11 November 2014
The Co-operative Bank has selected Capita plc (‘Capita’) as preferred bidder for a 10 year contract to transform its mortgage servicing operation in the UK.
Under the terms of the deal, the largest in a decade if agreed, Capita would take over and transform The Co-operative Bank’s mortgage servicing operations in Leek in Staffordshire and Plymouth. It would install new systems designed to drive efficiency while simplifying business processes in a regulated environment. In addition it would improve the experience for The Co-operative Bank’s customers and support business growth, using analytics and insight to continue to provide innovative customer service.
The proposals would support The Co-operative Bank’s plans for growth in retail mortgages and to enhance the experience for its 250,000 mortgage customers, and brokers through its intermediary lending arm, Platform.
As part of the deal Capita would acquire the people and assets of Western Mortgage Services Limited, The Co-operative Bank’s mortgage administration business.
Andy Parker, Capita Chief Executive, said: “Retail banking is facing unprecedented business and regulatory challenges and Capita is therefore focusing strongly on developing capacity to support this market. We have recently acquired Crown Mortgage Management (now Capita Mortgage Services) and can draw upon our existing and wide ranging commercial debt-servicing capabilities and our heritage of large scale customer service transformation across a range of industries facing similar challenges. Capita would work with The Co-operative Bank to deliver an enhanced service for customers, by, for example, using analytics and insight to give them the experience they want and expect from their mortgage provider.
“Capita’s ambition is to draw on its business process and customer service transformation expertise to become the leading end-to-end mortgage processing partner delivering real value to financial services clients.”
Capita will be supported by Unisys and Capita Mortgage Software Solutions, providing the servicing and mortgage origination platforms respectively.
Steve O’Loughlin, UK sales director, financial services, at Unisys said: “Unisys is delighted to have been selected by Capita as its IT partner of choice. Our proven scale and migration capability would add significant assurance and this, coupled with our managed service capabilities, would provide a safe, secure and robust platform from which to grow the business.”
Chris Thompson, CEO at Capita Mortgage Software Solutions, said: “This is an excellent opportunity for Capita Mortgage Software Solutions, which would reinforce our strong position as provider of technology to large financial institutions. Technology has a huge part to play in ensuring a positive customer experience and we are delighted that Capita has chosen Capita Mortgage Software Solutions mortgage origination software to support the bid.”
The Co-operative Bank would transfer around 660 people, technology systems and capabilities to Capita in Leek and Plymouth, with the deal bringing Capita’s total mortgage assets under management to £28bn.
The deal is subject to contract and approval by the Financial Conduct Authority and The Cooperative Bank’s board.