How does this place manage to keep ANY clients?
7 replies (most recent on top)
@a4 Exactly correct. Not a great way to do and grow business but that is precisely what’s happening.
@gr Moving jobs offshore has been ongoing for years and isn’t innocent. It was and is quite deliberate and all the effects are well understood, and one of the keys to this is for corporate America and government to pretend to not have seen it or misinterpreted it and it “needs further study” and if you point it out you are ignorant, stupid, a nut job or whatever. BNY cannot shed jobs fast enough and since none of us matter we just get steamrolled. Our competitors and clients aren't ignorant to what's going. They too are in the same race.
State Street is outsourcing to India, J.P. Morgan is outsourcing to India too, They are as toxic as BNY. Basically you just go by your luck in these firms. I worked in all 3 of them.
With all the federal rhetoric around US jobs being lost there are many reasons to not want association with BNY. What happens if BNY's offshoring practices get attention and are required to stop? The firm will collapse, the eggs are in one basket at this point
They wouldnt if they really knew what was happening at this place
They keep existing clients because it is a pain for these clients to pull up stakes and move. Plus, many of these clients still get custom handling despite what is said. HOWEVER….. its one thing to keep existing clients but quite another to ADD new clients and new partnerships. You don’t see that happening anymore. Partnerships with Goldman and BLK don’t count since they are silent directors of BNY anyway.
It’s a major headache and cost to switch providers even if a new provider is giving them a good price.
Big clients don’t want to park all their business to one provider and small clients probably don’t pay that much or have very little services with BNY to warrant moving to State street or NT.
Realistically clients can negotiate fees down and threaten to move business elsewhere but BNY can call their bluff.
Our industry also feels relatively small in the sense that executive leaders and front office folks move from competitor to competitor so one client may leave but another one may join because of how these clients have their networks with individual relationship owners.