ISGN Corporation may not be popular in India’s mortgage market, but has built a reputation in the US using its product development centre in Chennai and support centre in Bangalore.
For over 1,000 customers, including large banks and a majority of the top ten lenders, in the US, it provides technology and back-end support on mortgage-related issues.
Annually, ISGN handles around 4 lakh valuation orders; 5 lakh title services orders and processes 1.5 million loans through its suite of servicing platforms.
Its product line includes a range of solutions for lenders, brokers and servicers.
It has spent over 20 years creating intelligent solutions, including technology platforms, knowledge process outsourcing and on-demand services. Mr Ritesh Idnani, who joined as the company’s CEO in June, came from Infosys BPO where he served as Chief Operating Officer and Senior Vice-President. In six years, he grew Infosys BPO’s revenues from $40 million to around $500 million annually.
Mr Idnani spoke to Business Line on how ISGN has created a niche for itself in the mortgage sector. Excerpts.
You have acquired four companies between 2006 and 2009. What have they brought?
The acquisitions laid the foundation for what we are today. They gave the loan origination system, the capability on settlement services side and gave us the default servicing platform. All of these are the building blocks that the company is made of today. Since these blocks are in place, we need to capitalise and grow our footprint with the existing client base and look out for new prospects. We will continuously look for acquisitions.
You also attracted a number of venture capital firms?
We created deep industry expertise in the mortgage sector. We have technology assets across the entire mortgage value chain, coupled with a services and analytics layer and leverage the global delivery model by using our India centres. We were funded by venture firms like New Enterprise Associates and IndoUS Venture Partners, and by CFCL Overseas Ltd, an SPV of Chambal Fertilisers and Chemicals Lid, a K.K. Birla company. ISGN employs over 1,500 people across six centres in the US and two in India.
At what stage are you in today?
ISGN is poised to be an interesting place in the US mortgage sector. We provide end-to-end service across the entire mortgage eco-system - whether it is for loan origination or default.
We also have services and analytics layers. All these components make us unique when compared to our competitors.
Why only the US?
The US has got enough potential. Our objective is to capitalise everything that it offers. With the low interest rate regime and regulatory landscape changing dramatically, it offers lots of opportunities for us.
The industry is being reconfigured. The entry of non-banks is also driving changes. The regulatory landscape is changing dramatically. Whether it is due to introducing Basel III or government-sponsored changes, all require technology.
What do your India centres do?
Chennai does product development, while Bangalore represents mortgage processing capability. We take every asset in the value chain for the customer.
For instance, we can have a loan origination system where technology is implemented. We can help in the entire loan origination process from a business process outsourcing’s standpoint. We can originate the loan, can underwrite the loan and close the loan.
How much of work is being done offshore?
Clients want most of the underwriting work to continue to be in the US. Some of the core processing work also remains in the US.
We have about 400 people in the US and 1,000 in India. We are quite happy with the mix we have created.
We become an extension of a client’s organisation. Our existence is critical for them to fulfil their requirements.