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BNY Mellon to deliver real-time account validation services to corporates and banks

BNY Mellon has announced a collaboration with risk and payments solution provider Early Warning Services (EWS). Through this agreement, BNY Mellon will deliver real-time account validation services to clients, and offer the flexibility to tailor a solution to meet clients' individual needs - whether through BNY Mellon directly, or through one of its Private Label Bank relationships. The bank says that this collaboration marks another step in its strategy to provide digital payment services that support clients with all of their payment needs, both now and in the future.

"We are very pleased to work with Early Warning Services to bring this integrated solution to our clients," said Michael Bellacosa, global head of Payments and Transaction Services at BNY Mellon. "Our goal is to support our clients' digital journeys in the payments space and to help them achieve greater operational efficiencies, manage risk and reduce cost."

Through this solution, BNY Mellon says it will enable clients to validate the status and owner of accounts across the US in real-time to provide increased risk and fraud prevention capabilities prior to the execution of payments. It is also payment agnostic and can be used to verify the status of an account and ownership prior to sending a wire transfer, automated clearing house (ACH) or real-time payment. 

Account owner authentication

The service leverages EWS' Real-time Payment Chek Service with Account Owner Authentication, which quickly validates if the account is open and in good standing and that the payee is an owner or authorised signer on the account. This should help clients in their efforts to effectively manage risk associated with payment processing across a multitude of use-cases. This service enables clients to better manage the growing compliance requirements to pre-validate payment data prior to making payments or requesting funds.

"Early Warning Services has collaborated with BNY Mellon in bringing innovative payment solutions to the market in the past, assisting corporates and banks to adopt new digital services," said Lou Anne Alexander, chief product officer at Early Warning Services. "The extension of this relationship addresses an increasingly important need for clients who are seeking real-time account validation to further reduce the risk of fraud and misdirected payments - which reduces costs and delivers a better user experience for clients."

BNY Mellon says it will offer clients multiple channels to access the solution based on their preference, including real-time application programming interface (API) integration, batch-file services and an online user interface. The API solution channel offers the added convenience of full integration with clients' existing treasury and vendor management systems to streamline customer enrollments and payment processing. This solution will be offered in conjunction with BNY Mellon's Real-Time Payments, Zelle® Disbursements and traditional cash management services in its Private Label portfolio.

Data and analytics focus

Last week, BNY Mellon also announced the launch of three data and analytics solutions that are designed to help investment managers better manage their data, improve the success of US-listed fund launches and support the customisation of investment portfolios to preferred environmental, social, and governance (ESG) factors. 

Additionally, as part of its digital strategy to collaborate with external partners, BNY Mellon has expanded its relationship with Microsoft to create data, technology and content solutions for investment managers built on Microsoft Azure. Three new offerings already launched include:

  • Data Vault: A cloud-based data and analytics platform that supports the rapid onboarding of data to provide greater flexibility and accelerate client innovation and discovery. Combining this with a scalable, machine learning approach to data quality, users can more quickly and easily interact with data to gain actionable insights.
  • Distribution Analytics: Takes advantage of machine learning to help asset managers better understand predictive market demand drivers and sales momentum for mutual funds and exchange traded funds in the US so they can gauge how to successfully gain market share.
  • ESG Data Analytics: Uses artificial intelligence to customise investment portfolios to individual ESG preferences with support from crowdsourced ESG data and demonstrability screens.

"Our clients want and need more flexibility in their cloud-based data solutions so they can remain agile to evolving market, client and regulatory changes," said Roman Regelman, senior executive vice president and head of Asset Servicing and Digital at BNY Mellon. "Data Vault, Distribution Analytics and ESG Data Analytics were developed to help investment managers better manage and unlock value from their data. Further, our expanded relationship with Microsoft underscores our open culture of partnering with leading technology providers to collaborate on data solutions that address client investment needs."

BNY Mellon Data and Analytics Solutions is a recently created cloud-based software and content offering that combines the established expertise and resources of the Eagle product suite, Intermediary Analytics and other BNY Mellon technology and data assets. It features an open ecosystem of proprietary and third-party business applications geared to help investment managers more efficiently manage and leverage their data so they can serve their clients more effectively and make better decisions in the front, middle and back office. 

"We are pleased to collaborate with BNY Mellon on innovative cloud-based solutions built on Microsoft Azure to help their clients create alpha-generating opportunities and manage assets," commented Judson Althoff, executive vice president of Microsoft's Worldwide Commercial Business. "The scope and scale of BNY Mellon's investment data, coupled with our portfolio of Azure products and services, will lead to solutions that enhance data as an asset and optimise accessibility of information for investment managers."

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