Center Bancorp, the parent company of Union Center National Bank, has signed two strategic outsourcing agreements to aid in the realization of its goal to reduce operating overhead and shrink the infrastructure of the corporation.
According to the company, the cost reduction plans are expected to improve operating efficiencies, business and technical operations.
A key component of the plan is an information technology (IT) infrastructure and business process outsourcing initiative to migrate certain service, development and support functions – including IT infrastructure services, application support and maintenance, transactional services to financial technology management company Compushare.
In a separate action the corporation has announced that it is partnering with PHH Mortgage, a subsidiary of PHH Corporation as a strategic outsourcing partner for its mortgage loan origination and servicing business. PHH Mortgage will provide end-to-end mortgage solutions that promote the Union Center brand in all customer communications.
PHH Mortgage will provide the bank with a multi channel origination platform, integrated loan processing, branded loan servicing, and certain secondary marketing functions. The alliance allows the bank loan officers to use web-based software while PHH employees will do the entire loan processing, underwriting and closing in the name of Union Center.
The PHH Mortgage platform will also allow the bank to expand its origination channels, making mortgages more convenient for its customers. The bank will use PHH Mortgage’s inbound call center and fully private labeled internet origination site.
Center Bancorp believes that both of these arrangements will allow the company to offer products and services without the internal costs of maintaining its own platforms and effectively allowing the corporation to leverage its banking franchise.