“Having accurate, timely risk and loss forecasts is paramount to making good business decisions when delinquency and loss rates are so elevated,” explained Fran Lyons, a principal of Scoring Solutions. “We had a core structure in place to produce more traditional scorecards, but needed the added flexibility to incorporate new data sources in a timely manner, as speed of implementation is critical in these times for creditors to drive performance and profitability. By aligning with GDS Link, we are able to shortcut the delivery of comprehensive scoring models, therefore positively contributing to creditors’ bottom line results.”
Scoring Solutions has been developing credit bureau attributes for segmentation, predictive modeling and credit policy use for more than 17 years. The company worked with GDS Link to create an interface defining more than 1,000 attributes that have been standardised across the three major credit bureaus, including multiple industry groupings for both the trade and inquiry sections. GDS Link’s DataView360 facilitates the quick delivery of these scoring models, all without significant interruption to a creditor’s existing infrastructure, to improve the value of decision making and accuracy of risk forecasts.
The scorecards access a diverse range of data sources, use complex credit bureau attributes and are based on very recent samples of data that reflect the trends of the current recessionary
period. Customer payment and performance trends have changed with more delinquent and
derogatory credit, and with lower payment priority for real estate and home equity. The focus a customer’s recent performance, as opposed to long-term historic payment patterns, results in a more accurate assessment of risk, particularly as economic conditions improve. These new scorecards have been fully implemented and in production, all within two months of model completion.
“DataView360 facilitates the rapid deployment of new data sources, credit attributes and scores
with low system integration costs and reduced IT resources,” explained Paul Greenwood, president of GDS Link. “The relationship with Scoring Solutions enables each of our clients benefit from more complex, holistic data to enhance their risk management strategy while also providing easily modifiable attributes and rapid scorecard implementation in response to market changes.”
GDS Link serves the financial services, telecommunications, energy, retail and automotive industries with risk management solutions for data access and aggregation, scoring implementation and decisioning process flows.