GDS Link's Analytics Transformation at Brundage Management
GDS Link's Analytics Transformation at Brundage Management
GDS Link's Analytics Transformation at Brundage Management
GDS Link's Analytics Transformation at Brundage Management
Read The Case Study
Case Study
Brundage Management, servicing Sun Loan Company, faced several challenges in the lending industry, including navigating complex state regulations, adapting to pandemic-era financial instability, and balancing profitability amidst interest rate caps. Brundage Management partnered with GDS Link to transform their operations through advanced data analytics and tailored credit risk models.
GDS Link's solutions enabled Brundage to achieve regulatory compliance, enhance model resilience during economic disruptions, and optimize loan amounts for better customer satisfaction. Discover how Brundage Management significantly improved their operational efficiency, reduced default rates, and boosted profitability by downloading the full case study. Unlock the secrets to their success and see how GDS Link can elevate your lending operations.
About Brundage Management
Brundage Management is a recognized name in the short-term lending industry, operating under the brand name "Sun Loans." With a strong focus on providing financial solutions to underserved markets, Brundage Management has a substantial branch network, which offers installment loans to customers in various states. As a responsible lender, they sought to balance the needs of their customers with sound lending practices and compliance with state-specific regulations.
The Challenge
Brundage Management faced a myriad of challenges, ranging from regulatory pressures to shifts in customer demographics. Some of the key challenges included:Challenges Addressed
1. State-by-State Model Complexity: As a lender operating across multiple states, each with its unique regulatory environment, Brundage Management needed a flexible solution capable of adapting to varied state lending requirements.
2. Model Effectiveness in the Pandemic Era: The outbreak of the COVID-19 pandemic added uncertainty to lending practices. Brundage Management needed to ensure that their risk assessment models remained effective and reliable amidst these unprecedented times.
3. Profitability Amidst Rate Caps: With several states implementing a 36% rate cap, Brundage Management needed to find a balance between profitability and responsible lending in these markets.
4. Enhancing Customer Experience: The lender sought to offer more personalized loan products to their customers, aligning loan amounts with borrower needs and affordability while ensuring a seamless customer experience.
The Solution
After evaluating potential partners in the industry, Brundage Management chose GDS Link as their trusted ally in their quest for data-driven lending excellence. GDS Link offered a suite of solutions tailored to meet Brundage Management's unique requirements:1. Analytics Transformation: GDS Link embarked on a comprehensive model development process, working collaboratively with Brundage Management to build robust credit risk models. These models incorporated a wealth of data, including internal historical loan performance, external credit bureau information, and alternative data sources. The goal was to create accurate and adaptable models capable of making real-time lending decisions.
2. State-Specific Customization: To address the complexities of operating in a multi-state environment, GDS Link developed a state-specific approach. Each model was tailored to adhere to the unique regulatory requirements of the states in which Brundage Management operated. This approach ensured that loans were originated in full compliance with local regulations.
3. Pandemic-Resilient Models: Recognizing the impact of the COVID-19 pandemic, Brundage Management and GDS Link worked diligently to assess the resilience of the models. Rigorous testing was conducted to evaluate how external shocks affected the models' predictions, ensuring they remained effective and reliable in turbulent times.
4. Loan Amount Optimization: GDS Link introduced a more customer-centric approach to loan origination. By leveraging the power of advanced analytics, the models provided guidance on optimal loan amounts for each borrower, considering their creditworthiness and affordability. This approach aligned Brundage Management with responsible lending practices.
The Impact
The collaboration between Brundage Management and GDS Link resulted in significant improvements in several key areas:1. Enhanced Efficiency:
· Faster Decisioning:Brundage Management saw a substantial reduction in the time required for loan decisioning, enabling quicker access to funds for their customers. · State Compliance: The state-specific customization ensured that loans were originated in strict compliance with individual state regulations, reducing regulatory risks.
2. Improved Risk Assessment:
· Pandemic-Resilient Models: The models proved to be robust even during the challenging pandemic period, allowing Brundage Management to make informed lending decisions in uncertain times. · Lower Default Rates:The enhanced models led to more accurate risk assessment, resulting in lower default rates and improved portfolio performance.
3. Customer-Centric Approach:
· Optimized Loan Amounts: Borrowers received loan amounts that aligned with their needs and repayment capacity, leading to increased customer satisfaction.
4. Profitability in Rate-Capped States:
· Successful Operation: Brundage Management not only continued to operate but also thrived in states with 36% rate caps, demonstrating the adaptability of the models.
"GDS Link has been an invaluable partner on our journey to data-driven lending excellence. Their state-specific models, pandemic-resilient approach, and optimization of loan amounts have transformed our lending operations. We've seen improved efficiency, lower default rates, and enhanced customer satisfaction. GDS Link's expertise has been a game-changer for us."Peter Wyman, Chief Operating Officer,
Brundage Management:"Working with Brundage Management has been a rewarding experience. We've collaborated closely to develop tailored solutions that address their unique challenges. The success we've achieved together is a testament to the power of advanced analytics in the lending industry.”GDS LinkAbout GDS Link:
GDS Link is a global leader in credit risk management, providing tailored software solutions, analytical and consulting services. Our customer-centric risk management and process automation platforms are designed for the modern lender in their pursuit to capitalize on the entire credit lifecycle. By providing a personal, consultative approach and leveraging our own industry-leading knowledge and expertise, GDS Link’s solutions and services deliver exceptional value and proven results.
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