JPMorgan and BlackRock are tapping startup Saphyre’s AI tools to automate the opening of custody accounts. The new solution allows for the digitization of account information entries, the pre-population of redundant data, and the elimination of manual processes and wet signatures.

Why should we care?
JPMorgan and BlackRock say the introduction of Saphyre’s tools will streamline burdensome workflows. The custody space includes transactions that are typically more complex than in retail banking, and often involve multiple parties, hard copy documents, faxes, and spreadsheets. With Saphyre’s AI toolkit, JPMorgan and BlackRock expect to save time and money. The need for more automation became more acute during the pandemic, when the process of setting up custody accounts slowed down because of requirements for paper documents and wet signatures, Naveen TV, JPMorgan’s managing director of product development in securities services, told Reuters. Other institutions that offer custody services, including Northern Trust and BNY Mellon, are also embarking on ambitious paths to automate previously paper-dependent processes.