Newcastle's True Potential to bring in Blockchain technology as turnover soars to £99m
Fintech firm True Potential boosted its turnover to almost £100m last year and will soon be launching a new investment platform powered by Blockchain technology.
The Newcastle asset management company will replace its investment platform this year with a new system that has been built with “Blockchain at its heart”.
The cutting-edge technology works as a digital ledger which stores information about transactions across multiple computers. The system increases security against hackers and can be used to verify the authenticity of payments and their sources.
Blockchain will allow True Potential to process payments incredibly quickly, while increasing security and lowering costs. However, as the first UK asset management company to fully adopt the technology in this way the full extent of its functionality will only be achieved when other companies incorporate it into their systems.
Managing partner David Harrison said: “During 2018 we will replace our current investment platform with a brand-new version, built totally in-house and incorporating Blockchain technology. This will give us total control over trading, technology, reporting and of course costs.
“We will also be the first investment platform in the UK to be using Blockchain at its heart, at first to audit our own systems, but increasingly to interact with others to produce greater clarity and certainty in both the supply chain and our own customer value chain.”
Ian McKenna, director of the Finance & Technology Research Centre, said: “Blockchain technology is beginning to come of age so it is really good to see all it can offer being embraced by a forward thinking financial advice firm who have a long track record of delivering technology enhancements ahead of the rest of the market.
“Driving out cost is a key element in platforms remaining competitive, so embracing Blockchain and the benefits it can bring is a logical step.”
True Potential announced its plans to use Blockchain at the same time as revealing that its turnover soared 42%, from £69.7m to £98.9m, for the year ending December 2017.
The increased profits also allowed the firm to bost its operating profit by 60% from £14.9m to £23.8m.
The firm’s headcount dipped slightly from 147 members of staff to 140.
Mr Harrison said: “Last year turned out to be a remarkable one for True Potential. When we published our last set of results, I said that the future looks particularly bright. That proved to be something of an understatement.”