FR: What is Vertex’ main involvement in the FS industry at the moment?
Vertex has been in the financial services sector as long as it has because we have diverse skill sets in more than one area. We offer a genuinely cradle-to-grave service, from origination of new loans all the way through managing down legacy books, and we provide both tech and people.
We work for clients from small building societies all the way up to large retail and investment banks, and we have some large-scale and geographically widespread operations: for example, 70% of the mortgage market in Canada is on our platform.
We are product-agnostic, servicing residential, semi-commercial, buy-to-let, second charge and non-performing loan portfolios. We also have the ability to support the savings market, and through our Jessop Fund Management Ltd brand we offer pensions administration and fund management services.
FR: You’re celebrating your 25th anniversary this year – how has servicing changed since the company started?
We have seen a multitude of changes: MCOB, TCF and Pre Action Protocol to name but a few from very recent times. For each of these we have maintained a fully compliant solution catering for each of our customers’ needs as they have adapted to the ever changing regulatory requirements.
We have also seen a big change in the past two years at the new lending end of the market. Existing lenders’ product criteria have altered dramatically; consumers’ choice of lender has shrunk; the distribution of lending has altered (smaller building societies writing new business); regulation has placed more pressure on product innovation; and finally of course, new players – often household names – have entered the market.
We’ve survived all these challenges and managed to grow with the times – most recently we have helped to deliver the biggest new entrant to the mortgage space in recent times: the new mortgage products from our client Tesco Bank.
We helped to successfully launch Tesco Bank’s mortgage products to market, and we are providing an end-to-end service for them, starting with our market leading origination capability.
FR: Vertex has rebranded this year – what was the thinking behind that?
In recent years Vertex had made a conscious decision to focus on consolidating and rationalising our offer, rather than actively investing in and promoting our brand.
Now that we have proven our enhanced mortgage origination platform in action with the launch of Tesco Bank mortgages, we felt it was time to focus more on marketing and business development. We knew that our business would this year be in the best position for future growth in a very different market, so the rebrand is well timed.
FR: Where do you expect to see the most growth in future?
From an industry perspective, we expect the focus to be on credit management and special servicing as lenders continue to manage existing exposures. Equally as Government schemes such as Funding for Lending come through, we also expect to see more origination and an increase in lending activity.
From Vertex’s perspective, our growth will come from our ability to support all this with technology and people. Short term, perhaps more opportunities will exist at the debt recovery end, but longer term there will be more new entrants and existing players looking to manage their new lending requirements more cost-effectively and efficiently.
FR: What single piece of advice would you share with lenders?
This will come as no surprise, coming from a third party administrator: we would advise lenders to seek variable cost models as an alternative to fixed overheads. That’s probably our (and most servicers’) first sales message. We can remove legacy IT platform challenges and costs, and house the assets with a system that can add value to the lender’s overall proposition. Also, a servicer can bend and flex with the ever-changing economic and regulatory environment, so why bear the burden of doing it yourself?
Although I am clearly biased, I hope that lenders would see that moving from a fixed to a variable servicing cost model is good advice however you look at it.
FR: What is your biggest point of pride, and biggest regret, in business?
I’m most proud to have reached the level I am at despite my relatively tender years. Let’s just say I’m younger than I look.
My biggest regret is that I currently don’t have the personal wealth to provide funding to some of the innovative businesses I’ve come across in the past 12 months. But I would say that there are opportunities out there for those that do have the capital - or access to cost efficient funding - the right partners and the right entrepreneurial attitude, to make some strong investments even in the current economy.
FR: What would you be doing if you weren’t in Financial Services?
I love the idea of life as a professional rugby player. I’ve played for Yorkshire, North of England, Wales Exiles under 21s and still play the game today (just about). But I’ve rugby to thank for the career I’ve enjoyed in financial services – it’s because of the game that I chose not to go to university, which in turn allowed me to start young in this business.
