Friends again: The Co-op Bank and Capita have renewed a £141m contract after falling out in 2016
Capita has been tasked with running the Co-operative Bank’s mortgage servicing operations for the next six years, in a contract win which indicates the once-strained relationship between the two is back on course.
The £141m deal comes after a public spat in September 2016, in which the Co-op Bank claimed the London-listed firm had failed to deliver on elements of the plan.
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Months later, Capita issued a statement assuring investors the two had “resolved their contractual differences”.
However, the renewal of the contract is thought to be symptomatic of chief executive Jonathan Lewis’ bid to rebuild relationships with the tech contractor’s key clients since his 2017 arrival, which include the Ministry of Defence.
He said: “I am delighted that The Co-operative Bank has chosen to renew our partnership. This is testament to a new Capita, which is working more collaboratively with its clients, and is strongly aligned to the bank’s values as a responsible business.
“We look forward to offering an even better mortgage service to the Co-operative Bank’s customers which will make the process of securing a mortgage much faster and smoother.”
Capita’s existing contract with the bank for its mortgage servicing operation was signed in August 2015 and was due to conclude in 2020.
The FTSE 250 firm is understood to be making a concerted push towards the financial services industry as it kicks on with a three-year turnaround plan implemented by Lewis.
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Co-op bank chief executive Andrew Bester said: “Our mortgage business continues to thrive and is central to our future plans for the Co-operative Bank.
“The service Capita provides our customers is a key element of our success in a competitive market, and we are delighted to be renewing our partnership.”