Name: BNY Mellon at FinovateSpring 2024 – Working with early-stage tech companies
Uploaded: 2024-06-17T10:24:17.377Z
Duration: 496

FF.INT.04_Dexter Wilson_1.mp4

FF.INT.04_Dexter Wilson.vtt

ENGLISH

{{00:00:05}}
Hi, I'm Cameron Emanuel Burns,
reporting for FinTech Futures here at

{{00:00:08}}
Finovate Spring, San Francisco, and
I'm delighted to say that I'm joined

{{00:00:12}}
by Dexter Wilson, Senior Director of
Strategic Partnerships at BNY Mellon.

{{00:00:16}}
How are you and how are you
enjoying the conference so far?

{{00:00:18}}
Yeah, I'm doing really well.

{{00:00:19}}
It's been an amazing two days so
far, we have one more day to go.

{{00:00:24}}
It's fun.

{{00:00:24}}
I've bumped into a lot of people
I was not expecting to see here.

{{00:00:27}}
And that's actually been very
beneficial because we actually

{{00:00:29}}
had some sidebar collaborations.

{{00:00:31}}
And so overall, very good.

{{00:00:33}}
Awesome.

{{00:00:34}}
Firstly, can you talk to us about
BNY Mellon's strategic partnerships

{{00:00:38}}
and the innovation division?

{{00:00:40}}
Yeah, so I sit in a team called
Strategic Partnerships and Innovation.

{{00:00:44}}
In there, we have three pillars.

{{00:00:45}}
One pillar is called Innovation Centers.

{{00:00:48}}
So that's Singapore, London, and New York.

{{00:00:49}}
And those are actually physical spaces
where, like a minute inside Fintech space.

{{00:00:55}}
And in those we have people that
are UI UX designers that are trained

{{00:00:59}}
in design thinking, and so they
lead design thinking workshops.

{{00:01:01}}
And the idea is that they really help
our business leaders to ideate new ideas

{{00:01:06}}
for projects, products or how to solve
some of our most challenging problems.

{{00:01:11}}
And then a second pillar there is
my team, which is the partnerships,

{{00:01:14}}
strategic partnerships team, And our
group is really bridging the ideation

{{00:01:18}}
and taking it to the next stage.

{{00:01:19}}
So it's, how do you find
the solutions for it?

{{00:01:22}}
So if it's not going to be a build
solution, it's going to be a buy

{{00:01:24}}
solution or a partner solution.

{{00:01:26}}
Let's go out and work with our VC
partners and our industry partners

{{00:01:29}}
in the network to really find those
technology solutions to bring back

{{00:01:32}}
and do some proof of concepts.

{{00:01:33}}
So we run proof of concepts,
like an accelerator but we

{{00:01:36}}
call it our SINTS program.

{{00:01:39}}
And in that program we conduct POCs
with these companies that we see as

{{00:01:42}}
having strong potential for growth and
we want to be part of that journey.

{{00:01:46}}
And as part of that, we actually obtain
equity as part of that if we're, if

{{00:01:50}}
they're successful, we'll have some type
of equity grant that's part of that, and

{{00:01:53}}
that actually opens the doors for the
third pillar of our group, which is our

{{00:01:55}}
strategic investments group, and that team
is doing direct investments companies that

{{00:02:00}}
are typically Series A and B, sometimes
Series C, and, that we just really see a

{{00:02:05}}
lot of value and, we want to have a part
of that growth or we want to make sure

{{00:02:09}}
that we are staying a strategic partner
by and sure we have the right rights,

{{00:02:14}}
information rights, we're part of their
board, we have a board observer seat, so

{{00:02:17}}
we're just much more embedded with those
companies as they're looking to grow.

{{00:02:21}}
And so the three of us, those three
pillars work quite closely together,

{{00:02:24}}
sometimes it's completely independent,
sometimes, actually all three

{{00:02:26}}
overlap, we've had some go through
the whole entire life cycle of that

{{00:02:30}}
innovation at the organization.

{{00:02:32}}
Ah, super.

{{00:02:33}}
And, so what are the current
areas of interest for BNY Mellon

{{00:02:36}}
as it relates to technology?

{{00:02:37}}
Yeah.

{{00:02:38}}
Yeah for us, cyber is always a big
area of interest information security,

{{00:02:46}}
but wealthtech has been quite a hot
topic for the past year and a half,

{{00:02:49}}
even like on the alternative investment
side, we've done quite a bit of effort

{{00:02:54}}
looking at technology capabilities
there, anything that's around enterprise

{{00:02:58}}
platform, operational efficiency, we're
always interested in that, one of our

{{00:03:03}}
challenges we have a lot of tech, and
so most often now our architecture

{{00:03:09}}
review teams are saying, Hey, make sure
if you want to bring some technology

{{00:03:11}}
to us, we know what we're going to
have to consolidate or, get rid of

{{00:03:16}}
because, or decommission, so to speak.

{{00:03:19}}
For us, it's really about making sure
that whatever tech we're bringing, it's

{{00:03:22}}
going to be complementary to what we have,
or it's going to replace something else.

{{00:03:26}}
Sure.

{{00:03:27}}
Could you provide us an example
of how you work with early stage?

{{00:03:31}}
Tech companies.

{{00:03:32}}
Yeah.

{{00:03:33}}
As I mentioned, we have the Ascent
program, and that is companies

{{00:03:35}}
that are C plus, I would say going
to their series A or series A.

{{00:03:40}}
And so in that program we see a capability
that we're really interested in and

{{00:03:45}}
we want to move forward with actually
embedding that in our technology,

{{00:03:48}}
but they're early stage, right?

{{00:03:50}}
We're a highly regulated entity we're
a tier one bank and so because of

{{00:03:54}}
that, there's just a lot of concerns
from a risk standpoint of doing

{{00:03:58}}
any type of engagement with their
early stage technology companies.

{{00:04:02}}
As part of the POC, not only do we test
out the capabilities and prove that

{{00:04:06}}
out, but we also do workshops, like the
incubator or accelerator in the other

{{00:04:11}}
traditional sense, where we provide
workshops on third party governance,

{{00:04:15}}
on risk, on compliance, on the sales
pitch, on financials, all those things

{{00:04:20}}
that we want to make sure that company
has solid and has built out, so that

{{00:04:24}}
when we get ready to move forward with
commercials, we don't have that as a

{{00:04:27}}
hindrance that we have to now get around.

{{00:04:29}}
So we do quite a bit of activity
in that space to really make sure

{{00:04:32}}
that they are groomed and ready
to move forward with us from an

{{00:04:35}}
enterprise standpoint at the company.

{{00:04:37}}
Super.

{{00:04:37}}
And so what are some of the
challenges when working with

{{00:04:40}}
early stage tech companies?

{{00:04:41}}
So it is, the, one of the
greatest challenge we have is

{{00:04:48}}
oftentimes the leadership itself.

{{00:04:50}}
They may have really great capabilities,
great technology, really smart

{{00:04:53}}
people, but when it comes to running
the business, that's where we find

{{00:04:55}}
that challenge because once you
start digging into the financials.

{{00:04:58}}
Once we started looking at their,
turnover, the burn, the runway, all

{{00:05:04}}
those key things that we are, that
are critical for us to understand.

{{00:05:07}}
Because we want to make sure that
whatever technology we're bringing

{{00:05:09}}
in house, It's going to be there
for a while, for a long, run, right?

{{00:05:12}}
We want to make sure that it's going
to be something that we can leverage in

{{00:05:14}}
the future, we can actually grow on, and
something that we don't have to prop up.

{{00:05:19}}
So the biggest challenge is making
sure they have all that stuff in place.

{{00:05:24}}
And, the pace that we move at
in a big organization is slow.

{{00:05:29}}
And making sure that our tech
partners that we are partnering

{{00:05:33}}
with, Just appreciate that pace
that we're going to move at.

{{00:05:36}}
We're not going to move fast.

{{00:05:37}}
We try.

{{00:05:37}}
Actually, we actually have a
process called FinTech Express.

{{00:05:39}}
And the whole idea is how do we
onboard technology companies faster?

{{00:05:42}}
And we actually have a pretty white
glove service to work with our third

{{00:05:45}}
party governance to get them more
comfortable, but it still takes time.

{{00:05:49}}
Yeah.

{{00:05:49}}
And so that's a challenge I think
for, both sides to acknowledge

{{00:05:52}}
and be appreciative of.

{{00:05:53}}
Yeah, sure.

{{00:05:54}}
And so how has strategic partnerships
at BNY Mellon progressed over the years?

{{00:05:58}}
And what does the future
look like for you?

{{00:06:01}}
Yeah, so it's funny.

{{00:06:01}}
I joined the team four years ago
and at that time we were still

{{00:06:05}}
early on with strategic investments.

{{00:06:07}}
We only had a few investments and they
were actually legacy investments and four

{{00:06:11}}
years ago we really revamped our strategy.

{{00:06:14}}
And since then we have well
over 35 companies that we've

{{00:06:17}}
invested in the past four years.

{{00:06:19}}
We've learned a lot in
those past four years.

{{00:06:21}}
We we have a better sense of What what
to look out for the various factors that,

{{00:06:28}}
that makes it important for when we say
what strategic looks like, we have a

{{00:06:31}}
better idea of what strategic looks like.

{{00:06:32}}
I think also just even going through
like the SVB challenge where, you

{{00:06:37}}
know, some of our companies that are
in our portfolio actually had SVB,

{{00:06:40}}
so we had to step in and help them.

{{00:06:41}}
But even like understanding those and
how to, how the overall ecosystem is all

{{00:06:45}}
connected and the risks that we have to be
mindful of and be prepared to respond to.

{{00:06:49}}
It's something we definitely have
learned over the past four years,

{{00:06:51}}
and actually refined our approach how
we do our scanning, how do we do our

{{00:06:55}}
diligence I think we just made it much
more, much better, much more, just a

{{00:07:01}}
better framework for making sure that
we don't introduce any, we've done it

{{00:07:05}}
quite well, most of our companies have
done really, well with us, they've

{{00:07:07}}
grown a lot, but we just know what, how
to continue to make it more refined.

{{00:07:11}}
And can you give us an insight to any
of your recent deals or partnerships?

{{00:07:15}}
Yeah, we just had one with Symphony that
we signed at the beginning of the year.

{{00:07:22}}
Another investment, the follow
up investment we've had, they're

{{00:07:24}}
a strategic partner of ours.

{{00:07:28}}
We, have a couple, we have some that
we are announcing, we're just still, I

{{00:07:31}}
can't actually announce them in public.

{{00:07:33}}
We are quite active.

{{00:07:34}}
I would say last year we had a number
of investments have one with Impact

{{00:07:39}}
Analytics for the sustainability.

{{00:07:41}}
Another cool story there because
that's a company that's come

{{00:07:43}}
through our Ascent program.

{{00:07:45}}
We have a lot of interest in
their sustainability data.

{{00:07:48}}
It complements a lot of
the data that we have.

{{00:07:49}}
We're saying, hey, is there ways that
we actually work together to give our

{{00:07:52}}
clients even better and deeper insights to
something that by alone we can't provide.

{{00:07:58}}
And so from there if we decide to
go forward with them as a strategic

{{00:08:01}}
partner I think it'd be some really
cool products that come out of that.

{{00:08:04}}
Excellent.

{{00:08:05}}
Thank you so much for
your time today, Dexter.

{{00:08:07}}
That was really, interesting.

{{00:08:08}}
And I hope you enjoy the
rest of the conference.

{{00:08:09}}
Thank you.

{{00:08:09}}
Thank you for having me.

Hi, I'm Cameron Emanuel Burns,
reporting for FinTech Futures here at

Finovate Spring, San Francisco, and
I'm delighted to say that I'm joined

by Dexter Wilson, Senior Director of
Strategic Partnerships at BNY Mellon.

How are you and how are you
enjoying the conference so far?

It's been an amazing two days so
far, we have one more day to go.

I've bumped into a lot of people
I was not expecting to see here.

And that's actually been very
beneficial because we actually

Firstly, can you talk to us about
BNY Mellon's strategic partnerships

Yeah, so I sit in a team called
Strategic Partnerships and Innovation.

So that's Singapore, London, and New York.

And those are actually physical spaces
where, like a minute inside Fintech space.

And in those we have people that
are UI UX designers that are trained

in design thinking, and so they
lead design thinking workshops.

And the idea is that they really help
our business leaders to ideate new ideas

for projects, products or how to solve
some of our most challenging problems.

And then a second pillar there is
my team, which is the partnerships,

strategic partnerships team, And our
group is really bridging the ideation

So it's, how do you find
the solutions for it?

So if it's not going to be a build
solution, it's going to be a buy

Let's go out and work with our VC
partners and our industry partners

in the network to really find those
technology solutions to bring back

So we run proof of concepts,
like an accelerator but we

And in that program we conduct POCs
with these companies that we see as

having strong potential for growth and
we want to be part of that journey.

And as part of that, we actually obtain
equity as part of that if we're, if

they're successful, we'll have some type
of equity grant that's part of that, and

that actually opens the doors for the
third pillar of our group, which is our

strategic investments group, and that team
is doing direct investments companies that

are typically Series A and B, sometimes
Series C, and, that we just really see a

lot of value and, we want to have a part
of that growth or we want to make sure

that we are staying a strategic partner
by and sure we have the right rights,

information rights, we're part of their
board, we have a board observer seat, so

we're just much more embedded with those
companies as they're looking to grow.

And so the three of us, those three
pillars work quite closely together,

sometimes it's completely independent,
sometimes, actually all three

overlap, we've had some go through
the whole entire life cycle of that

And, so what are the current
areas of interest for BNY Mellon

Yeah for us, cyber is always a big
area of interest information security,

but wealthtech has been quite a hot
topic for the past year and a half,

even like on the alternative investment
side, we've done quite a bit of effort

looking at technology capabilities
there, anything that's around enterprise

platform, operational efficiency, we're
always interested in that, one of our

challenges we have a lot of tech, and
so most often now our architecture

review teams are saying, Hey, make sure
if you want to bring some technology

to us, we know what we're going to
have to consolidate or, get rid of

For us, it's really about making sure
that whatever tech we're bringing, it's

going to be complementary to what we have,
or it's going to replace something else.

Could you provide us an example
of how you work with early stage?

As I mentioned, we have the Ascent
program, and that is companies

that are C plus, I would say going
to their series A or series A.

And so in that program we see a capability
that we're really interested in and

we want to move forward with actually
embedding that in our technology,

We're a highly regulated entity we're
a tier one bank and so because of

that, there's just a lot of concerns
from a risk standpoint of doing

any type of engagement with their
early stage technology companies.

As part of the POC, not only do we test
out the capabilities and prove that

out, but we also do workshops, like the
incubator or accelerator in the other

traditional sense, where we provide
workshops on third party governance,

on risk, on compliance, on the sales
pitch, on financials, all those things

that we want to make sure that company
has solid and has built out, so that

when we get ready to move forward with
commercials, we don't have that as a

hindrance that we have to now get around.

So we do quite a bit of activity
in that space to really make sure

that they are groomed and ready
to move forward with us from an

And so what are some of the
challenges when working with

So it is, the, one of the
greatest challenge we have is

They may have really great capabilities,
great technology, really smart

people, but when it comes to running
the business, that's where we find

that challenge because once you
start digging into the financials.

Once we started looking at their,
turnover, the burn, the runway, all

those key things that we are, that
are critical for us to understand.

Because we want to make sure that
whatever technology we're bringing

in house, It's going to be there
for a while, for a long, run, right?

We want to make sure that it's going
to be something that we can leverage in

the future, we can actually grow on, and
something that we don't have to prop up.