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Co-op Bank outsources £23bn mortgage book to Capita

The Co-operative Bank has chosen Capita as the preferred bidder to service its £23bn retail mortgage book over the next 10 years.

The proposed deal is worth £325m to Capita and will start in the first quarter of 2015. It involves 660 Co-op mortgage staff transferring to the firm from the bank’s Leek and Plymouth offices with no job losses.

As part of the arrangement, which is subject to approval by the FCA and Co-op board, Capita will take over Co-op’s existing mortgage administrator, Western Mortgage Services.

Capita says it will install new systems to work with 250,000 mortgage customers and brokers through Co-op’s intermediary lending arm, Platform.

Capita is being supported by Unisys and Vertex Financial Services, providing the servicing and mortgage origination platforms respectively. The firm will now have £28bn mortgage assets under management.

Co-op Bank chief executive Niall Booker says: “Our aim is to become a more efficient bank that is better placed to serve our individual and SME customers, with values and ethics at the heart of everything we do. Developing our core retail mortgage business is a key part of this strategy.

“It is vital we improve our processes, consolidate and utilise up to date mortgage systems and, as a smaller bank, ensure we can respond nimbly in a competitive market, mindful of the impact of increased regulation to our cost base.”

Capita chief executive Andy Parker says: “Retail banking is facing unprecedented business and regulatory challenges and Capita is therefore focusing strongly on developing capacity to support this market.

“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.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Yet another administrative disaster waiting to happen. The haven’t been branded “Crapita” by Private Eye magazine for nothing!!

  2. God forbid!

    Mortgage administration! Ask a Connaught investor how good Crapita are at mortgages!

    What a complete joke. Almost as good as having a Chairman who was a crack head and an approved person by the FCA.

    Welcome to the world when the lunatics have taken over the asylum!

  3. Just another money making opportunity for Capita and Vertex.

    “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.”

    BBBS I’m afraid. What most existing borrowers want is an annual statement and help when things go wrong. New borrowers want fast service and good rates. Lets hope that the CO-OP clients can benefit from this.

  4. Glad I am not the only one who thinks that way…

    I can only say that in the last 12 years any administration problems I have experienced with providers 90% can be attributed where Capita have been involved… Zurich being the World’s worst!

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