Now that Bank of New York Mellon Corp. has closed its acquisition of PNC’s Global Investment Servicing Inc. the New York-based company has its sights set abroad for further growth of its asset servicing business.

“International expansion very clear is the opportunity,” said Jim Palermo, the chief executive officer of BNY Mellon’s asset servicing business. “We see growth opportunities in two significant areas – both geographically and through global financial institutions. Global financial institutions are clearly the fastest growing segment and a key driver behind the PNC GIS deal.”

The company has identified several international markets over the past six to twelve months that it would like to expand into over the next two years, Palermo said, including Germany, Australia, China, South Korea, India, Brazil and the Middle East.

BNY Mellon expects to make more acquisitions to expand in these regions. Palermo said in August it expects to close its acquisition of Germany’s BHF Asset Servicing, which would move BNY Mellon from the 13th largest to the second largest asset servicer in Germany.

“We think that the German market is very important and very strategic for us,” he said. “It is the fourth largest economy in the world and they have a substantial pension and fund business.”

The acquisition of PNC’s Global Investment Servicing business, which closed Thursday, doubled BNY Mellon’s European asset base and made it the second largest provider of fund accounting, administration and transfer agency services to fund managers globally. It also expanded its industry-leading securities servicing and alternative investment services businesses worldwide; and enhances its managed account platform, performance reporting capabilities and business intelligence tools for Pershing’s broker-dealer and advisory business.

BNY Mellon now has over $23.2 trillion in assets under custody and administration globally. The acquisition, which closed for $2.31 billion including $1.57 billion of stock and repayment of intercompany debt from PNC, added $855 billion in assets under administration, including $460 billion in assets under custody, and doubles the number of funds serviced for accounting and administration. 

In addition to adding significant scale, the acquisition gives BNY Mellon a strong presence with global financial institutions, Palermo said. He said that Global Investment Servicing asset servicing business “with fund complexes and financial institutions is really unmatched in the industry.”

Palermo said that he thinks that there will be a lot of domestic cross-selling opportunities for BNY Mellon as a result of the PNC acquisition. Since the deal was announced five months ago, BNY Mellon has been identifying a slew of synergies, he said.

“There are just a lot of complimentary capabilities that each company brings to the table now,” he said. “They were stronger in fund administration and fund accounting services and we are a larger custodian. … There are tremendous revenue opportunities here.”