3 Ways Modular Platforms Shake Up Risk Analytics

Risk Analytics Software

Risk analytics are changing the lending industry. The technology is empowering alternative lenders to profit off of smaller loans with higher levels of risks than traditional firms would be willing to take on. It’s giving major banks the big data power needed to enact new strategies, employ automation and offer modernized lending models. But it has left many regional banks and credit unions in a situation in which they’re scrambling to keep up.
The alternative lenders disrupting the market can use analytics because they aren’t dealing with the regulatory pressure and varied infrastructure systems of a typical financial institution. The big banks have the budget to handle the IT investment that comes with full-scale analytics programs. It’s the mid-sized regional firms that are left out in the cold. Modular risk management platforms are changing this.

“Credit risk analytics are changing the lending industry.”

A modular platform is built of matched components that can be used individually or in a unit. For example, instead of investing in a full-scale analytics platform, you could implement a credit decisioning model that lets you bring alternative data sources and analytics into some of your credit analysis processes.
As that technology delivers value and leaves you with more money to spend, you could then add a module focused on loan application processing. The options to expand and right-size the solution are widely varied, giving you freedom to focus on what you can handle now and grow into a larger analytics framework over time.
This scalability comes with a variety of benefits. Three of the most prominent advantages include:
1. Solving pain points
Maybe your market situation doesn’t dictate a full dive into analytics at this point. Maybe you can’t justify the purchase or get executives on board until you’ve demonstrated returns at a small scale. If either of this situations are serving as an innovation roadblock for your organization, a modular analytics platform lets you target your most pressing pain points. As a result, you can not only minimize your initial investment, but also ensure the greatest possible initial impact.
2. Streamlined release processes
The modular nature of emerging risk analytics software platforms allows for a much easier IT project when it comes to releasing and managing the solution. In many cases, it’s possible to implement a cloud system, but the inherent flexibility and scalability of a modular design means there isn’t a lot of technical overhead introduced with integration and optimization. Each component works seamlessly with others, and rolling out individual modules as needed circumvents dealing with a single large tech project.
3. Flexibility
The financial services market is going through a period of rapid change, and you can’t afford to go through a multi-month IT deployment only to have your needs shift by the time your new system is in place. The rapid release cycles and natural flexibility of modular risk analytics platforms make for a much more agile, adaptable dive into the big data world.
GDS Link is leading the charge in modular risk analytics. Our platform comes with a variety of deployment and service models. We also provide consulting to help you identify the strongest analytics use cases as you get your project off the ground. Contact us today to learn more.