One year ago today, on 18 May 2016, wealth management IT firm Third Financial gained FCA regulation for its new platform business, Tercero Cloud.
The business then officially launched on the 1 November 2016 and in that time has signed up seven clients, with five already live. Stewart Foster, chief executive of Third Financial, told thewealthnet he expects this growth to continue. He predicts that by the end of 2017 there will be 10 clients signed up and £1 billion of assets on the platform.
The platform offers custody, clearing and electronic dealing services.
Mr Foster says that now the platform is up and running with its first set of clients, the firm is moving into the second stage.
“This has been a great race to add on clients,” he explained. “We wanted to build it slowly and prove the quality of the service with our first set of clients. Now we are starting to build up the business.”
Tercero Cloud is a wholly owned subsidiary of Third Financial. Mr Foster says it will target wealth management firms with under £1 billion of assets under management. This is the section of the market that Third Financial has targeted for its software business over the years, and he believes that these connections will help fuel growth on the platform.
Mr Foster believes that Tercero Cloud has three strong advantages that are attracting clients. Firstly as a new offering it has “modern technology”. The second and third are competitive pricing and the level of service the firm offers.
“There is a single all in price,” he said. “All clients are given a personalised service manager.”
Mr Foster says that another reason why the business has been a success is his experience in starting companies.
“When starting a new company you never know what will happen one day to the next,” he said. “This was true for starting up the platform business too. It was very difficult and costly. We had to build a whole new infrastructure.”
However, Mr Foster said he looking forward to growing the business now that this hard work has been completed.