GDS Link Proposes Remedy for Forthcoming UDAP Changes

The proposed Unfair Deceptive Acts and Practices Legislation (UDAP), in its current form, will have a significant impact on the way credit card issuers manage the risk of their existing and future card portfolios. A key aspect of the proposed regulations will impact an issuer’s ability to re-price new and existing balances thereby reducing their portfolio yield and associated profitability. With reduced flexibility on the back-end, the need to strengthen risk management practices on the front-end will be even more critical as the card industry moves forward.

Legacy loan origination systems currently deployed at many financial service organizations do not provide the flexibility to easily implement new credit scoring that may be required to facilitate enhanced risk management policies necessary to offset reduced pricing flexibility once an account is booked. In addition, with the introduction of a wide range of new data sources over the past several years, reliance solely on the three traditional credit  bureaus may not provide lenders with a complete view on a consumer’s capacity to pay. Enhanced front-end lending models, should, at a minimum, include testing of alternative data sources to see if this unique information can add lift to new scoring models.

DataView360™ by GDS Link, ( was designed to provide financial service organizations with a flexible tool kit which allows for easy integration with any third party or internal data source, the ability to easily develop custom data attributes and the rapid implementation of in house developed or third party custom scorecard models. In addition, DataView360 supports complex process flows, unlimited champion challenge strategies and risk policies based on portfolio segmentation, product type and other key market drivers.

A robust internal facility for performing retrospective analysis of business rules objects and strategies is also supported allowing your risk management staff to test models and new risk policies prior to deployment. From within DataView360, you can simply invoke the Retro-Scoring engine and recall archived credit bureau, application and/or internal system data for testing alternative business scenarios. The Retro-Scoring engine gives an organization the ability to validate new rules objects,credit bureau attributes and custom scorecards using real transactional data, but free of consequence in a non-production setting.


*****   Enhance the Value of Your Existing Technology Investment  *****

GDS’s DataView360™ was developed with the recognition that financial service organizations have made large investments in their existing lending platforms and the effort to replace these solutions would be very labor intensive and quite expensive. DataView360 was designed to be a “bolt-on” to your existing lending platform providing your organization with all the feature richness of our solution while at the same time increasing the return on investment of your legacy solutions.

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