Meet Saphyre, Fintech Disrupting Institutional Finance

Financial automation software developed by fintech Saphyre is disrupting institutional finance.

With institutional finance considered by many to be one of the “last frontiers” of digital transformation, the cracks are finally showing in the legacy systems and disparate processes (think faxes, emails and spreadsheets) that regularly cause headaches and cost overruns for the world’s largest banks and asset managers.

Financial automation platform Saphyre has emerged as the dominant leader over the past two years, with giants such as Blackrock, Northern Trust and BNY Mellon adopting the software to manage trading and account registration. Saphyre used patented interoperable AI technology to transform how institutions handle pre- and post-trade processes in the financial markets.

Saphyre’s trajectory turned into a rocket ship after JP Morgan led an investment of more than $18 million into the company and adopted the platform in its own business. Founded by identical twin founders Stephen and Gabino Roche, we caught up with Gabino to gain insight into the company’s growth story and the lessons learned as founders.

Where did the idea for Saphyre come from?

Gabino Roche: The idea first began at the end of 2015 when JP Morgan asked me to help with a struggling consortium they were involved in. That’s where I discovered the basic structure, a kind of “Rosetta Stone” for data management and memory, for the idea and the philosophy to what would eventually become Saphyre. Up until that point, I had worked a lot at the intersection of technology and finance. I was a tenured member at McKinsey, where I learned how to deliver software products faster to market. I then joined the NYSE as the Managing Director of Application Development. In 2011, I later became a VP at JP Morgan and led a $40 million initiative to reengineer technology processes related to institutional client services.

It was there that I saw the major challenges that financial firms face when it comes to standardizing data and processes such as KYC AML (“know your customer” and “anti-money laundering”) between multiple banks. These were all top-tier companies, and yet among themselves they could not agree on an approach. There were huge inefficiencies due to virtually all banks and asset managers using manual processes to collect pre-trade data without leveraging the right technology.

At the time, my identical twin brother and future co-founder, Stephen, was leading major partnerships and strategic deals here in NYC for a division of AT&T. We had both been entrepreneurs our whole lives and even had a few previous startups that didn’t make it. We recognized the magnitude of the need in the market for a technology solution that could solve these major problems facing financial firms and the enormous costs incurred by their current processes. That’s when we decided to build the Saphyre technology.

How did you start the company in the first place? How long have you bootstrapped?

GR: We are both lousy founders and kept starting the platform until we raised our seed round, which was $18 million led by JP Morgan, in early 2022.

What was the most unexpected obstacle in the early days of building or selling the product?

GR: It’s no secret that the financial industry is not exactly at the forefront of cutting-edge technology. In fact, in many ways, it is almost a final frontier. This is part of what makes the Saphyre solution so exciting, but it also has inherent challenges. Financial institutions are often slow to adopt new technology. That’s partly because of the enormous regulatory scrutiny that companies have to deal with, the acquisitions they’ve made over the years of other firms with their old and outdated systems, and in-house, homegrown technology solutions. This makes them very reluctant to change the way they have been doing things, in many cases for decades.

So there is a lot of trust that needs to be instilled in your solution to gain the trust of the world’s largest banks. The reason Saphyre has become so successful is because we spend time and effort building something that truly transforms the results that businesses get, and we demonstrated a track record of those results with some of the biggest banks and asset managers around the world.

How did you approach building a culture to attract talent to Saphyre?

GR: At Saphyre, we approached building a culture to attract talent by first identifying the core values ​​that were important to us as a company. These values ​​included a strong focus on innovation, collaboration and an urgent passion for our mission to change the financial services industry for the better. We then made sure to incorporate these values ​​into every aspect of the company, from the way we communicate with each other and our customers to the way we structure our teams and projects. We have also emphasized promoting a positive and inclusive working environment, where all employees feel valued and have the opportunity to grow and develop their skills. We also offer flexible working arrangements to appeal to top talent. Overall, by building a strong and engaging culture, we are able to attract and retain top talent who share our passion and drive to succeed.

What leadership lessons have you learned along the way?

GR: Stephen and I have learned many valuable leadership lessons as Saphyre has grown and developed. Some of these include:

1. The importance of clear communication: Communication, both within teams and across the organization, helps ensure that everyone is on the same page and working towards a common goal.
2. The need for adaptability: In a fast-paced start-up environment, plans change frequently. Being able to adapt and pivot as needed is critical to success.
3. The power of a positive culture: A positive and inclusive culture helps attract and retain top talent, increase employee engagement and productivity, and foster a sense of community.
4. The role of innovation: The Fintech industry is rapidly changing, and to stay ahead of the curve, we need to continuously innovate and stay up-to-date with industry trends.
5. The Importance of Transparency: Building trust with employees and customers is critical to the success of any business. Transparency in decision-making and our operations helps to build trust and promote a positive work culture.
6. Empowering employees: Giving employees autonomy and confidence in their abilities builds greater job satisfaction, engagement and loyalty.

What does 2023 mean for Saphyre?

GR: In one word? Growth! We have a big deal to be announced in the first half of 2023 that will further disrupt the financial services industry. We also expect more financial firms to join the platform as we continue to gain traction and establish ourselves as a leader in the fintech industry. Strategic alliances with other companies or organizations in the fintech, financial services or technology space may also be an opportunity, as these partnerships help Saphyre enter new markets and expand our reach.