As we slide into what may or may not be one of the worst economic downturns of our generation, as a key vendor to many brokers, portals, exchanges, mobile apps, and real estate syndicators I want to update you on how the team at Prime Trust is handling this crisis.
First, we have set up our entire staff with everything they need to work from home. That includes replicating the same monitors, keyboards, etc that they have here in the office. It includes VPN's so compliance, financial operations and others can work securely. And it includes extensive use of communications and management apps such as Slack, Hangouts, etc. While not the same as being shoulder-to-shoulder in the office, the staff can work virtually with a high degree of effectiveness. And yes, we have sent pretty much everyone home.
Second, we've been operating profitably. That could change of course if our customers business activities take a hit. Will that happen? Too early to tell. Our blockchain customers are doing more activity than ever at the moment. Our escrow customers are still raising capital, and we may see crowdfunding portals pivot to offering debt products instead of equity, which I think would continue to find investors. We have numerous mobile banking apps getting ready to launch, and I don't see that being affected (quite the opposite, as this may be a great opportunity for alt banking apps).
Also, interest income accounts for just 17% of our gross revenue. So the drop in rates doesn't hurt us that badly. Plus we have alternatives to replace that interest income (details coming very soon for our customers).
Now, that said, if business activity (and revenue) do take a dive, we are prepared for that. In the last couple of years we've raised more capital than we need and have plenty of cash in the bank. On top of that, our fixed costs are nominal. And frankly I see opportunity for us, even as bad as it might get.
*** Significantly we have built our own, proprietary core banking system, called PrimeCore. Thus we are not paying per-account fees, basis points on assets-in-custody fees, or other fees to FIS, Fiserve, Jack Henry, SunGard or some other core system. We can hold unlimited retail and institutional accounts at zero cost. Thanks to this, we can hold custody of any quantity of cash, cryptocurrency, stocks, bonds, real estate, private business interests and other assets as zero cost. I don't know of any other financial institution who can say that.
So if the economy does go off the rails, Prime Trust is built not just to survive, but to take advantage of opportunities and thrive. You've made a great choice in us as your key financial partner and vendor, together we will work through these dynamic, uncertain times.