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Andy Efstathiou

Andy is the Banking Sourcing Research Director at NelsonHall where he has global responsibility for Retail and Commercial Banking BPS, Capital Markets BPS, and RPA, AI, and FinTech services in Banking, including consulting, design & deploy, and operations support.

Accenture - Mortgage and Loan BPO

Vendor Analysis

by Andy Efstathiou

published on Mar 04, 2015

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Report Overview:

This NelsonHall assessment analyzes Accenture's offerings and capabilities in capital markets BPO. Accenture is one of a number of reference data management BPO companies analyzed in NelsonHall's comprehensive industry analysis programs.

Who is this Report for:

NelsonHall's Mortgage and Loan (M&L) BPO vendor assessment for Accenture is a comprehensive assessment of Accenture's M&L BPO offerings and capabilities, designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of capital market process outsourcing and identifying vendor suitability for M&L BPO RFPs
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the support services sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of Accenture's M&L BPO offerings, capabilities, and market and financial strength, including:

  • Identification of the company's strategy, emphases and new developments
  • Analysis of the company's strengths, weaknesses and outlook
  • Revenue estimates
  • Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
  • Analysis of the company's offerings and key service components
  • Analysis of the company's delivery organization including the location of delivery locations.

Key Findings & Highlights:

Credit services have been a focus (pre-BPO services) for Accenture since its start as a separate consulting firm. Today Accenture's credit practice, consisting of consulting, IT services, BPO and software has over 100 clients, of which 60 buy credit BPO services.

Accenture has periodically delivered individual credit BPO services since 2000, but aggressively committed to credit BPO services in 2011, when it acquired Zenta, which enabled it to establish a permanent presence in credit BPO. In 2013, Accenture then acquired Mortgage Cadence to utilize its loan origination platform. Subsequently in November 2013, Accenture acquired Vivere Brazil, a software vendor to provide similar technology enabled BPO for the Brazilian market.

Accenture entered the mortgage and loan (M&L) BPO business because it believes that:

  • Lenders will continue to struggle with old systems, inefficient processes, low customer satisfaction, high cost-to-serve per loan, and increased regulatory change in a continuously dynamic and unpredictable market environment
  • It can integrate and scale the required capabilities, including SAFE Act licenses on and offshore, to deliver a better, faster, cheaper mortgage loan processing than lenders can do on their own.

Accenture's M&L BPO services are delivered out of its financial services (banking, capital markets, and insurance) operating group, which has FY 2014 revenues of $1,673m (a 10.1% increase y/y). The remainder of this profile focuses on M&L BPO services.

Accenture M&L BPO has delivery centers as follows:

  • Residential mortgage lending:
    • Charlotte, NC
    • San Antonio, TX
    • Chennai
    • Mumbai
    • Manila
    • Sao Paolo
  • Commercial real estate and non-real estate:
    • Charlotte, NC
    • New York, NY
    • Chennai
    • Mumbai.

Accenture's primary targets for M&L BPO are:

  • Residential mortgage:
    • Top 30 mortgage lenders, servicers and strategic opportunities
    • Retail/wholesale/correspondent
  • Commercial loans:
    • Top 20 U.S. banks
    • Fortune 100 companies
    • Top REITS
    • Equity investors
    • Pension funds
    • Hedge funds.

Accenture has focused its M&L BPO offerings on a few specific processes heavily centered on collateral support. It acquired much of its collateral support services with the acquisition of Corelogic India.

Accenture has a strong IT services legacy. It intends to support clients and prospects in their stated intention to modernize their mortgage platforms. Accenture believes that the loan processing market is being driven by industry changes, which will require significant reductions in cost and increases in efficiency for successful lenders to remain competitive. Accenture's strategy in M&L BPO is to:

  • Target opportunities where clients are willing to change their operations to improve revenue growth and cost to serve per loan, by leveraging Accenture's capabilities
  • Target comprehensive services (primarily origination and servicing) which are highly cyclical, to provide operational flexibility for clients to meet very wide swings in transaction volumes
  • Target component services where very high volume and specialization can provide economies of scale to clients.

Table of contents:

Table of contents:

  • Background
  • Revenue Summary
  • Key Offerings
  • Residential Mortgage BPO
  • Commercial Credit BPO
  • Delivery Capability and Partnerships
  • Delivery
  • Pricing and Contracts
  • Changes to Operations
  • Platforms and Intellectual Property
  • Target Markets
  • Strategy
  • Strengths and Challenges
  • Strengths
  • Challenges
  • Outlook

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