Computer Sciences Corporation announced a new debt protection service that allows banks and other financial institutions to offer their own debt protection programs to their customers. The offering increases fee income for banks while eliminating their need to contract with insurers for such services.
The end-to-end CSC offering includes flexible planning, design and implementation, as well as full actuarial, administration and back-office support. The package is tailored to meet the specific needs of the financial services firm and the borrower. Because the program is available on an application services provider (ASP) basis, the client needs no hardware, software or programming resources.
Banks traditionally have offered debtors credit life and disability insurance. According to the U.S. Office of the Comptroller of the Currency, they may now also offer their own debt protection services for a fee. DPPs have been gaining steam since the 1999 passage of the Gramm-Leach-Bliley Act (GLBA), which modernized the U.S. financial services industry. The GLBA excluded debt protection products from the definition of insurance, freeing them from many regulatory restrictions.
“DPPs enable banks to offer borrowers a cushion against involuntary unemployment, disability and many other life-altering events,” said Gary Fagg with Dallas-based CreditRe, an actuarial consulting and training firm serving the financial services and credit insurance industry. “Since the GLBA, major credit card issuers have converted their credit insurance programs to debt cancellation programs. This billion-dollar industry is in the process of moving from credit insurance to debt protection. As a veteran of credit insurance processing since the early 1980s, CSC is an obvious choice to aid rapid DPP deployment.”
CSC has enhanced its systems to process debt protection for automobile loans and leases, consumer lending, first mortgages, other real estate-secured loans and credit cards. Supported functions include solicitation campaigns, applications, billing and collections, payment processing, correspondence, contract settlements and cancellations.
“Our debt protection service can be launched with very little effort and up-front expense,” said David Blanton, executive vice president of Banking Solutions for CSC’s Financial Services Group in the Americas. “By bringing this innovative ASP offering to market, CSC gives banks and other financial services firms a way to use information technology to improve their customer service and profitability.”
CSC continues to extend its comprehensive array of financial services business and technology offerings, ranging from the Hogan core banking systems to solutions for credit cards, image payment and archive, lockbox and loan administration servicing. More than 60 percent of the world’s top 50 banks count on CSC to support their strategies for revenue growth and processing efficiency.
Computer Sciences Corporation, one of the world’s leading consulting and information technology (IT) services firms, helps clients in industry and government achieve strategic and operational results through the use of technology. The company’s success is based on its culture of working collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges.
Having guided clients through every major wave of change in information technology since 1959, CSC combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of global corporations and organizations. With nearly 68,000 employees in locations worldwide, CSC had revenues of $10.8 billion for the 12 months ended June 29, 2001. It is headquartered in El Segundo, Calif. For more information, visit the company’s Web site at .Details