Mal Cullen, CEO of CIBC Mellon, speaks to Global Finance about changes within the sub-custody space.
Global Finance: How does CIBC Mellon distinguish itself from the competition?
Mal Cullen: At CIBC Mellon, we pride ourselves on a relentless focus on client service, innovative technology and operational excellence. Our unique position as a Canadian leader backed by the global strength of BNY allows us to offer our clients a combination of local expertise and global capabilities.
We emphasize building deep, trusted relationships with our clients, understanding their specific needs and delivering tailored solutions. Our commitment to continuous improvement, agility and staying ahead of industry trends enables us to provide exceptional value and maintain our competitive edge.
Receiving the title of best sub-custodian in the world for the third year in a row is a remarkable achievement that highlights our unwavering commitment to our clients. Canada continues to be a vibrant and resilient market, and this accolade underscores our role in supporting the country’s financial ecosystem. Our devotion to excellence in asset servicing has always been our driving force, and this recognition highlights our efforts in fostering trust and stability in the Canadian financial sector.
GF: Where are you seeing innovation in this space?
Cullen: Innovation in the sub-custody space is largely driven by the rapid advancements in technology and the growing power of data analytics. We are witnessing transformative progress in areas such as automation and artificial intelligence. These technologies are revolutionizing how transactions are managed and processed, allowing for greater efficiency, accuracy and speed. We are actively investing in these cutting-edge technologies to elevate our service offerings, streamline our operations and deliver real-time insights and efficiencies to our clients. This commitment to innovation ensures that we can deliver top service for our clients in an increasingly complex market.
Innovation extends beyond technology; it is also evident in our collaborative efforts with fintechs and industry peers. Through these strategic partnerships, we are developing and deploying new solutions and capabilities that are reshaping the sub-custody landscape.
GF: What impact has artificial intelligence (AI) had on sub-custody offerings?
Cullen: The integration of AI into sub-custody services has been nothing short of transformative. By harnessing the power of AI, firms are now able to deliver more sophisticated predictive analytics, significantly bolster risk-management frameworks, and drive substantial gains in operational efficiency. AI’s ability to process and analyze vast quantities of data with unparalleled speed and precision allows institutions to identify patterns and anticipate potential challenges long before they materialize. This not only enhances the quality of decision making but also results in superior outcomes for clients. AI-driven tools are redefining the level of personalization available within sub-custody offerings.
GF: How will sub-custody change in the coming years?
Cullen: The sub-custody industry is poised for significant transformation in the coming years. We expect to see increased adoption of digital assets, which will revolutionize the way securities are issued, traded and settled. There will be a greater emphasis on transparency, security and real-time processing. Additionally, regulatory changes and the shift toward shorter settlement cycles, such as T+1, will require the industry to be more agile and responsive. At CIBC Mellon, we are committed to staying at the forefront of these changes, ensuring that we continue to provide our clients with cutting-edge solutions and services.
GF: What keeps you up at night?
Cullen: Cybersecurity is a constant and evolving concern, particularly as cyber threats grow in sophistication and persistence. CIBC Mellon has and will continue to take actions to sustain the high-quality service, stability and flexibility clients have come to expect of us. As a trusted safeguard of more than $2.9 trillion of assets held on behalf of banks, pension plans, investment funds, corporations and other institutional investors, we recognize the importance of our resilience to our clients. Our commitment to staying ahead of cybersecurity threats is underpinned by continuous investments in state-of-the-art security technologies, enhanced threat-detection capabilities, and a proactive approach to risk management. However, our strength in this area is amplified by the support of our parent organizations, CIBC and BNY—both of which place a high premium on a risk-management culture. CIBC Mellon’s cybersecurity strategy benefits from the considerable focus, investment and resources of CIBC in Canada and BNY globally, ensuring that we are well positioned to protect our clients in Canada.
