As the closing bell rang at the Toronto Stock Exchange, Mal Cullen, chief executive of CIBC Mellon, stood alongside colleagues to celebrate a landmark achievement.
Cullen had just helped close the market, marking the firm’s milestone of surpassing C$3 trillion in assets under administration (AUA). For the CEO who took the helm barely two years ago, the moment was more than ceremonial. “I’m incredibly proud,” said Cullen, noting that reaching the C$3 trillion mark reflects “the trust our clients place in us and the hard work of our talented team”.
Cullen’s praise for the work of the nearly 2,000-strong team stretched to every employee who had contributed to the success over nearly three decades whether through solidifying, onboarding, or supporting the business during its history.
“This achievement isn’t just about the number,” he continued. “It’s about delivering meaningful progress… and continuing to innovate for our clients.” In other words, crossing the $3 trillion threshold is not a finish line, but a springboard for CIBC Mellon’s next evolution.
Spurring further innovation
Hitting C$3 trillion in AUA places CIBC Mellon in rarefied air. It ranks the Toronto-based custodian among a select group of global asset servicing firms that have ever reached such scale, reinforcing the firm’s role as a trusted provider in the industry.
The joint venture – co-owned by two powerhouses – administers assets on behalf of Canada’s largest banks, insurance companies, pension plans, investment funds, corporations and other institutional investors.
The growth has been striking. As at 31 December 2024, CIBC Mellon’s administered assets were roughly double the level from just a few years prior.
Spurring further innovation
Hitting C$3 trillion in AUA places CIBC Mellon in rarefied air. It ranks the Toronto-based custodian among a select group of global asset servicing firms that have ever reached such scale, reinforcing the firm’s role as a trusted provider in the industry.
The joint venture – co-owned by two powerhouses – administers assets on behalf of Canada’s largest banks, insurance companies, pension plans, investment funds, corporations and other institutional investors.
The growth has been striking. As at 31 December 2024, CIBC Mellon’s administered assets were roughly double the level from just a few years prior.
Cullen attributes this climb to strong client relationships and operational resilience. “It’s a significant milestone that reflects our clients’ confidence in us,” he explains to Global Custodian. “We have a relentless focus on making sure that the clients know that we are looking out for Canadian requirements. We’re advocating for regulatory changes and we’re supporting what is somewhat unique in the Canadian market.”
Beyond the sheer number, Cullen sees symbolic weight in the milestone. It coincides with a period of stability and expansion for the firm. CIBC Mellon was founded in 1996 as a 50-50 joint venture between Canadian Imperial Bank of Commerce (CIBC) and The Bank of New York Mellon – now known more succinctly as BNY. The unique parentage has always been a key to CIBC Mellon’s success – and never more so than now, as global investors increasingly seek both local insight and international reach.
With the support of BNY, CIBC Mellon has steadily broadened its service offerings. The firm has long provided custody, fund administration, pension benefit services and unitholder recordkeeping, as well as enabling access to parent company services such as foreign exchange and securities lending.
In more recent years, the CIBC Mellon has launched and grown capabilities in emerging areas like digital and data services, helped launch the world’s first bitcoin and ether ETFs in Canada, advanced into the insurance business and inked alliances with a growing array of fintechs to improve its efficiency and offerings.
The milestone places CIBC Mellon ahead as the largest Canadian custodian and also validates the company’s strategy of running the business better and innovating for clients. For CIBC Mellon, scale has come hand-in-hand with trust – and with pressure to keep raising the bar.
Global scale, local expertise
Global scale, local expertise
Cullen is the first to highlight the advantage of CIBC Mellon’s parentage. “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,” he explains.
In practice, this means clients benefit from a massive global network – BNY’s custody platform spans over $52 trillion in assets worldwide – while dealing with a team on the ground in Canada that understands the local market and regulatory landscape.
It’s a balance of big and small, global and local. Cullen often describes CIBC Mellon as the Canadian arm of BNY’s global asset servicing network, with deep roots and client relationships in Canada thanks to CIBC.
This dual identity enables the firm to tap into cutting-edge technologies, risk management practices and product capabilities from its multinational parents, then tailor them to Canadian client needs.
He points to the firm’s culture of focus on client service, innovative technology and operational excellence – a culture reinforced by both parent organisations.
Innovation in operations
Innovation in operations
Perhaps the most dramatic change Cullen has witnessed in asset servicing is the rise of automation and data analytics in what was once a manual, paper-driven business.
“Innovation in the custody space is largely driven by rapid advancements in technology and the growing power of data analytics,” he says. “At CIBC Mellon, teams are witnessing transformative progress in areas such as automation and artificial intelligence, which are revolutionising how transactions are managed and processed allowing for greater efficiency, accuracy and speed in daily operations.”
Subsequently, mundane back-office tasks that might have taken hours of human effort can now be completed in seconds with the right algorithms. Cullen notes that the firm is actively investing in cutting-edge technologies to streamline processes and deliver real-time insights to clients. The goal is to shift staff away from repetitive workload and toward higher-value analysis and client service.
One recent example is CIBC Mellon and BNY’s launch of the first integrated investment operations solution for a Canadian insurance company. “This solution represents a comprehensive service model, including the first outsourced general insurance fund accounting solution in Canada,” says Cullen.
He stresses that innovation isn’t pursued for its own sake, but to add tangible value: “Our commitment to continuous improvement, agility and staying ahead of industry trends enables us to provide exceptional value and maintain our competitive edge,” he says.
The future of asset servicing
The future of asset servicing
Looking ahead, Cullen expects the asset servicing landscape to continue shifting – and perhaps at an even faster pace. “The industry is poised for significant transformation in the coming years,” he predicts.
On the horizon are new technologies like digital assets and blockchain, which “will revolutionise the way securities are issued, traded and settled,” according to Cullen.
Today’s custodians may soon find themselves safekeeping tokenised stocks or bonds, not just paper certificates or electronic records. At the same time, clients and regulators are demanding greater transparency, security and real-time processing in every transaction. This is pushing firms to upgrade systems and rethink old processes.
Regulation, too, remains a wild card. From evolving accounting rules to heightened cybersecurity requirements, asset servicers will need robust, flexible infrastructures to keep up.
“At CIBC Mellon, we are committed to staying at the forefront of these changes,” he says, ensuring the firm continues to provide clients with cutting-edge solutions and services whatever the future may hold.
Part of that readiness comes from drawing on its shareholders’ strengths – whether it’s CIBC’s deep knowledge of Canadian banking or BNY’s investments in global fintech and risk management.
If the past few years have proven anything, it’s that adaptation is essential. Cullen admits that one of his constant concerns is cybersecurity, given the rising sophistication of cyber threats. But here again, he draws confidence from preparation: “Our cybersecurity strategy benefits from the considerable focus, investment and resources of CIBC in Canada and BNY globally, ensuring we are well positioned to protect our clients,” he notes.
From his vantage point, the future of asset servicing will be defined by those who can blend scale with agility. As Mal Cullen guides CIBC Mellon beyond the $3 trillion milestone, he is effectively balancing two imperatives: safeguarding the trust it took decades to earn, and reinventing the business to meet the demands of the next decade. It’s a juggling act he embraces.
After all, as Cullen puts it, relentless adaptation is part of the job description when you’re a “leader in asset servicing.” And if CIBC Mellon’s trajectory is any indication, the company is well on its way to defining what asset servicing will look like in the years ahead – global yet local, efficient yet innovative, and always prepared for what’s next.