So much to do, only so many hours in a day. Delegating to a trusted third party may allow you time to concentrate on core competencies.
Attracting new business and maintaining relationships with current clients can be like changing the wheels on a bus while it’s still in motion. There is so much else on your plate. But what if there was a way to delegate duties like underwriting and even administration to a trusted third party? That’s where business process outsourcing (BPO) can come in. BPO “involves contracting specific business processes or functions to a third-party service provider,” says Tara Somerset, vice president and managing director of residential services at Intellifi. This can involve outsourcing functions like underwriting, funding, call centre servicing, administration, and investment management for mortgage lenders. Somerset has worked at Intellifi, which is headquartered in Calgary, since January 2022, and in the mortgage industry since 2004. “We take responsibility for performing the functions on behalf of the mortgage lender, following agreed-upon processes and service level agreements,” she says. “We follow their servicing and compliance standards.”
Multiple benefits for lenders
There are different reasons why a mortgage lender would seek such BPO services. “They allow the lender to scale their operations more efficiently,” Somerset says. There are cost savings such as reduced overhead expenses related to managing day-to-day operations or hiring staff and training them on new technology. Or a company may need more staff at some times of the year than others due to seasonal volume fluctuations. “We specialize in all of these functions,” Somerset says.
Beyond cost savings, there is another benefit. “Outsourcing allows the lender to focus on core competencies,” she says. Through outsourcing, “the lender can then redirect their internal resources and expertise towards strategic initiatives, like business development and customer relationships.” Outsourcing can also mean faster turnaround times for loan approvals, since a client can have access to dedicated resources that streamline the process. “We’re able to process transactions quicker,” Somerset says. “We can make decisions with established quality control measures in place, as well as compliance and regulatory adherence.” So, how does a client pick what service they need from Intellifi? “Lenders can choose Intellifi for their end-to-end needs or choose services à la carte,” Somerset says. “We have a dedicated project delivery team as well as our subject matter experts who spend time with the lender, learning and understanding their business model so that we can replicate the customer experience to the lender’s specifications.” Responding to complex needs
Depending on the complexity of a new client’s needs and the mortgage products, they can be onboarded by Intellifi in as little as six weeks. “Not quite as simple as plug-and-play, but we do pride ourselves on simplifying the process for the lender to make the experience as seamless as possible,” Somerset says. “Intellifi also offers back-up servicing and back-up underwriting as part of our suite of services.” Intellifi stays on top of the latest regulations and compliance requirements, thereby reducing the burden on the lender. It also provides specialized risk management expertise, thus minimizing lender risks associated with underwriting and servicing functions.
The company currently supports close to a dozen lenders, as well as the Canada government’s Greener Homes Loan Program. It has offices in Vancouver, Calgary, and Toronto, as well as remote workers across the nation. There are about 160 BPO employees and 320 employees overall, all working in Canada (all data and information is stored in Canada too). “Our track record, industry experience and expertise, technology capabilities, quality assurance practices, and the ability to customize solutions to meet specific lender needs really speak for themselves,” Somerset says. “This is what we do. Your success as a lender directly impacts our success as a service provider. So we treat this as a partnership.”
**Originally published at https://www.mpamag.com/ca/mortgage-industry/business-growth/exclusive-feature-the-benefits-of-outsourcing/460080