A contagious buzz
11 Dec 2024
Jack McRae speaks to Emily Portney, global head of Asset Servicing at BNY, on her career, reflections on the last year, and the bank’s plans for 2025
Image: BNY
Emily Portney loves the ever-changing nature of the asset servicing industry. In the 30 years BNY’s global head of asset servicing has spent in the industry, the financial services has shifted, and continues to shift, at a rapid rate which makes each day exciting.
“The type of competition has changed,” Portney says. “30 years ago, you had investment banks competing against investment banks, retail banks competing against retail banks. There were a few hedge funds and there might have been one or two very specific private equity firms. Now, all of these firms are blending.”
As head of BNY’s largest business, Portney has to ensure they stay in front of their competitors – no matter who or what they are.
Although, compared to when she started, she says “this industry is very, very different.”
“The rapid pace of change is a ‘new normal’ and the technology that we now have, for example AI, and the promise that it has is huge. It is making us all smarter and better and can reduce risk across the system.”
Portney studied sociology at university and explains that it was by pure “happenstance” that she ended up working in the financial services industry.
“I didn’t have a plan when I was at school and undergrad,” she admits. “I’m very glad I ended up in financial services. I think it is an incredibly dynamic industry and the pace of change is extraordinary.”
Portney began her career at JPMorgan Chase as a management trainee and she says “took an interest in market structure and the underpinnings of markets and ultimately gravitated towards it over the course of my career.
“I was very fortunate to be able to move back and forth between more traditional functional areas in financial services, as well as business roles. That has been extraordinarily helpful in terms of both diversity and breadth of experience.”
Portney has been at BNY since 2018, serving as global head of client coverage and head of Americas for asset servicing before becoming chief financial officer in February 2020 – a position that stands out as a highlight in an illustrious career.
“My time as CFO of BNY was a very proud moment and a highlight of my career,” Portney smiles.
“It was a wonderful platform and an enormous opportunity for both personal and professional growth; especially given it was during one of the most interesting rate environments, as well as during Covid-19.”
Portney heads the bank’s Asset Servicing business and there is a sense that Portney was always destined to lead. She prides herself on her attitude that has helped her grow in the industry to the position she is in now.
“It is about how you rise to the occasion, how resilient you are. Are you curious? How open are you? It is about taking a little bit of risk and embracing the uncomfortable to actually really get to the next level,” she emphasises.
A significant player
“I love being back in a business seat, especially in asset servicing,” Portney says. “You can be innovative and impactful in terms of truly writing what the future might look like.”
She points to the extent of M&A activity, new technologies, AI and a wave of “new players that compete in very different ways” as recent challenges that keep her on her toes.
What is her strategy for staying ahead of the competition?
“It’s always a really interesting environment to navigate and you have to keep reinventing yourself – not just as a professional, for us as a firm, it’s retaining our position as a key and significant player in the financial ecosystem,” she replies.
Portney laughs before using a quote from the famous ice hockey great Wayne Gretzky to underline her methods. “You have to continue to invest to stay relevant. As with the famous quote: ‘Skate to where the puck is going to be, not where it has been.’”
As far as BNY and Portney are concerned, “we’re doing all the right things, they’re clicking, and, frankly, the best is yet to come.”
Part of the reason for Portney’s optimism is because “the buzz internally and externally about how we’re executing is contagious. We’re really proud to be here and I’m really proud to work here.”
Continued excellence
“It has been an extraordinary year,” Portney reflects before pointing to BNY’s acquisition of Archer as a standout moment for her, the company, and the industry.
“Now this acquisition wasn’t just a win for asset servicing, it was an incredible win for the company. It really allows us to service the entire retail managed account ecosystem across manufacturing, servicing, and distribution in a way that no other competitor can,” she says.
In keeping with the Gretzky quote, Portney emphasises that “in 2025, we will continue to innovate, continue to execute, continue to invest in our future — both in terms of capabilities as well as our people and talent, because, after all, this is a people business.”
Portney expects the trend of clients looking to outsource will continue as they attempt to enhance their efficiency and scale. She explains that this comes amid widespread M&A activity predicted in the asset management space.
As well as the growth of alternative assets, Portney and BNY will be paying particular attention to digital assets and she believes that tokenisation will be at the top of the agenda with securities being released in a digital format an inevitability.
“Another trend certainly is what I call vehicle agnostic, or wrapper agnostic,” Portney explains.
“It’s much more about the strategy and how that strategy can be offered in many different wrappers. So you’re seeing some mutual funds being replicated, or actually even migrated into an exchange traded funds. You’re seeing ETF classes potentially coming into mutual funds. You’re seeing the rise of interval funds. You’re seeing business development companies in the private market world. It’s all about the strategy, and then the wrapper.”
Another important trend, Portney says, will be distribution and retail distribution.
“I think historically, many asset managers were largely focused on the institutional space. But as you are seeing demographics of the world change, especially with the expected transfer of wealth from older generations, the importance of actually accessing wealth managers is becoming incredibly important,” she says.
Learning
Even after 30 years in the industry, Portney is still fascinated by asset servicing.
“You can have many different careers all in one industry. There’s always something new to learn and I am an intensely curious person. I think that’s part of why I’ve been successful and, in this industry, there’s never a shortage of new things to learn,” she says.
The development of more niche players has reshaped the competitive landscape and pushes the larger, legacy firms to keep adapting. BNY, almost 240 years old, has to keep pace with modern firms and technology and Portney believes it can only do that with constant evolution.
“The importance of scale to compete is that much more important. On top of that, you’ve got fintechs and new competitors that are able to make great strides in more niche and critical areas,” she says.
The rise of modern technology and, in particular, artificial intelligence is a phenomenon that Portney could not have truly foreseen three decades ago, but embracing the changes is vital to remaining at the top of the game.
“I’ve been in the industry for 30 years and I do think it’s an incredibly interesting industry. You can have many different careers all in one industry. There’s always something new to learn and I am an intensely curious person. I think that’s part of why I’ve been successful and, in this industry, there’s never a shortage of new things to learn,” she says.
As one of the lead figures at one of the world’s largest banks, Portney takes on responsibility to help shape the next generation of leaders. She is constantly learning and says she “understands the importance and the criticality of having people who guide and shape you.”
Her own positive experiences with mentors and industry leaders when she was breaking through has made her yet more determined to facilitate growth in the industry — for others as well as herself. “I do spend a significant amount of time mentoring and sponsoring the network of future leaders,” she smiles. “There’s nothing more rewarding than helping someone build their career, opening doors for them and really seeing them flourish.”
“The type of competition has changed,” Portney says. “30 years ago, you had investment banks competing against investment banks, retail banks competing against retail banks. There were a few hedge funds and there might have been one or two very specific private equity firms. Now, all of these firms are blending.”
As head of BNY’s largest business, Portney has to ensure they stay in front of their competitors – no matter who or what they are.
Although, compared to when she started, she says “this industry is very, very different.”
“The rapid pace of change is a ‘new normal’ and the technology that we now have, for example AI, and the promise that it has is huge. It is making us all smarter and better and can reduce risk across the system.”
Portney studied sociology at university and explains that it was by pure “happenstance” that she ended up working in the financial services industry.
“I didn’t have a plan when I was at school and undergrad,” she admits. “I’m very glad I ended up in financial services. I think it is an incredibly dynamic industry and the pace of change is extraordinary.”
Portney began her career at JPMorgan Chase as a management trainee and she says “took an interest in market structure and the underpinnings of markets and ultimately gravitated towards it over the course of my career.
“I was very fortunate to be able to move back and forth between more traditional functional areas in financial services, as well as business roles. That has been extraordinarily helpful in terms of both diversity and breadth of experience.”
Portney has been at BNY since 2018, serving as global head of client coverage and head of Americas for asset servicing before becoming chief financial officer in February 2020 – a position that stands out as a highlight in an illustrious career.
“My time as CFO of BNY was a very proud moment and a highlight of my career,” Portney smiles.
“It was a wonderful platform and an enormous opportunity for both personal and professional growth; especially given it was during one of the most interesting rate environments, as well as during Covid-19.”
Portney heads the bank’s Asset Servicing business and there is a sense that Portney was always destined to lead. She prides herself on her attitude that has helped her grow in the industry to the position she is in now.
“It is about how you rise to the occasion, how resilient you are. Are you curious? How open are you? It is about taking a little bit of risk and embracing the uncomfortable to actually really get to the next level,” she emphasises.
A significant player
“I love being back in a business seat, especially in asset servicing,” Portney says. “You can be innovative and impactful in terms of truly writing what the future might look like.”
She points to the extent of M&A activity, new technologies, AI and a wave of “new players that compete in very different ways” as recent challenges that keep her on her toes.
What is her strategy for staying ahead of the competition?
“It’s always a really interesting environment to navigate and you have to keep reinventing yourself – not just as a professional, for us as a firm, it’s retaining our position as a key and significant player in the financial ecosystem,” she replies.
Portney laughs before using a quote from the famous ice hockey great Wayne Gretzky to underline her methods. “You have to continue to invest to stay relevant. As with the famous quote: ‘Skate to where the puck is going to be, not where it has been.’”
As far as BNY and Portney are concerned, “we’re doing all the right things, they’re clicking, and, frankly, the best is yet to come.”
Part of the reason for Portney’s optimism is because “the buzz internally and externally about how we’re executing is contagious. We’re really proud to be here and I’m really proud to work here.”
Continued excellence
“It has been an extraordinary year,” Portney reflects before pointing to BNY’s acquisition of Archer as a standout moment for her, the company, and the industry.
“Now this acquisition wasn’t just a win for asset servicing, it was an incredible win for the company. It really allows us to service the entire retail managed account ecosystem across manufacturing, servicing, and distribution in a way that no other competitor can,” she says.
In keeping with the Gretzky quote, Portney emphasises that “in 2025, we will continue to innovate, continue to execute, continue to invest in our future — both in terms of capabilities as well as our people and talent, because, after all, this is a people business.”
Portney expects the trend of clients looking to outsource will continue as they attempt to enhance their efficiency and scale. She explains that this comes amid widespread M&A activity predicted in the asset management space.
As well as the growth of alternative assets, Portney and BNY will be paying particular attention to digital assets and she believes that tokenisation will be at the top of the agenda with securities being released in a digital format an inevitability.
“Another trend certainly is what I call vehicle agnostic, or wrapper agnostic,” Portney explains.
“It’s much more about the strategy and how that strategy can be offered in many different wrappers. So you’re seeing some mutual funds being replicated, or actually even migrated into an exchange traded funds. You’re seeing ETF classes potentially coming into mutual funds. You’re seeing the rise of interval funds. You’re seeing business development companies in the private market world. It’s all about the strategy, and then the wrapper.”
Another important trend, Portney says, will be distribution and retail distribution.
“I think historically, many asset managers were largely focused on the institutional space. But as you are seeing demographics of the world change, especially with the expected transfer of wealth from older generations, the importance of actually accessing wealth managers is becoming incredibly important,” she says.
Learning
Even after 30 years in the industry, Portney is still fascinated by asset servicing.
“You can have many different careers all in one industry. There’s always something new to learn and I am an intensely curious person. I think that’s part of why I’ve been successful and, in this industry, there’s never a shortage of new things to learn,” she says.
The development of more niche players has reshaped the competitive landscape and pushes the larger, legacy firms to keep adapting. BNY, almost 240 years old, has to keep pace with modern firms and technology and Portney believes it can only do that with constant evolution.
“The importance of scale to compete is that much more important. On top of that, you’ve got fintechs and new competitors that are able to make great strides in more niche and critical areas,” she says.
The rise of modern technology and, in particular, artificial intelligence is a phenomenon that Portney could not have truly foreseen three decades ago, but embracing the changes is vital to remaining at the top of the game.
“I’ve been in the industry for 30 years and I do think it’s an incredibly interesting industry. You can have many different careers all in one industry. There’s always something new to learn and I am an intensely curious person. I think that’s part of why I’ve been successful and, in this industry, there’s never a shortage of new things to learn,” she says.
As one of the lead figures at one of the world’s largest banks, Portney takes on responsibility to help shape the next generation of leaders. She is constantly learning and says she “understands the importance and the criticality of having people who guide and shape you.”
Her own positive experiences with mentors and industry leaders when she was breaking through has made her yet more determined to facilitate growth in the industry — for others as well as herself. “I do spend a significant amount of time mentoring and sponsoring the network of future leaders,” she smiles. “There’s nothing more rewarding than helping someone build their career, opening doors for them and really seeing them flourish.”
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