As part of its growth strategy, NY-based The Bank of New York Mellon Corporation (BK - Free Report) announced its intention to expand the workforce at its wealth management unit. The company plans to strengthen the unit by roughly 100 additional positions.
The major 2-year recruiting campaign is expected to increase BNY Mellon’s workforce at the wealth management unit by 50% by the end of 2014. BNY Mellon plans to hire portfolio managers, private bankers and mortgage bankers as well as wealth strategists at its wealth management unit. Furthermore, the company intends to recruit extra sales support staff at the unit.
Through its 2-year hiring plan, BNY Mellon will recruit employees equaling approximately 5% of its current workforce of 1,900 employees.
In the past, BNY Mellon’s wealth management unit made strategic acquisitions to expand its global footprint. Further, the unit is now more focused on increasing its workforce. Moreover, it intends to enter new markets by expanding its geographic footprint and has therefore opened new offices in cities including Dallas, Washington and the Cayman Islands.
BNY Mellon plans to bolster its workforce by opening new offices at its present locations besides operating new offices in other important wealth markets.
In 2008, when U.S. was battered by the financial crisis, the new regulations were implemented. This led to a decline in revenues generated by the companies including BNY Mellon and banking giants like JPMorgan Chase & Co. (JPM - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) . Since then, these companies have been focusing more on wealthy clients to get better regular fees and increase market share.
BNY Mellon’s plan to increase its workforce is expected to strengthen the global distribution capabilities of its wealth management unit. This is expected to auger well for the organic growth of the unit.
However, this might hinder the company’s cost cutting initiatives. The company targets to slash its costs by about $700 million by 2015.
BNY Mellon currently carries a Zacks Rank #3 (Hold). Fifth Third Bancorp (FITB - Free Report) is a better performing bank with a Zacks Rank #2 (Buy).