Lessons from Buy & Build

FinTech Innovation, Buy-and-Build Strategies, and Modernising Legacy Systems

In a special episode of FinTech Focus TV, recorded live at the prestigious TradingTech Briefing in New York City, Toby Babb welcomes back a familiar face: Matt Rafalski, Head of Sales, North America at Velox. With a career spanning some of the most transformative years in financial technology, Matt returns to share his expert insights into the state of capital markets technology and the rapid evolution reshaping the FinTech sector.

As always, FinTech Focus TV offers a deep dive into the trends, technologies, and talent defining the future of financial services. And in this episode, Matt and Toby explore some of the most pressing topics in FinTech: the rise of buy-and-build models, legacy system transformation, vendor-client dynamics, market volatility, and the integration of artificial intelligence. For Harrington Starr, a leading FinTech recruitment business, the insights from this episode underscore the critical importance of talent in executing technology-driven change.

Capital Markets Technology and the Evolution of Buy-and-Build Models

The episode begins with a discussion around a key industry shift: the move from the traditional "buy or build" conundrum to an increasingly adopted "buy and build" model. According to Matt, this hybrid approach is no longer just a trend; it’s become a dominant strategy across capital markets. Rather than choosing between purchasing software or building systems in-house, institutions are doing both. They are buying core solutions such as order management systems (OMS) and then customising and building additional components around them using agile platforms like Velox.

This shift is driven by the need to reduce execution risk. As Matt points out, internal builds often suffer from delays, overruns, and inconsistency. But by using a unified development platform, teams are empowered to work in a structured, scalable way. Velox’s application development platform, for instance, enables firms to rapidly create applications in Java, using a shared codebase that avoids the chaos of fragmented or legacy infrastructure.

With capital markets becoming increasingly complex, time to market and cost control have emerged as key competitive differentiators. The buy-and-build model offers both. According to Matt, Velox has seen strong growth in the past three years as more financial institutions adopt this approach to maintain agility without sacrificing stability.

Legacy System Modernisation: A Core FinTech Challenge

A recurring issue for many FinTech and capital markets firms is how to handle legacy systems. Outdated infrastructure, long-standing technical debt, and rigid architectures remain barriers to innovation. Matt highlights legacy modernisation, also referred to as legacy innovation, as one of the biggest challenges, and yet one of the most pressing priorities, for today’s institutions.

Many of Velox’s client projects begin with legacy migration. Instead of rip-and-replace strategies that involve high risk and cost, Velox offers a more measured approach, allowing clients to retain certain systems while modernising around them. This is where the buy-and-build model really excels, enabling incremental transformation with reduced business disruption.

Legacy systems might have served their purpose over the years, but the increasing pace of change in FinTech has exposed their limitations. Matt admits that selling the idea of legacy modernisation is not always easy, particularly in conservative, risk-averse financial organisations, but the results speak for themselves. With better time to market, lower total cost of ownership, and increased developer efficiency, more institutions are making the leap.

Redefining the Vendor-Client Relationship in Financial Technology

Another key insight from the conversation is the changing nature of vendor-client relationships in the FinTech sector. Historically, these relationships were transactional and at times, adversarial. Vendors delivered software, and clients were often left to manage integration, development, and upgrades alone.

Matt explains that this dynamic has shifted. Today, success requires true partnership. Velox embeds itself in its clients’ processes, aligning on goals, working collaboratively on delivery, and providing ongoing support and education. This partnership-first model is increasingly critical in a market where transformation projects are complex, high-stakes, and require deep domain knowledge.

For vendors, this evolution means more than simply selling a product. It requires strategic alignment, empathy, and long-term commitment. For clients, it means having a trusted advisor who is invested in their success. As Matt points out, this kind of partnership lays the foundation for scalable transformation and stronger business outcomes.

How FinTech Platforms Can Help Navigate Market Volatility

Market volatility has become the new normal. With geopolitical shifts, economic uncertainty, and regulatory developments unfolding at unprecedented rates, capital markets firms are under pressure to adapt. This environment demands real-time decision-making, agile development, and resilient systems.

Matt reveals that Velox is responding to this volatility with new client engagements focused on real-time risk monitoring. One such project involves building a risk monitor for a leading institution to provide visibility into real-time exposures, which is vital in today’s fast-moving markets.

He stresses that such projects are no longer considered ‘nice to have’. They are mission-critical. Financial institutions need tools that are not only reliable but also capable of adapting quickly to shifting circumstances. Development platforms like Velox play a central role in this adaptation by enabling rapid prototyping, deployment, and iteration.

ETF Innovation and Custom Development in Capital Markets

A major area of growth for Velox has been in exchange-traded funds (ETFs), which continue to experience significant momentum across global capital markets. Velox’s platform is asset class agnostic, supporting clients across equities, structured products, and ETFs. In the ETF space, the company has developed bespoke tools for create/redeem processes and market-making workflows, enabling clients to participate in the growing demand for tailored investment products.

Matt explains that Velox helps clients build bespoke tools that align with their internal workflows, rather than forcing them into rigid software structures. This flexibility is crucial in a space as dynamic as capital markets. And it’s why Velox’s buy-and-build model resonates so well, firms can implement new tools as the market evolves, without being locked into a single vendor’s roadmap.

Order management system enhancement is another area where Velox excels. Clients can continue using their legacy OMS while enhancing its capabilities with new modules built on the Velox platform. This flexibility significantly reduces the barriers to modernisation.

Client Wins and What’s Ahead for Velox

Although confidentiality agreements prevent Matt from naming specific clients, he confirms that Velox has recently secured major partnerships with both tier one and tier two banks in London. These projects span clearing, allocation, ETF market making, and real-time risk monitoring. These wins reflect the confidence the market has in Velox’s offering and the relevance of its platform in modern capital markets.

Looking ahead, Matt shares that Velox is investing in client education, training, and support to deepen relationships and ensure long-term success. The goal is to not only onboard new clients but to expand usage within existing institutions. As capital markets evolve, Velox plans to evolve with them, maintaining a sharp focus on client needs and industry trends.

AI in FinTech: Separating Hype from Reality

No discussion about FinTech in 2025 would be complete without addressing artificial intelligence. Matt is quick to distinguish between real, value-driven AI and superficial claims. With so many firms rebranding themselves as “AI-first” without substance, buyers are becoming more discerning.

Clients now ask critical questions: What type of AI do you use? Is it proprietary or third-party? Is it integrated into your platform or simply bolted on? Matt welcomes this scrutiny, believing that educated buyers push the industry forward. Velox, for its part, focuses on meaningful integration of AI into its development platform, enabling clients to work smarter, not just faster.

He also emphasises the importance of transparency. In a marketplace saturated with marketing noise, trust and credibility have become differentiators. FinTech platforms that genuinely deliver value through AI and can demonstrate it are the ones that will stand out.

Cultural Shifts Driving FinTech Change

Toby raises a thought-provoking point: much of the pressure for change in enterprise technology is being driven by consumer expectations. In our personal lives, we enjoy seamless apps, intuitive interfaces, and on-demand services. These experiences are reshaping expectations in the workplace.

Matt agrees. He believes this cultural shift is pushing financial institutions to reconsider long-standing technology decisions. Firms are moving away from one-size-fits-all enterprise systems and towards modular, integrated solutions. Platforms like Velox are thriving in this environment because they offer agility without sacrificing reliability.

This trend is also transforming procurement processes. Where once firms would choose the biggest name or longest-standing provider, they are now prioritising flexibility, innovation, and time to market. For Velox and for the FinTech sector more broadly, this signals a new era of intelligent, user-focused enterprise technology.

Advice for FinTech Firms: Partnering and Hiring for Success

One of the clearest takeaways from this episode is that transformation in FinTech is not just about technology, it’s about people. Matt repeatedly emphasises the importance of working with the right partners, hiring the right talent, and building teams that understand the nuances of capital markets.

For firms embarking on digital transformation, choosing a partner like Velox can reduce risk and accelerate results. But that partnership must be matched by internal capability. Hiring individuals who understand both the technology and the business context is critical. Whether it’s developers, sales leaders, or programme managers, having the right talent can make or break a transformation initiative.

This is where Harrington Starr plays a vital role. As a leading FinTech recruitment agency, we understand the specific needs of firms undergoing change. From legacy modernisation to AI implementation and everything in between, we help clients find the professionals who can drive progress.

FinTech Recruitment and the Future of Capital Markets

This episode of FinTech Focus TV  highlights a fundamental truth about modern financial services: transformation is constant, and talent is the catalyst. From ETF innovation and risk monitoring to buy-and-build models and AI integration, today’s firms face both unprecedented challenges and unparalleled opportunities.

At Harrington Starr, we’re committed to helping our clients succeed in this environment. Whether you’re a FinTech business scaling operation, a capital markets firm modernising your technology stack, or a professional seeking your next challenge, we can help you make the right connections.

The conversation between Matt Rafalski and Toby Babb is more than a podcast, it’s a blueprint for what comes next in FinTech. For those shaping the future of financial technology, this episode is essential viewing.

Harrington Starr is a leading FinTech recruitment company specialising in connecting exceptional talent with world-class financial technology businesses across the UK, US, and Europe. Since our founding in 2010, we’ve built a reputation for delivering expert hiring solutions across every vertical of the FinTech space, including software engineering, infrastructure, data, quantitative finance, cyber security, product, and sales and marketing. With offices in London, New York, and Belfast, we serve both scale-up innovators and established global institutions, offering permanent and contract recruitment tailored to the specific needs of our clients. Our deep industry knowledge, extensive candidate networks, and values-driven approach ensure we don’t just place talent, we build lasting partnerships that drive growth, transformation, and competitive advantage in the fast-moving FinTech sector.