The Bank of New York Mellon Corporation (BK): Business Model Canvas [Dec-2025 Updated]

You're looking past the headlines to see the nuts and bolts of how The Bank of New York Mellon Corporation actually operates, and the quick take is this: they are the quiet, fee-driven infrastructure backbone for global money, not your local branch. This isn't a retail play; it's a massive custody and servicing engine safeguarding $57.8 trillion in assets, which translated to a very healthy 25.6% ROTCE as of Q3 2025. If you want the precise breakdown of how they turn that scale into consistent revenue streams and manage costs like their $3.2 billion noninterest expense, check out the full canvas below to see their key activities and customer segments.

The Bank of New York Mellon Corporation (BK) - Canvas Business Model: Key Partnerships

You're looking at the ecosystem The Bank of New York Mellon Corporation (BK) relies on to execute its strategy, especially in the shift to digital services. It's a web of deep integrations, not just simple vendor relationships. Here's the quick math on the scale of these alliances as of late 2025.

As of June 30, 2025, The Bank of New York Mellon Corporation oversees $55.8 trillion in assets under custody and/or administration (AUC/A) and $2.1 trillion in assets under management (AUM). This massive base is what these partnerships support and expand.

The scale of The Bank of New York Mellon Corporation's operations, which underpins these partnerships, looks like this:

Metric	Value (As of mid-2025)	Source Date
Assets Under Custody and/or Administration (AUC/A)	$55.8 trillion	June 30, 2025
Assets Under Management (AUM)	$2.1 trillion	June 30, 2025
Fee Income as % of Total Revenues	71.7%	First nine months of 2025
Non-U.S. Revenues as % of Total Revenues	35%	First nine months of 2025

The Bank of New York Mellon Corporation's commitment to platform transformation is evident in its technology alliances. These firms help modernize the operating model.

• Partnered with Goldman Sachs to launch a tokenized money markets funds solution, utilizing Goldman Sachs' permissioned platform, GS DAP.
• Exploring tokenized deposits with the goal to migrate a part of its USD 2.5 trillion daily payment flow onto blockchain rails.
• Formed a partnership with Ripple to offer custody services for the RLUSD stablecoin, focusing on on-chain reserve management.
• Leveraging Google Cloud to build new collateral management and liquidity solutions using data analytics, AI, and machine learning technologies.

For new digital asset offerings, The Bank of New York Mellon Corporation is integrating with key players in the digital asset space. While Anchorage Digital Bank NA is noted as a major market participant alongside The Bank of New York Mellon Corporation, the firm is building out its own integrated Digital Asset Platform.

• BlackRock is the first client to use The Bank of New York Mellon Corporation's Digital Asset Data Insights product for its tokenized short-term U.S. Treasury fund, the BlackRock USD Institutional Digital Liquidity Fund ("BUIDL").
• The Bank of New York Mellon Corporation acts as both fund administrator and custodian for the BUIDL Fund's assets.

The Bank of New York Mellon Corporation's role in global financial market utilities is crucial for clearing and settlement, though specific utility partners aren't explicitly named in the latest data, the scale of its AUC/A suggests deep integration with global infrastructure.

In ETF administration, the firm services a significant portion of the market. This is a core area where partnerships with investment managers are essential for growth.

• As of September 2025, The Bank of New York Mellon Corporation services more than 65+ ETF Issuers globally.
• These services cover over 2,300+ Funds.
• The total assets under administration (AUA) for ETFs reached $3 trillion as of September 2025.
• Asset managers like BlackRock, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management are involved in The Bank of New York Mellon Corporation's tokenized MMF initiative, highlighting key administration relationships.

The Pershing platform is the direct conduit to broker-dealers and financial advisors. This channel is vital, contributing heavily to the firm's fee income.

• The Bank of New York Mellon Corporation helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally.
• The platform is undergoing enhancements, including unifying NetX Investor and Wealth Reporting into Wove Investor.
• Wove Portfolios expands Unified Managed Accounts (UMA) functionality, integrating active SMA managers and models.
• The firm launched the BNY Advisor Growth Network to support financial advisors' business growth objectives.

Finance: draft 13-week cash view by Friday.

The Bank of New York Mellon Corporation (BK) - Canvas Business Model: Key Activities

You're looking to map out exactly what The Bank of New York Mellon Corporation (BK) is spending its time and resources on right now, late in 2025. Honestly, it's a massive operation centered on safeguarding and moving the world's financial assets, all while aggressively digitizing that core function. Here's a breakdown of the key activities driving their business, grounded in their Q3 2025 results.

Providing custody and asset servicing for $57.8 trillion in assets

The bedrock of The Bank of New York Mellon Corporation's activity remains its role as a global custodian. This isn't just about holding things; it's the complex administrative work that goes with it. As of September 30, 2025, the firm was overseeing a staggering $57.8 trillion in assets under custody and/or administration (AUC/A). That figure itself represented a year-over-year increase of 10.9% as of that same date. This scale means they are deeply embedded in the infrastructure supporting global finance, serving over 90% of Fortune 100 companies and nearly all the top 100 banks globally.

Executing a platforms-oriented company transformation strategy

The Bank of New York Mellon Corporation is actively executing a major shift to a platform-centric model. This strategy aims to unify operations for better scalability and cross-selling. To fuel this, the company commits significant capital, investing $3.8 billion annually in technology and research and development. A key indicator of success here is client adoption across services; over the past two years, clients using three or more of The Bank of New York Mellon Corporation's services surged by 40%. To be fair, this platform unification is designed to insulate them, with sources suggesting 65% of pretax income derived from these high-margin, fee-based platforms as of mid-2025.

Managing investment portfolios across various asset classes

While custody is the largest number, managing client investment portfolios is a distinct, crucial activity. As of the end of Q3 2025, The Bank of New York Mellon Corporation oversaw $2.1 trillion in assets under management (AUM). This AUM level was reported as flat year-over-year in Q3 2025, balancing higher market values against cumulative net outflows. In the first quarter of 2025, AUM was reported at $2.0 trillion. This activity spans various asset classes, including traditional investments and growing areas like digital assets, where they are positioning for custody services.

Facilitating global payments, clearance, and collateral management

This activity focuses on the plumbing of the financial system-making sure transactions settle and assets are secured. Within the Clearance and Collateral Management area in Q3 2025, investment services fees grew by 12% year-over-year. This growth was directly tied to increased activity volumes. Specifically, average collateral balances increased by 14% year-over-year. Furthermore, the Market and Wealth Services segment, which includes these functions, reported total revenue up 14% year-over-year in Q3 2025.

Developing and deploying over 40 AI solutions for efficiency and risk

The Bank of New York Mellon Corporation is rapidly embedding artificial intelligence across its operations. While the prompt mentions over 40 solutions, the latest figures show significant acceleration. As of the Q3 2025 earnings call in October, the firm had 117 AI solutions in production, a 75% increase from the prior quarter. They also have more than 100 AI agents working alongside employees on tasks like payment validations and code repairs. Their proprietary AI platform, Eliza, achieved 96% adoption by employees in the first half of 2025. This focus is on creating capacity for employees to concentrate on higher-value work.

Here's a quick look at some of the key operational metrics driving these activities as of the end of the third quarter of 2025:

Key Metric	Value (as of 9/30/2025)	Year-over-Year Change (Q3 2025 vs Q3 2024)
Assets Under Custody/Administration (AUC/A)	$57.8 trillion	+10.9%
Assets Under Management (AUM)	$2.1 trillion	Flat
AI Solutions in Production	117	+75% vs Q2 2025
Total Revenue	$5.08 billion	+9.3%
Net Interest Income (NII)	$1.24 billion	+17.9%

These core activities are supported by several key operational focuses that you should keep an eye on:

• Driving adoption of the proprietary AI platform, Eliza, which reached 96% usage by mid-2025.
• Increasing client engagement across the platform ecosystem, evidenced by a 40% surge in clients using three or more services over two years.
• Growing fee revenue, with Investment Services Fees rising 6.8% year-over-year in Q3 2025.
• Returning capital to shareholders, having returned approximately $1.22 billion in Q3 2025 alone.

Finance: draft the Q4 2025 technology spend forecast against the $3.8 billion annual R&D target by next Wednesday.

The Bank of New York Mellon Corporation (BK) - Canvas Business Model: Key Resources

You're analyzing the core assets that let The Bank of New York Mellon Corporation keep its massive global custody and servicing engine running. These aren't just assets on a balance sheet; they are the foundation of client trust and operational capability. Honestly, when you look at the scale, it's what separates them from almost everyone else in the custody space.

Massive scale of Assets Under Custody and Administration (AUC/A) is perhaps the most visible resource. This figure represents the sheer volume of client assets the company is responsible for safeguarding and administering across its global operations. As of the third quarter close on September 30, 2025, The Bank of New York Mellon Corporation oversaw $57.8 trillion in assets under custody and/or administration (AUC/A). This represents an 11% year-over-year increase. For context, as of June 30, 2025, the figure was $55.8 trillion.

The firm's financial strength, critical for a systemically important financial institution, is underpinned by its capital base. The required figure for Common Equity Tier 1 (CET1) capital as of June 30, 2025, is $20.1 billion, ensuring stability. This capital supports the operational scale and regulatory requirements.

Here's a quick look at the scale and capital positioning as of late 2025:

Resource Metric	Value as of Latest Report (Late 2025)	Date/Context
Assets Under Custody and/or Administration (AUC/A)	$57.8 trillion	September 30, 2025
Assets Under Management (AUM)	$2.1 trillion	September 30, 2025
CET1 Capital (Required Figure)	$20.1 billion	As of June 30, 2025
CET1 Ratio (Standardized Approach)	11.7%	September 30, 2025
Tier 1 Leverage Ratio	6.1%	September 30, 2025

The Bank of New York Mellon Corporation's 240-year history and reputation as a trusted financial institution is a non-quantifiable but vital resource. Its lineage traces back to the Bank of New York, founded in 1784. This longevity translates into deep client relationships, including supporting over 90% of Fortune 100 companies and nearly all the top 100 banks globally. They also work with over 90% of the top 100 pension plans to safeguard investments.

The operational backbone relies on proprietary technology platforms and global data infrastructure. While specific platform dollar values are hard to pin down, the commitment to technology is clear through investments like the Digital R&D Hub in Dublin, which saw an initial €8 million investment to drive AI and machine learning capabilities. This infrastructure supports the global network.

The global network spanning 35 countries and a large employee base provides the necessary physical and human reach. The Bank of New York Mellon Corporation operates across the Americas, Europe, the Middle East and Africa (EMEA), and Asia-Pacific. As of early 2025, the company employed over 50,000 people globally.

These resources enable specific service delivery capabilities:

• Supporting client inflows that drove AUC/A growth by 11% year-over-year as of September 30, 2025.
• Facilitating strong fee revenue growth, with total fees and other revenues increasing 6.8% year-over-year in Q3 2025.
• Maintaining high liquidity coverage, with the consolidated Liquidity Coverage Ratio (LCR) at 112% as of Q3 2025.

If onboarding takes 14+ days, churn risk rises, which is why platform efficiency is a key resource focus.

Finance: draft 13-week cash view by Friday.

The Bank of New York Mellon Corporation (BK) - Canvas Business Model: Value Propositions

You're looking at the core value delivered by The Bank of New York Mellon Corporation (BK) to its institutional clients, which is built on scale, integration, and trust. This isn't just about holding assets; it's about servicing the entire investment journey.

The sheer scale of safekeeping is a primary value proposition. As of the end of the third quarter of 2025, The Bank of New York Mellon Corporation oversees a record $57.8 trillion in assets under custody and/or administration (AUC/A). This massive figure underscores the deep trust placed in the firm by global financial institutions.

The Bank of New York Mellon Corporation offers integrated solutions spanning the entire investment lifecycle for institutions. This means providing services from the front office through to settlement and record-keeping. You see this integration across their core segments:

• Fund accounting services and transfer agency.
• Securities lending and foreign exchange solutions.
• Middle-office outsourcing and data/analytics solutions.
• Liquidity services portal for institutional cash investments.

Financial strength is a non-negotiable value prop in this space, and the Q3 2025 results clearly demonstrate that. The firm reported a Return on Tangible Common Equity (ROTCE) of 25.6% for the third quarter of 2025. That's a strong return on the capital base supporting all those trillions in assets.

Access to global markets is channeled through key platforms. The Pershing platform, which supports wealth managers, saw its assets under custody or administration climb to $3 trillion in Q3 2025, adding $3 billion in net new assets that quarter. Separately, the Treasury Services function, particularly in collateral management, saw $3.1 trillion settle on the tri-party platform in Q3 2025 (excluding centrally cleared volumes).

The Bank of New York Mellon Corporation is positioning itself as an early mover in the evolving digital asset space. This is evidenced by the November 2025 launch of the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), designed to help U.S. stablecoin issuers manage reserves in compliance with the new GENIUS Act. Furthermore, the firm provides fund services for over 80% of the digital asset exchange-traded products in the U.S., Canada, and EMEA, and offers fund administration and custody for over 50% of tokenized fund assets globally.

Here's a quick look at the key financial and operational metrics underpinning these value propositions as of Q3 2025:

Metric	Value (As of Q3 2025)	Context/Segment
Assets Under Custody/Administration (AUC/A)	$57.8 trillion	Firmwide Safekeeping
Return on Tangible Common Equity (ROTCE)	25.6%	Financial Strength
Pershing Assets Under Custody/Administration	$3 trillion	Market Access Platform
Net New Assets (Pershing)	$3 billion	Q3 2025 Flow
Tri-Party Platform Settlement Volume	$3.1 trillion	Treasury Services
Total Revenue	$5.081 billion	Firmwide Performance
Pre-tax Margin	36%	Financial Strength

The Market and Wealth Services segment, which houses Pershing and Treasury functions, reported total revenue of $1.77 billion in Q3 2025, marking a 14% year-over-year increase.

Finance: draft 13-week cash view by Friday.

The Bank of New York Mellon Corporation (BK) - Canvas Business Model: Customer Relationships

You're looking at how The Bank of New York Mellon Corporation keeps its massive, complex client base locked in. It's not just about holding assets; it's about the dedicated service layer wrapping around those trillions. The relationship strategy is built on scale, high-touch service for the biggest players, and a heavy push into digital efficiency for everyone else.

Dedicated relationship managers for institutional and corporate clients

The core relationship strategy centers on serving the world's largest financial entities. You can see this in their client roster; The Bank of New York Mellon Corporation partners with over 90% of the Fortune 100 companies and nearly all of the top 100 global banks. These relationships are inherently sticky because the cost and complexity of switching custodians for that scale of assets are immense. The shift to a platforms operating model is designed to support these relationship managers by streamlining global services.

The sheer scale of assets under their care underscores the depth of these relationships:

Metric	Value as of Late 2025	Context
Assets Under Custody/Administration (AUC/A)	$57.8 trillion (as of Q3 2025)	Safeguarding global assets for institutional clients.
Assets Under Management (AUM)	$2.1 trillion (as of Q3 2025)	Assets managed across Investment and Wealth Management segments.
Client Base Coverage	Over 90% of Fortune 100	Indicates deep penetration into the largest corporate segment.

High-touch, consultative sales approach via the new commercial model

The Bank of New York Mellon Corporation is actively pushing a more proactive sales posture. They've been clear that the new commercial model is driving results. Honestly, the numbers back that up; they delivered two consecutive quarters of record sales in the first half of 2025. This isn't a passive service model; it's consultative, meaning the sales teams are expected to understand deep client needs and structure complex, multi-part solutions.

This consultative approach is directly tied to their transformation efforts:

• The new commercial model is enabling greater sales momentum.
• It supports multi-product solutioning across the firm.
• Revenue growth in Market and Wealth Services was 11% year-over-year in Q1 2025.

Digital self-service portals for real-time data and reporting

To balance the high-touch service for institutional giants, The Bank of New York Mellon Corporation is heavily investing in digital tools to enhance efficiency and provide clients with immediate access to their data. They aren't just talking about it; they are embedding AI deeply into operations. The internal Eliza AI Platform is a prime example of this digital enablement, reaching 96% adoption across the firm in the first half of 2025. That's nearly every employee trained on the new tools.

The scale of their data management capabilities shows how they deliver on real-time reporting promises:

Digital/Data Metric	Value	Focus Area
Eliza AI Platform Adoption (H1 2025)	96% of employees	Internal efficiency and client service enhancement.
Data Assets Under Management	$47 trillion	Managed by the Data & Analytics business for over 800 clients.
Enterprise AI Solutions in Production (H1 2025)	66	Driving efficiency and new client capabilities.

Long-term, sticky relationships with large, complex institutions

The nature of custody and asset servicing means relationships are measured in decades, not quarters. You see this stickiness in the sheer volume of assets they are entrusted with, which grew 13% year-over-year in Q2 2025. This growth is driven by client inflows and market values, showing clients are not only staying but also entrusting them with more assets.

The client base is defined by complexity and size:

• The Bank of New York Mellon Corporation serves institutional clients, corporations, and high-net-worth individuals.
• They are a leading provider to the debt capital markets, offering trustee, paying agency, and fiduciary services.
• The London Branch acts as the EMEA regional hub, supporting international client flows.

Unified sales effort focused on cross-selling multiple products

The strategic pivot to a platforms-oriented company is meant to break down silos, which directly supports cross-selling. The goal is to offer integrated client solutions across the entire investment lifecycle-from creation to trading to holding. The success of the new commercial model is explicitly linked to this ability to sell more than one service to a single client.

This focus on integrated solutions is key to revenue stability:

• Fee revenue increased 7% in Q3 2025, reflecting net new business.
• The firm emphasizes providing integrated client solutions across the investment lifecycle.
• BNY Pershing provides execution, clearing, custody, and technology solutions to broker-dealers and wealth managers.

Finance: draft 13-week cash view by Friday.

The Bank of New York Mellon Corporation (BK) - Canvas Business Model: Channels

You're looking at how The Bank of New York Mellon Corporation connects its services to the market as of late 2025. It's a mix of high-touch direct engagement and massive digital scale.

Direct sales force to institutional investors and corporations

The Bank of New York Mellon Corporation directly reaches its largest clients through dedicated teams. This channel serves a massive base of established players in the financial ecosystem.

• Helps over 90% of Fortune 100 companies access necessary capital and services.
• Serves nearly all the top 100 banks globally.
• Works with over 90% of the top 100 pension plans to safeguard investments.

The scale of this direct channel engagement is best seen when mapping the global presence that supports it:

Geographic Metric	Data Point (Late 2025)
Countries Served	100 markets
Countries with Operational Presence	35 countries
Key Operational Regions	Americas, Europe, Middle East, Africa, and Asia Pacific

Global network of offices and subsidiaries in 35 countries

This physical and legal network underpins global service delivery across the 35 countries where The Bank of New York Mellon Corporation has an operational presence. This reach supports the custody and asset servicing franchise.

As of September 30, 2025, The Bank of New York Mellon Corporation oversaw $57.8 trillion in assets under custody and/or administration, which was up 10.9% year over year.

Pershing platform for broker-dealers and registered investment advisors (RIAs)

BNY Pershing is a key channel delivering business-to-business solutions to wealth management and institutional firms. This platform supports growth for advisors.

• Reported net new assets of $3 billion in the third quarter of 2025.
• Investment services fees within the Markets and Wealth Services segment were up 9% year-over-year in Q3 2025.

The platform's performance is tied to client activity and market values, so you watch those flows closely. If onboarding takes 14+ days, churn risk rises.

Proprietary digital platforms for custody and investment management

The Bank of New York Mellon Corporation is embedding proprietary technology, especially artificial intelligence, directly into its operations to serve custody and investment management clients more efficiently. This is a major focus area for driving future capacity.

The firm had 117 different AI solutions in production as of September 30, 2025, marking a 75% increase from the second quarter. Furthermore, employee adoption of the Eliza AI platform reached 96% in the first half of 2025. Assets under management stood at $2.1 trillion as of September 30, 2025.

Direct access to global payment and clearing systems

This channel involves the plumbing of global finance, where The Bank of New York Mellon Corporation provides direct connectivity for clients. Growth here reflects increased transaction volumes and asset safekeeping.

• Clearance and collateral management investment services fees grew 12% year-over-year in Q3 2025.
• Average collateral balances increased 14% year-over-year in Q3 2025.

Fee income, in general, remains the largest revenue source, making up 71.7% of total revenues for the first nine months of 2025.

Finance: draft 13-week cash view by Friday.

The Bank of New York Mellon Corporation (BK) - Canvas Business Model: Customer Segments

You're looking at the core client base for The Bank of New York Mellon Corporation (BK), which is almost entirely business-to-business (B2B) and institutional. Honestly, their client list is a who's who of global finance, which is why their scale is so massive.

Institutional Investors (e.g., pension funds, endowments, mutual funds)

This group forms a huge part of the custody and administration business. The Bank of New York Mellon Corporation works with a staggering number of the world's largest asset managers. As of the end of Q3 2025, The Bank of New York Mellon Corporation was responsible for $57.8 trillion in assets under custody and/or administration (AUC/A).

To give you a sense of their penetration here, The Bank of New York Mellon Corporation serves 94% of the Top 100 investment managers. Furthermore, they safeguard investments for millions through pension plans, working with over 90% of the top 100 pension plans.

Here's a look at some of the AUM managed by affiliated investment managers as of June 30, 2025:

Investment Manager Brand	Assets Under Management (USD) as of June 30, 2025
Insight Investment	$853.2 Billion
Mellon	$513.4 Billion
Dreyfus	$414.7 Billion
Newton	$104.3 Billion
Walter Scott	$78.3 Billion
ARX	$7.8 Billion

Financial Institutions (nearly all top 100 global banks)

The Bank of New York Mellon Corporation is deeply embedded with its peer institutions. They serve nearly all of the top 100 banks globally. This relationship is critical for services like clearance, collateral management, and foreign exchange.

The scale of their custody services is the clearest indicator of this segment's importance. As of June 30, 2025, their AUC/A stood at $55.8 trillion, and by September 30, 2025, it grew to $57.8 trillion. This massive figure reflects the trust placed in them by the world's largest financial entities.

Corporations (over 90% of Fortune 100 companies)

For corporate clients, The Bank of New York Mellon Corporation focuses on treasury management and corporate trust services. They count over 90% of Fortune 100 companies as clients.

The data services arm is also a key touchpoint for corporations. The Bank of New York Mellon Corporation manages $47 trillion in data assets for over 800 clients. This shows they aren't just holding assets; they're providing the critical data infrastructure these large companies need to operate.

Governments and Sovereign Wealth Funds

While specific AUM/AUC figures for this segment aren't broken out separately in the latest reports, the general client base is confirmed. The Bank of New York Mellon Corporation helps governments fund local projects. This segment relies heavily on the firm's global reach and its ability to handle complex, large-scale custody and settlement for sovereign entities.

High-Net-Worth Individuals and Family Offices (Wealth Management)

This segment is served through BNY Mellon Wealth Management. You'll see this reflected in the Assets Under Management (AUM) figures, which were $2.1 trillion as of June 30, 2025, and also as of September 30, 2025.

Drilling down into the wealth segment specifically, client assets showed positive momentum. In Q1 2025, Wealth Management client assets increased 6% year-over-year, reaching $327 billion. Family offices, in particular, are showing a strong trend toward private markets, with nearly two-thirds of those managing over $1 billion planning to increase private equity exposure over the next 12 months.

The Bank of New York Mellon Corporation's overall client reach is summarized by these key penetration statistics:

• Fortune 100 companies served: 92% (based on 2024 data).
• Top 100 global banks served: 95% (based on 2024 data).
• Total data assets managed: $47 trillion.

Finance: draft 13-week cash view by Friday.

The Bank of New York Mellon Corporation (BK) - Canvas Business Model: Cost Structure

Noninterest expense for The Bank of New York Mellon Corporation in Q3 2025 was reported at $3.2 billion.

The reported GAAP total noninterest expense for the third quarter of 2025 was $3,236 million, which represented a 4% increase year-over-year. Excluding notable items, the figure was $3,197 million.

The cost structure is heavily influenced by fixed and semi-fixed components necessary for a Global Systemically Important Bank (G-SIB).

Expense Component Detail	Amount (Millions USD)	Context/Driver
Total Noninterest Expense (GAAP Q3 2025)	3,236	Increased 4% Year-over-Year (YoY)
Total Noninterest Expense (Ex-Notables Q3 2025)	3,197
Full Year 2025 Expense Guidance (Ex-Notables)	Up ~3% YoY	Forecast
Capital Return to Shareholders (Q3 2025)	$1.2 billion	Dividends of $381 million and share repurchases of $849 million

Compensation and benefits for a global, specialized workforce is a primary driver of the expense base. Noninterest expense increased year-over-year primarily driven by higher staff expense.

Regulatory compliance and legal expenses contribute to costs, with the sequential increase in Q3 2025 noninterest expense reflecting litigation reserves.

Ongoing investment in digital transformation and AI capabilities is significant:

• The Bank of New York Mellon Corporation launched the next version of its AI platform, Eliza.
• 117 AI solutions were in production as of Q3 2025.
• The bank developed a cadre of over 100 'digital employees' (AI agents).
• 80% of its workforce was trained to use AI tools.
• 99% of the bank's employees had the initial training in how to use Eliza.
• 20,000 of the bank's 50,000 staffers have used the technology to experiment.
• An initial investment of €8 million supported the Dublin Digital R&D Hub.
• Annual ICT spending was estimated at $1.5 billion in 2023.

Fixed costs related to technology infrastructure and platforms are substantial; service entities like TSG and its subsidiary TPC own and operate a majority of the technology infrastructure.

The Bank of New York Mellon Corporation (BK) - Canvas Business Model: Revenue Streams

You're looking at the core ways The Bank of New York Mellon Corporation generates income as of late 2025, based on their Q3 2025 performance. It's a mix of traditional banking interest income and substantial fee-based services.

The revenue streams are heavily reliant on fees generated from their custody and administration services, which is where the bulk of their income originates. Total revenue for Q3 2025 hit $5.081 billion, up 9% year-over-year. Total fee revenue was $3.637 billion, marking a 7% increase from the prior year.

Fee Revenue from Securities Services, which is the largest segment

The Securities Services segment is a foundational revenue driver. Total investment services fees from this segment, along with Market and Wealth Services, saw a 10% growth year-over-year. Specifically for Securities Services, the quarterly revenue reached $2.45 billion, reflecting an 11% increase.

The scale of their operation in this area is massive:

• Assets under Custody and/or Administration (AUC/A) stood at $57.8 trillion as of September 30, 2025.
• ETF AUC/A specifically increased by 35% year-over-year.
• Alternatives AUC/A grew by 12% year-over-year.

Net Interest Income (NII), which was $1.236 billion in Q3 2025

Net Interest Income (NII) showed strong growth, driven by reinvesting maturing securities at higher yields and balance sheet expansion. For the third quarter of 2025, NII was reported at $1.236 billion, which was up 18% compared to Q3 2024. The Net Interest Margin (NIM) expanded to 1.31%.

Investment Management and Performance Fees on $2.1 trillion in AUM

The Investment and Wealth Management segment reported total revenue of $824 million, a slight decrease of 3% year-over-year. Assets Under Management (AUM) were flat year-over-year at $2.1 trillion as of September 30, 2025. This flatness resulted from $33 billion of net outflows from long-term strategies being partially offset by $34 billion of net inflows into cash products.

Investment management and performance fees specifically were down 2% year-over-year.

Foreign Exchange (FX) and trading revenue from client activity

Revenue from the foreign exchange (FX) and trading desks reflected client activity levels. For Q3 2025, foreign exchange revenue was down 5% year-over-year.

Fees from Treasury Services and Clearance and Collateral Management

These services contribute significantly to the overall fee revenue, primarily within the Market and Wealth Services segment. The segment itself reported total revenue of $1.8 billion, up 14% year-over-year. Within this, Clearance and Collateral Management investment services fees increased by 12%, supported by growth in collateral management balances and clearance volumes.

Here's a quick look at the key Q3 2025 revenue components:

Revenue Component	Q3 2025 Amount (Millions USD)	Year-over-Year Change
Total Revenue	$5,081	9% increase
Total Fee Revenue	$3,637	7% increase
Net Interest Income (NII)	$1,236	18% increase
Securities Services Revenue	$2,450	11% increase
Foreign Exchange (FX) Revenue	Not specified as absolute value	5% decrease

Finance: draft 13-week cash view by Friday.