HP-Owned MphasiS Acquires Mortgage Risk Analytics Provider


Digital Risk's mix of behavior analytics and broad data sourcing have helped it grow quickly over the past year and to be selected as one of Bank Technology News' Top Ten Tech Companies to Watch in 2013. The company has now attracted the attention of MphasiS, a Hewlett Packard (HP) company that on Monday morning announced it is buying the mortgage risk specialist.

MphasiS, a $1 billion company that sells applications, infrastructure services and business process outsourcing to global clients in financial services, insurance, manufacturing and communications, is adding Digital Risk as part of its "hyper specialization" strategy, using Digital Risk's domain expertise in mortgage risk as a competitive differentiator.

The deal should give Digital Risk an opportunity to leverage MphasiS' facilities to further its expansion. The two companies anticipate hiring about 500 people, some of whom may be housed in MphasiS facilities across the country. Digital Risk will maintain its brand and management structure. A spokesperson said that day-to-day operations will remain the same.

The Orlando, Fla.-based Digital Risk has been on a winning streak. Its yearly earnings grew to about $79 million in the past year from $3 million in 2008, and the company has doubled its headcount in the past year.

It also recently released Veritas, a tool that uses borrower, property and local real estate data to analyze how a borrower's behavioral tendencies predict prioritization of mortgage payments vs. other financial obligations. Digital Risk, which says it's gone live with a couple of tier-one bank clients, faces competition in the mortgage risk space from companies such as FICO (FICO), CoreLogic (CLGX), SAS (SAS) and Wolters Kluwer (WKL).




'The Law Penalizes the Consumers It Set Out to Protect': Comments of the Week

American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the Comments sections of AmericanBanker.com articles.

(Image: Fotolia)

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

The FinTech 100

FIS and Tata once again top the annual FinTech 100 list of vendors, ranked by revenue; IBM and Hewlett-Packard lead the pack of tech companies serving multiple industries; and Bionym and Silver Tail are among the 10 Tech Companies to Watch.

A Newsletter featuring Bank Technology News' top stories plus special reports and data

This feature displays payments industry news and analysis from American Banker sibling brand PaymentsSource. Registration is required; for more information contact customer service.

Already a subscriber? Log in here
Please note you must now log in with your email address and password.