GDS Modellica: Advanced Decision Analytics to Boost Profits and Reduce Risks

Like most other industries, the banking industry has changed dramatically in recent times. In the last years after the recession, the subsequent economic recovery and the introduction of new technologies, the way people manage their financial relationships has shifted spectacularly—and this is not about to stop anytime soon. Nowadays, immediacy is a must; younger people no longer take a trip to the bank and stand on the line. Customers have a bunch of options, and they are constantly comparing to get the offer that better adjusts their needs. In this context, lenders need to quickly adjust their solutions to the changing reality, deal with fierce competition, and assess risk within a short period of time. There is still a significant part of traditional financial institutions around the world that are not equipped to adapt to the changing expectations of the current consumers. With the aim to help banks to accelerate innovation and deliver the banking experience its customers are requiring, GDS Modellica has been heavily investing in powerful solutions, where concepts such as Decision Management, Analytics as a Service, Machine Learning, and Mobile Technologies are an important part of the company strategy. “As a global company focused on advanced decision analytics, our goal is to anticipate the needs of our customers”says Antonio García Rouco.

The Unique Decision Making Architecture

In this sense, the architecture the company has built is helping lenders to get the advantage of the in-house and external data sources, combining them with advanced analytics techniques. The ultimate goal is to identify the right decisions at the right time for each and every of the institution´s customers. GDS Modellica’ s unique business proposition has been designed by and for risk users to be used with minimum involvement from internal IT or third parties. The company’s Analytic Platform, built on this architecture, offers flexibility and robustness, and an easy way for lenders to adapt, automate, speed, scale and deploy sophisticated decision-making technology on-premises and in the cloud environments. The technology is fully integrated with the bank’s existing infrastructure. The platform meets customer needs, not only from the decision-making side but also from the data gathering side. The company provides connectors to most of the available data sources around the globe, including financial data, ID verification or KYC platforms. The components have the capability to collect data in any form, structured or unstructured, from traditional or big data environments.

“At GDS Modellica, we believe that it is important to take a holistic approach to tackle risk, fraud, AML or any other aspect related to the credit customer life-cycle. It is crucial to take advantage of all possible internal and external data available and to involve in the process advanced analytics, decision management technologies and machine learning techniques when appropriate" adds Garcia Rouco.

Once the platform has collected all the required data, GDS Modellica enables risk users to deploy their origination, customer management, collections or fraud policies using all the data, legally, available and combine it with optimisation and analytic models. The eventual aim is to help banks to boost profits, get risk under control and feel safe against reputational damages. In addition to this, the company is offering digital communication channels, using chatbots and Artificial Intelligence, to help institutions to interact and increase customer experience across life-cycle.

Covering All Aspects of Consumer credit Decisions

In recent years, banks and other credit organisations, have seen how an incremental number of defaults, and its provisioning requirements, have added additional pressure to the bottom line of its P&L. Collections & Recoveries has been seen historically as a task performed by flooding debtors with letters, emails, and calls, which has revealed a costly and highly inefficient way to manage the process. To move to a smarter collection´s process, GDS Modellica Collection Suite enables lenders to segment the portfolios and define specific strategies for each of its delinquent clients providing digital or traditional channels to interact in an effective way. The smarter the process, the better for everyone is one of the mottos of the company.“Applying advanced and personalised strategies and using non-invasive digital channels will return higher benefits and increase customer experience and loyalty to the credit institutions,” says Garcia Rouco.

When it comes to loan originations, GDS Modellica empowers its customers to reinvent the origination process by bringing a set of market-leading technologies and analytic capabilities together into a single and powerful framework. Modellica Origination Engine achieves this goal through a flexible end to end platform covering all type of portfolios, from credit cards and loans to mortgages and credit lines, both in the retail and SME (Small and medium-sized enterprises) spaces.

Credit organizations can even initiate the process through an interactive digital channel by using bots to capture the right data from the customer and deliver the ultimate decision as part of the decision process. Once the consumer application data has been filled out, the rest of the credit data available from the market will be added in order to submit the whole set to the decision-making process where policies and analytic models will be executed. Once the decision is taken, the customer will receive the answer through traditional or digital channels with the possibility to finalise and sign the contract digitally. All the process happens under the control of the institution, without need for IT coding when the risk users want to add or change current policies or rules. This kind of technologies, based on the “ongoing strategy improvement”, is dramatically decreasing the time to market in the design and deployment of the organization strategies.

Driving Innovation based on Client Needs

For over 14 years, the company has collaborated with hundreds of institutions, in more than 36 countries, delivering solutions tailored to specific firm needs. With banks, utilities, insurers, retailers, credit card issuers and all type of lenders as part of our customer portfolio the final goal has been, in all the cases, to help the organizations to achieve higher growth with the minimum risk possible. As an example, we can mention an international credit group who faced the challenge of meeting high customer expectations while maintaining consistency in the decision-making process across different channels and markets. Using GDS Modellica´s technology and expertise the institution´s underwriting process achieved a double-digit increase in take-up rate while reducing losses and increasing balance over 15 per cent. As a collateral effect, their dependency on IT to implement new policies was close to zero.

Innovation-driven by the needs of clients is vital for GDS Modellica. “We understand the impact of data quality through the analysis and decision-making process. Hence we will keep working and helping our clients implement advanced data gathering processes,” says Garcia Rouco. The company will also continue investing heavily in its decision management technology to enable clients to embrace the power of cloud analytics, boost customer experience and move to the hands of the institutions the ability to manage smartly the customer journey across multiple devices and channels.“We strongly believe that revenues and profits will migrate at scale toward institutions that successfully use analytics and digital technologies to automate its decision-making processes across customer lifecycle. Being able to meet regulatory compliance and improve the customer´s experience are important components of the value proposition” says Garcia Rouco.