Business 4 min read By Callum Montgomery
BNY Bets on Cross-Selling and AI to Drive Next Growth Phase
BNY is leaning on cross-selling its custody, markets and wealth services while ramping up artificial intelligence investment to power its next stage of expansion, the bank has signalled.
BNY is placing cross-selling and artificial intelligence at the centre of its next phase of growth, as the US banking group looks to deepen relationships with existing clients and embed AI across its operations.
The bank, which provides custody, markets and wealth services to institutional clients worldwide, has signalled that it sees the two levers as central to expanding revenue without relying solely on new customer acquisition. Cross-selling — encouraging clients who use one BNY service to adopt others — is being positioned as a core driver of organic growth, while AI investment is intended to improve efficiency and sharpen the bank's product offering.
BNY's custody business holds trillions of dollars in assets for pension funds, asset managers and other institutional investors. That scale gives the bank a natural vantage point to offer adjacent services, from securities lending and collateral management to data and analytics. Executives have argued that clients increasingly want fewer, deeper relationships with providers that can handle multiple functions, a shift that plays to BNY's breadth.
The push comes as global custody banks face pressure on fee income, with interest rate movements and subdued asset flows weighing on margins across the sector. By selling more services to existing clients, BNY aims to lift revenue per relationship rather than chasing volume growth alone. The strategy also reflects a wider trend among large financial institutions, which are looking to technology to cut costs and differentiate their offerings.
Artificial intelligence is central to that effort. BNY has been investing in AI tools across areas including data processing, risk management and client servicing, where automation can reduce manual workloads and speed up decision-making. The bank has framed these investments as a way to improve accuracy and free up staff for higher-value work, rather than as a simple headcount reduction exercise.
For BNY's clients, the combination of cross-selling and AI could mean more integrated service packages and faster access to information. For the bank itself, the payoff would be a more diversified revenue base and stronger retention, at a time when competition for institutional mandates is intense.
The strategy carries execution risks. Cross-selling requires coordination across business lines that have historically operated with some independence, and AI projects can be costly and slow to deliver measurable returns. Regulators on both sides of the Atlantic are also paying closer attention to how banks deploy AI, particularly in areas touching risk and compliance.
BNY's scale gives it an advantage in data, but also makes change management complex. The bank will need to show that its investments translate into tangible gains in revenue and efficiency, not just pilot programmes. Investors have become more discerning about technology spending, rewarding institutions that can demonstrate clear productivity improvements.
Still, the direction of travel is clear. BNY is betting that a combination of deeper client relationships and smarter technology will define the next chapter of its growth, as it seeks to defend its position among the world's largest custody and securities services providers.
