Wolters Kluwer announces 7% organic growth for GRC division’s financial technology businesses
Wolters Kluwer, the global information services provider, has reported its 2020 annual results, with revenues of €4,603 million, up 1% in constant currencies and up 2% organically.
Notably, the financial services business lines within Wolters Kluwer’s Governance, Risk & Compliance (GRC) division delivered “strong organic growth of 7% (FY 2019: 3%)”, according to the full year report. “Excluding revenues associated with the Paycheck Protection Program (PPP), organic growth for Wolters Kluwer’s GRC Financial Services was 1%, supported by product innovation”, the company said.
GRC’s Finance, Risk & Regulatory Reporting (FRR) business, which provides regulatory reporting software to banks, recorded mid-single-digit organic growth, with “increases in recurring software maintenance revenues.” Wolters Kluwer Lien Solutions, meanwhile, reported “rapid growth in its new motor vehicle title perfection service.”
The division’s Compliance Solutions unit, which provides mortgage and other loan origination solutions to banks, “delivered double-digit growth having been one of the first vendors to provide a solution for lenders to participate in the U.S. PPP.” As previously reported, in December 2020 Wolters Kluwer Compliance Solutions, led globally by Steven Meirink, acquired eOriginal, a provider of digital lending software for approximately €231 million in cash.
The GRC division expects 2021 “adjusted operating profit margin to improve on the back of lower restructuring and provisions.”
The results follow a particularly eventful 2020 for Wolters Kluwer GRC when it comes to product innovation and notable divisional news in the financial technology world. PPP Supported by TSoftPlus, for example, was launched by Compliance Solutions in April 2020 to help banks, credit unions, and other local lenders in the U.S. support small businesses with payroll funding during the COVID-19 crisis. The software was recently enhanced to expedite Small Business Administration (SBA) loan applications and, thanks to its recent acquisition of eOriginal, Wolters Kluwer Compliance Solutions is also able to offer a digital loan platform that enables SBA electronic signature and record retention mandates for digital loans.
“Collectively, Wolters Kluwer and eOriginal have enabled almost 500 SBA lenders in the initial rounds of the PPP program, ensuring a contactless borrower experience and, in the process, helped those small businesses save more than ten million U.S. workers’ jobs,” according to. Paul Lyon, the GRC division’s Chief Spokesperson
The FRR business, meanwhile, has continued to enjoy impressive independent recognition of its market leading position. Earlier this week it announced no less than four new awards noting its “excellence and innovation” in regulatory reporting. Lien Solutions, likewise, yesterday announced three major industry accolades for excellence in product innovation. Two of its solutions—iLien Motor Vehicle and Portfolio Sync—have earned “Product of the Year” distinctions in Finance Monthly magazine’s hotly contested 2021 FinTech Awards, while its iLien for Main Street offering won a 2021 BIG Innovation Award in the “Banking Innovations” category.
The acquisition of eOriginal also appears to be generating notable achievements for the division’s financial services businesses. In fact, according to a company statement issued today the newly acquired eOriginal technology platform is “helping support a major U.S. government institution’s efforts to adopt digital technologies as part of its broader modernization initiative.”
Ginnie Mae, an eOriginal client, recently announced a key milestone in its digital journey by guaranteeing securitization of mortgage-backed securities (MBS) for the first time exclusively through the use of eNotes technology, utilizing the eOrginal platform. The MBS were part of the January issuance cycle and backed by digital pools comprised exclusively of eNotes that closed in December 2020, totalling approximately $24 million in aggregate principal value. By accepting eNotes as valid collateral for loan products issued by the Federal Housing Administration, Veterans Administration, U.S. Department of Agriculture and other government entities, Ginnie Mae enables broader acceptance of digital mortgages across the residential lending ecosystem.
“Ginnie Mae’s adoption of our eOriginal platform for its securitization process marks the continued progression—and acceleration of digital technologies that are helping speed and secure transactions in the mortgage ecosystem,” said Steven Meirink, Executive Vice President and General Manager, Wolters Kluwer Compliance Solutions. “With eOriginal’s purpose-built electronic signature, eClosing and eVaulting capabilities now part of our portfolio, we have an end-to-end digital capability and are well-positioned to assist lenders throughout all phases of the lending process, from origination through to the secondary market, with compliance certainty.”
Wolters Kluwer GRC provides an array of expert solutions for legal and banking professionals “to help ensure compliance with ever-changing regulatory and legal obligations, manage risk, and increase efficiency.” These solutions include customized offerings to address Covid-19 challenges. Wolters Kluwer CT Corporation, for example, has launched a Covid-19 resource center to provide businesses and law firms with international, federal and state legislative updates. Other expert solutions include Wolters Kluwer Lien Solutions’ UCC Manage, which enables lenders to manage and address risks in their entire Uniform Commercial Code lien portfolio with analytics, visibility and automation.