BNY Mellon Preps Fintech Accelerator Program to ID Key Tech Solutions

BNY Mellon has launched a fintech Accelerator Program to identify and incubate early-stage technology companies building solutions to the issues deemed critical challenges by the custodian and its clients.

Companies will be selected to take part in the Accelerator Program based on their participation in BNY Mellon’s Connect20 six-week hackathon, for which the closing date to submit proposals is today, September 23. In October, these proposals will be reviewed by a panel of BNY Mellon experts, and shortlisted companies will be invited to develop and submit prototypes that address the key “problem statements” outlined by the bank.

The bank identified three problem statements for companies to submit solutions for: an automated solution to replace manual client documents to actionable data searches to increase efficiency and reduce the risk associated with client onboarding; an automated scanning solution to replace manual review of loan agreements to monitor adherence to contractual terms and to create new data products; and a machine learning solution for reviewing large tables across different systems and data sources to identify and prevent matching errors.

These chosen areas represent “active problems that we’re trying to solve right now, or which are facing our clients,” says Hans Brown (pictured), global head of enterprise innovation and CIO for corporate technology at BNY Mellon. “It takes a certain humility to say, ‘We can’t do everything ourselves,’” he adds.

Companies develop and submit their proposals and prototypes via APIX, a “sandbox” collaboration platform specifically designed for fintech companies to develop and submit responses to specific requirements identified by financial firms.

In November, BNY Mellon will review the solutions and select the winning entries for participation in the Accelerator Program.

Brown says around 50 companies registered to participate in the hackathon, but that the firm only aims to involve “well under” 10 companies per year—ideally early-stage companies that already have a viable product and roadmap, and the capability to address the problems identified. There is no set timeframe for a company’s participation in the program, which may vary depending on the maturity of the company and its industry sector, as well as the complexity of the challenge being addressed.

“We’re engaging with tech companies and giving them the right level of executive sponsorship and mentorship. … We would love to see companies with a real-world solution to problems, which need mentoring to get that last 30% of the way,” Brown says. “It’s not just about incubating ideas; it’s about accelerating the company, and bringing our perspective to it. … It’s an investment of time and expertise, and having that access to help companies map out their product roadmap.”

Aside from mentorship, feedback, and guidance from BNY Mellon internal experts, participants also gain access to other resources of the bank, including its Global Innovation Centers, and to events organized by BNY Mellon, to expose them to other industry experts, peers, and potential clients.

The Accelerator Program does not involve any cash prizes, and participants retain ownership of all intellectual property contained in their submissions, although Brown says BNY Mellon may want to invest in or acquire participants in the program on a case-by-case basis, though it is not a guaranteed or required outcome. “We do have a robust partner program, and we do invest in emerging technology companies. And for the right company, we might take a stake … but it’s not a must,” he says.

Brown says the idea for the Accelerator Program derives from its recent investment in Kingfield Corp.—a provider of an artificial intelligence (AI) platform for improving client service for custodians, while reducing the cost of client support operations. The bank brought the company into its offices, enabling its own product teams to help the vendor refine its platform. The Accelerator Program “industrializes” that process to be able to apply it to more companies, he adds.