little fish Posted November 12, 2014 Share Posted November 12, 2014 (edited) £23b mortgage book outsourced to Capita. So that's TV licensing, electronic tagging of prisoners, collecting car tax and a whole host of public sector back office functions they run now. An administrative disaster on the way or the co-op disengaging. "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. http://www.moneymarketing.co.uk/news-and-analysis/mortgages/co-op-bank-outsources-23bn-mortgage-book-to-capita/2016150.article http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2380623/capita-closes-in-on-gbp325m-deal-with-the-co-operative-bank Edited November 12, 2014 by little fish Quote Link to comment Share on other sites More sharing options...
spyguy Posted November 12, 2014 Share Posted November 12, 2014 Capita is the 'under the carpet' option of failed corporate strategies. An organisation - public or private - makes a big hoohaa about entering a market. Then fails and loses buckets of cash. Then tries to sell the business as a going concern. Competitors don't touch the business as its 1) a mess, 2) unprofitable 3) hoping it'll go under so they can raise margins. Company panics. Company approaches Capita. Capita ask for big wedge to continue operation for 5 years. Capita promise they can run the business and will keep staff. Business goes to Capita. Capita make original business look like operational geniuses. 5 year grind starts. Capita sack staff. Capita gouge customers. After 5 years, Capita pay the remaining customers to go somewhere else and close the business. Quote Link to comment Share on other sites More sharing options...
200p Posted November 12, 2014 Share Posted November 12, 2014 Quote Link to comment Share on other sites More sharing options...
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