Infosys to acquire ABN AMRO’s mortgage services unit

Bengaluru-based IT services firm Infosys said it will take over the mortgage administration services unit of ABN AMRO, based in Amsterdam, Netherlands.

Infosys will acquire a 75% of the shareholding in Stater, while the remaining stake will continue to be with ABN AMRO.

Financial details of the deal were not disclosed.

Stater offers pure-play, end-to-end mortgage administration services in the Netherlands, Belgium and Germany and is also the largest mortgage service provider in the Benelux region (Belgium, Netherlands and Luxembourg), the Bangalore-based company said.

Infosys said the acquisition will strengthen its position as “a leading technology and business process management provider across the mortgage services value chain” and improve its operational efficiency.

The acquired company “brings deep European mortgage expertise and a robust digital platform to drive superior customer experience,” Infosys said.

The deal is yet another example of a traditional company handing over non-core operations to a third party provider like Infosys. Such trends have become more and more visible in recent years as companies find it tough to implement digital technologies such as artificial intelligence and automation to upgrade their non-core operations, such as customer support, human resource management and so on.

Indian companies like TCS and Infosys have emerged as leaders in helping companies deploy advanced technologies into their operations to cut costs.

In this case too, Infosys will ‘digitally transform’ Stater with technologies and processes such as dynamic workflow, Application Programming Interface (API) layers, Robotic Process Automation (RPA) and analytics, the Indian company said.

“The partnership brings together our complementary capabilities to enhance the value we offer to our financial services clients”, said, Mohit Joshi, President Infosys.

The transaction is expected to close during the first quarter of fiscal 2020, Infosys said.

Stater services 1.7 million mortgage and insurance loans for approximately 50 clients in Netherlands and Belgium, according to Infosys.

It offers a complete range of mortgage services and is a front runner in digital services regarding mortgages and in developing a digital ecosystem for mortgages.

Headquartered in Bengaluru, Infosys provides business consulting, information technology and outsourcing services.