable insights

4

AnalyzeConsistent, meaningful analytics

3

Value to our Client

Some Examples

• Improves service levels by trending SLA process steps and providing insights into activities in our Fund Accounting Process

• Reduces processing times by providing usage patterns of operations and providing improvement opportunities in our Transfer Agency business

• Reduces structural cost by identification of where manual effort is spent and applying automation or machine learning in Straight Through Processing

• Reduces risk and increases transparency by leveraging real-time position health meter to view critical intraday Liquidity metrics

Our Evidence Based Ecosystem

Digital Pulse

Makes It Easier For Clients To Integrate With Our Technology

NEXEN API Store

Personalized, Integrated, Needs-Focused Client Experience

NEXEN Gateway

Best-in-Class Apps Through Virtual Store

NEXEN App Store

The NEXEN ApproachTransformation is a Journey

Build common infrastructure for all products

Deliver existing and new products in the common infrastructure

Combine BNY Mellon services with outside tools to drive comprehensive solutions

Create New

Innovations

Bring 3rd Parties into our Distribution Channel

Allow Clients to Extend Their Investments

Education for CTS and the Business

App Store Gateway API Store Digital Pulse BXP Workflow Data Cloud

Audit Existing Portals

Distill Functions

into Services

Create integrated Client Experience

New Solutions

being Built on NEXEN

Conduct Architecture Reviews with

Lines of Business

Fill the API Store

Productivity

Continuous Delivery

Design Thinking

Faster Time to Market

Reuse

Technology Driven by Client Needs

13

Global Innovation Centers

Digital Transformations require

technology-driven Business

Process and Culture changes

Source: Cloud Foundry Foundation

PEOPLE

PROCESSTECHNOLOGY

Change Management

Nexus

Thank You!

Source: Cloud Foundry Foundation

Disclosure

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may be used as a generic term to reference the corporation as a whole and/or its various subsidiaries generally. BNY Mellon will not be responsible for updating any information contained within this material and opinions and information contained herein are subject to change without notice. BNY Mellon assumes no direct or consequential liability for any errors in or reliance upon this material. © 2015 The Bank of New York Mellon Corporation. All rights reserved.