The marketplace lending industry is experiencing a shift as maturation combines with external changes to drive disruption. A Deloitte study went so far as to say that we are entering the era of marketplace lending 2.0, a new iteration of the service that emerges as marketplace lenders increase their industry partnerships and more asset classes shift to digital lending models.
GDS Link can play an instrumental role in helping marketplace lenders keep up with these changes by offering the risk analytics and decision engine tools needed to sustain a stable, fast-paced lending environment.
An evolving marketplace lending landscape
According to Deloitte, the move toward partnerships between banks and marketplace lenders has been underway for a while. What is really changing is the way fintech innovation is combining with these partnerships to help marketplace lenders offer lending solutions as a service. This service-based lending model is driving deeper penetration for digital loans, which are already starting to take hold among small business, student and unsecured consumer lending asset classes. Moving forward, digital lending will soon begin to gain more traction in auto lending and residential mortgages.
“Emerging analytical capabilities are allowing financial services firms to gather and gain insights from a wider range of data formats.”
All of this innovation is possible largely due to fintech advances that are driving progress in risk analysis. McKinsey found that emerging analytical capabilities in the sector are allowing financial services firms to gather and gain insights from a wider range of data formats. This is making it much easier to identify and assess risk, creating a more secure and flexible lending environment.
These industry conditions are coming together to transform marketplace lenders. Organizations that want to remain competitive and even get ahead in the sector must seriously evaluate their analytics capabilities and strive to innovate. This is where GDS Link can help.
How GDS Link empowers marketplace lenders
GDS Link offers a portfolio of risk management tools that are built around modern analytics capabilities. Our solutions are designed to empower lenders to:
- Gather information relevant to loans quickly.
- Process large quantities of data to identify trends and patterns.
- Deliver findings to users in actionable ways.
- Simplify decision-making by presenting data deep dives in an accessible manner.
- Build out custom scorecards and regularly update them as new lessons are learned.
- Incorporate dedicated decision engine tools into digital lending processes.
These capabilities come together to give lenders a full picture of their entire lending landscape, making it much easier to provide adequate oversight and checks and balances. Furthermore, the data analytics tools can also be applied to key fraud prevention tasks, allowing lenders to identify signs of fraud in much more intuitive ways than would be possible without big data.
All of this is delivered in a technically simple way. We offer licenses for internal use or cloud-based service delivery, giving you flexibility to access our technology in the workflow that functions best for your business. Furthermore, we’ve built our analytics platforms on a low-maintenance tech foundation that allows for scalability and high levels of performance.
Marketplace lenders must continue to innovate as they work to gain a competitive edge in the changing market. GDS Link offers the robust portfolio of analytics systems needed to drive that progress.
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