SMB Lender Averts $7 Million in Dollar Losses and 40% in Unit Losses with GDS Link Analytics

Humans are notoriously unpredictable, which makes lending one of the most inherently risky industries. But what if there was a better way to understand a borrower’s behavior that could help financial institutions mitigate fraud and default losses?

In 2020, McKinsey reported that roughly one out of five respondents believed that more than 5 percent of their organisations’ enterprise-wide EBIT in 2019 was directly attributed to their utilisation of advanced analytics. The ability to leverage artificial intelligence (AI) and machine learning (ML) to semi-autonomously examine data and drive action is available for all financial organisations no matter the size with GDS Link. From the start, the our team works with you to identify untapped opportunities an turn them into reduced exposure with greater responses and approvals, all whilst improving efficiency and flexibility that ultimately improve your revenue.

With GDS Link ModellicaPro Analytical Services, your business immediately gains:

  1. Expertise with Advanced Analytics – Our solutions utilise AI and ML to continuously evaluate the full credit customer lifecycle and improve your model as the lending landscape evolves.
  2. Refined Models and Tactics – Clients receive up-to-date scorecard models, decision trees, and an understanding of the current economic conditions, so the model can be re-tuned and optimised for their current needs.
  3. Knowledge of Financial Exports – Not every financial institution has the upfront capital needed to hire a data scientist that can execute a complex model. With GDS Link, you have access to the knowledge of an organisation with over 50+ years of global expertise and experience.

After GDS Link’s Analytical and Advisory Services

Over the years, our solutions have helped clients receive an average 25% increase in loan volume and 35% reduction in loss and fraud. A SMB lender operating in multiple countries needed to reduce risk while simultaneously approving more businesses, including those which typical credit data indicated were high risk. They needed a solution that could transform bank account transactional information into insightful attributes and scores, helping them swap in new customers at existing portfolio fund rates and fund amounts without increasing risk.

With ModellicaPro Analytical Services, the lender was able to reduce dollar loss rates up to 45% on a per account basis, and overlay expert rules with the new SMB scores, aligning payments to the best day and estimating cash flow amounts that were most likely to have successful payments. By the end of the 12 month period, they were expected to have averted ~$7 million in dollar losses and 40% fewer unit losses. Furthermore, they had even greater potential for further savings as they utilised data sources in a continuous loop of improvement.

Read more about GDS Link’s ModellicaPro in action in our latest whitepaper “Leveraging Advanced Analytics and Modeling Service to Optimise Decisioning and Manage Credit Risk.”

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From loan originations and decisioning, to customer management and beyond, GDS Link helps thousands of clients manage risk while driving growth.

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