BNY Mellon

Sources of moat by component and durability. Intangible assets (score ~80): 240‑year brand, banking licenses, trusted fiduciary role and control frameworks valued by regulators and systemically important clients.

Efficient scale (score ~88): global custody and collateral management are markets where only a handful of players can economically serve large institutions; fixed costs in technology, compliance and operations create natural barriers.

Cost advantages (score ~85): scale supports lower unit costs in settlement, asset servicing, data and connectivity, allowing competitive pricing while sustaining margins. Switching costs (score ~90): migrations are multi‑year, risky and expensive; BNY’s $57.8T AUC/A, 35% non‑US revenue mix and deep workflow integration raise client stickiness.

Network effects (score ~60): connectivity to issuers, agents, CCPs and counterparties adds value as more participants use the platform, though effects are weaker than card networks. Weighted together, these support a durable moat; risks include fee pressure from peers, DIY infrastructure by mega‑managers, and technology disruption.