BNY Mellon, one of the largest international financial services employers in Ireland, has set up a new digital research and development hub in Dublin to drive innovation in artificial intelligence (AI) and data analytics for the US group’s clients globally.
The new unit will initially comprise a digital team of about 30, which the group aims to double by the end of 2025. The development includes an initial €8 million investment, supported by IDA Ireland.
BNY Mellon, formed from the merger of the Bank of New York and Mellon Financial Corporation in 2007, employs an estimated 1,700 in the Republic, mainly in the area of administration services for a variety of funds, including equity, bond, money market and exchange-traded funds.
The company, which is also a leading trustee and depository for offshore funds domiciled in Ireland, established a presence in Dublin in 1994. It currently services global clients from offices in Dublin, Cork and Wexford.
“This investment reinforces BNY Mellon Ireland’s position at the leading edge of financial services research and development, and helps cement Ireland’s position at the forefront in driving innovation in the financial services sector globally,” said Paul Kilcullen, chief executive of BNY Mellon’s Irish funds services business and its country manager in the State.
AI, machine learning and data analytics are changing the global landscape for investment management and administration, as with many other sectors.
Developers in Ireland recently contributed to work by BNY Mellon to help the investment industry use AI to better predict failures in the settling of trades after transactions are agreed. Almost 6 per cent of equity trades failed across the EU last year, according to the European Securities and Markets Authority (ESMA). Manual processes and human error are often a reason for this prevalent and costly issue in the industry.
BNY Mellon’s increased investment in leading edge innovation, development and delivery has resulted in the filing of the highest number of patent applications in the bank’s history last year, according to the group.
“Today’s announcement of a new digital R&D hub in Dublin is a great sign of commitment by BNY Mellon to their Irish operation,” said Michael Lohan, chief executive of IDA Ireland. “The decision to create 30 specialist digital roles here is a vote of confidence in the talent and skill set that they have found in Ireland on their journey so far.”
BNY Mellon, the world’s largest custodian bank, had $46.6 trillion (€43.5 trillion) in assets under custody or administration at the end of March. It also had $1.9 trillion in assets under management.
The company’s Irish unit is the second-largest fund administrator in the State, with just over €1.13 trillion in assets under administration as of early last year, according to a Central Bank of Ireland press release at the time. State Street is the largest player in this industry in the Republic.