Interface-driven effects on magnon dynamics are studied in magnetic insulator-metal bilayers using Brillouin light scattering. It is found that the Damon-Eshbach modes exhibit a significant frequency shift due to interfacial anisotropy generated by thin metallic overlayers. In addition, an unexpectedly large shift in the perpendicular standing spin wave mode frequencies is also observed, which cannot be explained by anisotropy-induced mode stiffening or surface pinning. Rather, it is suggested that additional confinement may result from spin pumping at the insulator-metal interface, which results in a locally overdamped interface region. These results uncover previously unidentified interface-driven changes in magnetization dynamics that may be exploited to locally control and modulate magnonic properties in thin-film heterostructures.