Can someone explain what this means and the implications? The announcement says “Sinha will focus on developing partnerships with startups, accelerators, incubators and business partners to drive enterprise innovation and build ecosystems for all BNY Mellon blockchain initiatives.” Just trying to decipher all that jargon... help!!
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I'm no expert in blockchain but after doing some reading on it, seems like another over-hyped notion like Greenfield, driverless cars, bitcoin, and recreational rocket trips to the moon.
Suresh was a visionary with some things like the service manager initiative that required managers to have a visible, executable plan but NEXEN, what a waste of time and money.
zln has provided a clear & succinct B school level case study of went wrong, what is currently going wrong and the limited options available to us. I am impressed.
Folks,
Blockchain is an existential threat, as tiw has stated, to BNYM and any financial services institution that provides custody services.
However, this is a long term threat as blockchain requires a massive amount of distributed computing power and an agreement on what and how things will be stored and transacted on the blockchain by all parties using it.
A blockchain based custody ledger isn’t just going to appear overnight and disrupt the financial industry without the Fed and other sovereign government authorities stepping in to regulate it; this will take years.
BNYM is facing an ugly near term threat in that their revenue pipeline is currently non existent.
There is zero growth in custody banking and the next 3 quarters are going to be bumpy which is why BNYM is laying off so many people.
The only lever they have at the moment is cost cutting/containment.
5 year ago, BNYM should have been focusing heavily on reducing its tech and operations footprint (system and personnel redundancy/duplication) to control cost.
Instead, the CIO and President of Investment Services, both who are no longer with the organization, invested in NEXEN, Digital Pulse, and other new tech that was never going to provide business value or have a solid ROI.
Shame on them.
Also, meet the new boss, same as the old boss.
Block chain is an EXISTENTIAL threat to BNYM because the latter acts as a third trusted party in majority of it's business. Block chain removes/neuters that function and with it the utility of using BNYM. If you don't believe it don't worry you'll get to see it.
zlj, ybw here...
Quite the contrary.
BNY Mellon is no doubt worse off because of Suresh’s direction.
However, the current crop of tech leadership continues to throw gasoline on the raging fire and the company is rapidly going from bad to worse.
Of course this may all be a moot point should certain LOBs get divested (should BNYM find a buyer for the asking price).
Sure ybw, we're in a much better space now than we were then.
sarcasm
Folks, Suresh couldn’t execute, period.
He was too concerned with latest and greatest shiny new technology while Rome was burning around him.
LMAO at blockchain.
Suresh was a visionary. These guys are now doing whatever he did 5 years back .
Suresh was talking about this years ago! About time they catch up.
So true
Nobody jumps from basic mid 70’s transaction ledger to 2017 blockchain technology in a few years. Just not seeing it.
Nobody jumps from basic mid 70’s transaction ledger to 2017 blockchain technology in a few years. Just not seeing it.
He will present a line of BS for two years and then move on. How many times have you seen this?
Excitedly looking forward to seeing the technological limits of PowerPoint decks with this initiative!
Frankly, nothing is changing
Just the firm catching up to a trend from 3 years ago...