BNY Mellon And Lunate Bet Big On Middle East: Launch Alpheya For Cutting-Edge Wealth Management Tech

Bank of New York Mellon Corp BK, along with Lunate, is investing in a new company, Alpheya, to develop a customized wealth management technology platform for wealth and asset managers in the Middle East and North Africa. 

Alpheya, based in the Abu Dhabi Global Market (ADGM), will be funded with a capital commitment of $300 million and is expected to start serving clients in 2024. 

BNY Mellon has a minority share in Alpheya, which is projected to meet the growing demand from wealth and asset managers, private banks, and investment houses in the Middle East.

Notably, there is an increasing demand for an end-to-end digital solution for various services, such as client onboarding, financial planning, portfolio construction, risk management reporting, and analytics in the region.

Roger Rouhana, CEO of Alpheya, said, "Wealth franchises today are managing complex technology environments and a multitude of investment options, that are all supported by more data and analytics and increasingly sophisticated risk management practices." 

Last month, BK reported a Q3 FY23 revenue increase of 2% Y/Y to $4.37 billion, beating the consensus of $4.33 billion. Adjusted EPS was $1.27 (+5% Y/Y), above the consensus of $1.15.

Price Action: BK shares are trading higher by 0.21% at $47.22 on the last check Tuesday.