Target, a provider of software and services to the financial services sector, has announced the formation of Target Loan Servicing Limited (TLS), a wholly owned subsidiary of Target Group.

The initiative, which will create 225 jobs, has been supported by the Welsh Assembly Government with a Regional Selective Assistance grant of 1.64 million pounds. Target is currently finalizing a property deal to locate its new subsidiary here.

TLS will provide comprehensive loan administration services for organizations within the consumer lending sector.

The service has been launched in response to a growing trend within the financial services sector to outsource back-office processes, particularly for startup operations looking for speed to market. Outsourcing these processes enables organizations to focus on their front-end capabilities; including product design, sales and marketing.

“TLS is a natural next step for Target, as we already provide a managed service for a number of our clients, where Target hosts and maintains many of its clients’ IT systems and infrastructure,” said Grant Hawkins, chairman and CEO of the Target Group. “TLS will provide an extension of this service, where back-office functions such as application processing, account servicing and arrears management will be administered at TLS’ premises.”