60 Seconds with.....Geraint Chamberlain

11 January 2010 | By Christine Toner

How was 2009 for Target? What problems did you face?
It was an exciting year for us, and was also a period of substantial growth. The economic downturn brought a number of opportunities for the group, with our loan servicing arm winning a number of client portfolios in markets ranging from motor to residential and commercial mortgages and equity release products. Our main challenge was keeping abreast of the rapidly changing market and reacting quickly to capitalise on the opportunities that were presented to us.

What do you think we can expect from 2010?
We are starting to see some green shoots of recovery, with a number of new entrants to the market. But the situation remains challenging, particularly when it comes to lenders securing funding. Those lenders originating new business will take a more cautious approach, perhaps with more emphasis on manual reviews and assessments of loan applications.

What will be the biggest problems facing the industry?
While access to funds will be a key challenge new regulations - or uncertainty about them - is sure to cause a headache. We are involved in this debate as we strive to get on the front foot and offer clients advice on how regulations will affect their businesses and systems. This will be a tough challenge.

Are companies reluctant to invest in technology in the downturn?
Yes and no. Although lenders may not be looking to make wholesale changes to their systems they are investing in technology where it can help improve the returns from and benefits of previous investments in systems development. Particular areas of investment we have noticed include business process management and electronic document management. These facilities enable lenders to maximise efficiency while minimising operational cost without necessarily having to change underlying legacy systems.

Is outsourcing cost-effective given the restraints on firms’ budgets?
Absolutely. First, outsourcing can provide predictable costs related to the servicing of loan portfolios that are linked directly to performance. Second, flexibility of pricing is important. Outsourced servicing costs must be calculated and presented in such a way as to match the aspirations of lenders and what they want to achieve from their portfolios.

Interview by Christine Toner