Capita preferred for Co-op Bank mortgage contract

11 November 2014 Capita preferred bidder for The Co-operative Bank mortgage operations outsourcing contract The Co-operative Bank has selected Capita plc (`Capita') as preferred bidder totransform its mortgage servicing operation in the UK. Subject to final terms,the approval of the Bank's board, and regulatory approval, the deal would beworth up to £325m over 10 years and is anticipated to start in the firstquarter of 2015. Under the terms of the deal, one of the largest in a decade if agreed,comprising more than 250,000 mortgage customers and £23bn of lending, Capitawould take over and transform The Co-operative Bank's mortgage servicingoperations in Leek in Staffordshire and Plymouth. It would install new systems- designed to drive efficiency while simplifying business processes in aregulated environment - to improve the experience for The Co-operative Bank'scustomers and support business growth. As part of the deal Capita would acquire the people and assets of WesternMortgage Services Limited, The Co-operative Bank's mortgage administrationbusiness. Andy Parker, Capita Chief Executive, said: "Retail banking is facingunprecedented business and regulatory challenges and Capita is thereforefocusing strongly on developing capacity to support this market. We haverecently acquired Crown Mortgage Management (now Capita Mortgage Services) andcan draw upon our existing and wide ranging commercial debt-servicingcapabilities and our heritage of large scale customer service transformationacross a range of industries facing similar challenges. Capita would work withThe Co-operative Bank to deliver an enhanced service for customers, by, forexample, using analytics and insight to give them the experience they want andexpect from their mortgage provider. "Capita's ambition is to draw on its business process and customer servicetransformation expertise to become the leading end-to-end mortgage processingpartner delivering real value to financial services clients." Niall Booker, Chief Executive at The Co-operative Bank, said: "Our aim is tobecome a more efficient bank that is better placed to serve our individual andSME customers, with values and ethics at the heart of everything we do.Developing our core retail mortgage business is a key part of this strategy. "It is vital we improve our processes, consolidate and utilise up to datemortgage systems and, as a smaller bank, ensure we can respond nimbly in acompetitive market, mindful of the impact of increased regulation to our costbase. "These proposals to partner with Capita would support our plans for growth inretail mortgages and would enable us to continue to deliver high standards ofservice to our customers and brokers." The Co-operative Bank would transfer around 660 people, technology systems andcapabilities to Capita, predominantly in Leek and Plymouth. Capita will be supported by Unisys and Vertex Financial Services, providingservicing and mortgage origination platforms respectively. The deal and acquisition, which The Co-operative Bank is briefing its employeeson today, is subject to a final contract being signed, approval by the Bank'sboard and approval by the Financial Conduct Authority. For further information:Capita plcTel: 020 7799 1525Andy Parker, Chief Executive OfficerShona Nichols, Corporate Communications Director Media enquiries only:Capita press officeCaroline MooneyTel: 020 7654 2152 or 020 7654 2399 (out of hours)Email: caroline.mooney@capita.co.ukTwitter: @CapitaPress Note to editors Capita plc is the UK's leading provider of BPO and integrated professionalsupport solutions. With 64,000 people at over 400 sites, including 73 businesscentres across the UK, Europe, India and South Africa, the Group uses itsexpertise, infrastructure and scale benefits to transform its clients'services, driving down costs and adding value. Capita is quoted on the LondonStock Exchange (CPI.L), and is a constituent of the FTSE 100 with 2013 revenueof £3.9 billion. Further information on Capita plc can be found at:www.capita.co.uk About The Co-operative Bank The Co-operative Bank plc provides a full range of banking products andservices to almost 5 million retail and SME (Small and Medium SizedEnterprises) customers. The Bank is committed to values and ethics in line withthe principles of the co-operative movement.