The Bank of New York Mellon Corporation (BNY Mellon) has announced a collaboration with Google Cloud to help market participants better predict billions of dollars in daily settlement failures, generate capital and liquidity savings, and unlock operational efficiencies. The initiative, which helps to extend BNY Mellon’s growing portfolio of emerging technology capabilities, will leverage Google Cloud’s data analytics, artificial intelligence (AI) and machine learning (ML) technologies to develop new collateral management and liquidity solutions built on Google Cloud.
BNY Mellon continues to heavily invest in advanced solutions that include the cloud, AI, ML and distributed ledger technology. This collaboration is the latest example of its open-architecture approach of working together with technology providers to extend its capabilities in reimagining and delivering solutions to meet client needs. In addition to creating use cases for the US Treasury market, BNY Mellon is developing AI-powered solutions for securities lending, liquidity forecasting, dynamic controls for pricing, anomaly detection for transactions, and automated document processing.
“We are excited to work with Google Cloud to develop a first-of-its-kind solution to help our clients predict approximately 40% of settlement failures in Fed-eligible securities with 90% accuracy,” said Brian Ruane, CEO of BNY Mellon Clearance & Collateral Management. “A settlement failure occurs when a buyer and seller fail to exchange cash and securities by the close of business on the scheduled settlement date. This prediction model could be a game-changer for market participants and is a tremendous showcase of how we are leveraging emerging technologies, such as the public cloud, to accelerate the delivery of meaningful solutions for our clients.”
The US Treasury market is the largest and the most liquid market in the world and BNY Mellon is the unique provider of clearance and settlement. On a typical day, approximately 2% of transactions fail to settle. BNY Mellon is using Google Cloud for its scalable data analytics capabilities and to train models on millions of trades to consider every value and factor that could result in a failure. This will help reduce client risk and create a more efficient financial market with fewer failure points and greater liquidity. BNY Mellon is also leveraging Google Cloud to support more development environments, making code delivery quicker while reducing infrastructure costs.
Merchant acquiring gets a cloud boost
In addition to the BNY Mellon news, Global Payments and Google have announced a multi-year partnership to deliver cloud-based products and capabilities, enabling best-in-class digital merchant customer experiences worldwide. As part of the partnership, Global Payments will migrate its merchant acquiring technology to Google Cloud, and will provide merchant acquiring services to Google to extend its global market reach. In addition, Global Payments and Google Cloud will be launching a series of strategic go-to-market and co-sell activities together.
Global Payments and Google will collaborate on product development and innovation in a move to further enhance and differentiate the suite of cloud-based solutions available to merchant customers on Google Cloud. As an example of this co-innovation work together, Google’s public APIs (Google Workspace, Google My Business, Google Ads) and other technologies will be integrated with Global Payments’ software and payments ecosystem, which the company says will deliver the full spectrum of solutions that merchants need to run and grow their businesses.
Global Payments’ merchant customers will be able to digitally access a stack of software-as-a-service offerings, including data and analytics, omnichannel ordering, payments, collaboration suite, email marketing, online presence and reputation management, loyalty, gift card, point-of-sale, capital access and payroll solutions. These products will be delivered through Global Payments’ secure cloud-native operating environment, which offers a simple, secure user experience integrated with Google’s technology. Together, this suite of capabilities will aid merchants’ ability to run their businesses, grow and retain long-term customer relationships.
Global Payments will also migrate much of its merchant acquiring technology workload to Google Cloud, streamlining its operating environment to enhance performance and drive cost efficiencies. By moving its acquiring technology to Google Cloud, Global Payments says it will be able to maintain its level of scalability, reliability, and security, while increasing its speed of innovation and ability to seamlessly deploy transaction services on-demand anywhere in the world.
As part of the agreement, Global Payments will become a worldwide merchant acquiring provider to Google. Google will leverage Global Payments’ Unified Commerce Platform for acceptance technology to meet its diverse payments needs.
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