NelsonHall’s Loan BPO Vendor Assessment for CSC is a comprehensive assessment of CSC’s loan BPO offerings and capabilities, designed for:
Sourcing managers monitoring the capabilities of existing suppliers of capital market process outsourcing and identifying vendor suitability for loan 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.
Key Findings & Highlights
This NelsonHall assessment analyzes CSC’s offerings and capabilities in retail banking BPO. CSC is one of a number of mortgage and loan BPO companies analyzed in NelsonHall’s comprehensive industry analysis programs.
Prior to 1990, CSC provided BPO services to banks for credit compliance and credit insurance; CSC entered that business with a highly automated service, which relied on understanding a bank’s IT environment. At the time, CSC did not consider itself to be in BPO services, and BPO was not a priority for it.
CSC entered the loan BPO business in 1990; in the early 1990s there was a banking crisis, which created many distressed real estate assets (primarily commercial real estate). At that time the U.S. government, primarily via Resolution Trust Company (RTC), acquired distressed assets and distressed banks to manage recoveries on those assets. RTC required private sector help to manage the very large volume of assets; CSC acquired Logic Inc. in 1990 to pursue the RTC business as a BPO line of business.
Over time, CSC refocused its banking BPO business, as RTC was wound down in the late 1990s, away from government clients to private sector clients. Specifically, CSC’s outsourcing strategy for banking now focuses on delivering services as a third party loan servicer via SaaS and BPaaS. CSC is currently focused on consumer loan BPO and backup services for securitized portfolios.
CSC delivers dedicated loan services from three primary delivery centers:
Irving, TX: 180 FTEs
Noida: 10 FTEs
Vadodara (West coast, India): 50 FTEs (data entry).
CSC delivers common services from three primary onshore delivery centers:
CSC’s primary targets are North American banks:
Tier one banks: half of existing clients and a core target audience of CSC solutions
Community banks: for access to latest functionality and low cost of delivery
De novo auto lenders and finance companies: for access to latest functionality and low cost of delivery.
CSC has built on its 30 years of experience as a software vendor and IT outsourcing provider to the retail banking industry, to drive its loan BPO business. Since 1990 CSC’s loan BPO business has waxed and waned as industry conditions and participants have changed. Over the past 25 years, CSC has retained and built its domain expertise and adapted to changing client requirements.
Today CSC has a consumer loan BPO business which is primarily built around auto loans; this remains an underserved market by BPO vendors, allowing CSC to offer clients third party support with domain expertise, supported by the its financial strength.