Infosys and Stater Mortgage BPaaS Solutions

Supporting digital mortgage transformation in response to market disruption

The global economy, and financial services, are at an inflection point in history. Businesses must keep operating in a socially distanced world. All are affected, some positively, most negatively, and some both. This is the case for residential mortgage lending, where lowered interest rates to keep the economy growing have made home ownership more affordable, but in-person signing of paper documents is both inefficient and potentially risky. For loan servicing and collections operations, job losses have led to helpful loan forbearance programs, but servicing operations and contact centers are unprepared to manage the huge volume spike in customer communications and document processing. Moreover, loan default risk is rising and collections departments need to transform staffing, processes, and technology to prepare for this long-term change in the lending cycle.

In this context that Infosys briefed Celent in July 2020 on the firm’s digital mortgage transformation strategy, their 2019 strategic partnership with ABN AMRO Group N.V. to manage and expand Stater in Europe, and other capabilities in the mortgage lending domain. Infosys Ltd. has made strategic investments in residential mortgage technology services, a mortgage servicing platform, and new, AI-driven collections technology. These capabilities will help mortgage lenders in Europe, North America, and Asia adapt, compete, and grow through this period of rising loan delinquencies, new operational risks, and increased contact center volume in an era of social distancing, and digital disruption. In 2019, Infosys acquired a 75% stake in Stater, ABN AMRO’s administrative mortgage services provider, which offers services for over 1.3 million mortgage loans to more than 30 mortgage providers in the Dutch market. ABN AMRO retained 25% stake and remains a strategic shareholder.

Key takeaways:

  • Infosys has deep mortgage domain expertise with global delivery capabilities, through a combination of IT services, software platforms, and componentized IT frameworks to help financial institutions augment, restructure, or replace their mortgage lending technology and operations.
  • Stater’s mortgage business process as a service (BPaaS) capability provides financial institutions the opportunity to achieve deeper digital transformation and cost takeout to maintain profitability during periods of slower growth and to free up resources for other digital projects.

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