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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.

Mortgage and Loan BPO Market Assessment and Forecast

Market Analysis

by Andy Efstathiou

published on Mar 06, 2015

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Report Overview:

NelsonHall's market analysis of mortgage and loan BPO consists of 91 pages.

The mortgage and loan BPO market continues to grow as organizations seek to adapt to changing regulations, cut their cost of operations, improve cash flow, improve management effectiveness, improve customer satisfaction and respond more agilely to market conditions.

Who is this Report for:

NelsonHall's "Mortgage and Loan BPO Market Assessment and Forecast" report is a comprehensive market assessment report designed for:

  • Sourcing managers investigating sourcing developments within the retail banking, capital markets, and financial industry
  • Vendor marketing, sales and business managers developing strategies to target service opportunities within the retail banking, capital markets, and financial industry
  • Financial analysts and investors specializing in the retail banking, capital markets, and financial sector.

Scope of this Report:

The report analyzes the global market for mortgage and loan BPO services and addresses the following questions:

  • What is the current and future market for mortgage and loan BPO services?
  • What is the size and growth of the mortgage and loan BPO market by market segment?
  • Within mortgage and loan BPO services, which processes are emerging strongly?
  • What are the market segments for mortgage and loan BPO services and their characteristics? What are the drivers, benefits, and inhibitors for each segment? What are vendor capabilities by segment?
  • What technologies and platforms are being utilized and what are the implications by market segment?
  • What are vendor challenges and critical success factors by market segment?
  • How vendors are positioned within each mortgage and loan BPO market segment?
  • Additional topics include: contract lengths; pricing models; partnerships; acquisitions; delivery center locations and the use of offshoring; vendor targeting by client size, geography, and industry.


Key Findings & Highlights:

The mortgage and loan BPO market remains dominated by North America, which accounts for ~66% of client spend. EMEA and ROW are moving rapidly from emerging to established market status in mortgage and loan BPO.

The mortgage and loan BPO market is well established in mature markets, especially the U.S., and U.K.

The primary client profile is:

  • Tier 1 banks and M&L service vendors selling to residential mortgagees remain the primary adopters (~90%+)
  • Single country support for origination, servicing, and elemental services remains the primary service bundle (~85%+ of revenues).

Clients are buying service bundles including:

  • Primarily manual paper processing and acquisition and review of third party supplied documentation
  • Process optimization to improve efficiency, accuracy, flexibility, and reduce TAT.

Vendors have tended to focus on individual country markets for their services, primarily the U.S. However globally, offshore and nearshore delivery still dominates in the mortgage and loan BPO market, with >90% of service provider employees based in India. Nearshore delivery locations are not yet an important part of this market.

The leading vendor selection criteria are domain or sector expertise, knowledge of the client's business, process transformation and change management capability, geographic delivery footprint, and the ability to achieve a strategic partnership with the client organization.

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