GDS Link 2014 Fourth Edition Newsletter

GDS Link, a credit and risk management software company, released its fourth quarter newsletter describing the success of the end of 2012 and the expectations for this coming year.
In general, GDS Link had a successful year, expanding to more clients in a variety of lending services both worldwide and in the U.S. GDS Eurasia launched GDS TKN, a commercial credit score for the Turkish credit bureau KKB in March of this year, with the goal of helping Turkish financial institutions make faster and more accurate credit-related decisions. The tool was also designed to help improve business’ access to credit.
GDS Link’s CASECenter Management solution also helped the company create customized tools for its clients, improving the quality of lending.
Last year, GDS Link also looked more heavily into the financial industry in Africa, and what credit tools would be needed most. The continent remains largely unbanked – 80 percent – and those financial institutions that do exist largely lack the proper credit and other information needed to extend services. However, new technologies may be able to fill in the gap.
Mobile phone use has grown in the past 10 years, and information from these payments is being used by some institutions as a form of data for credit. Some financial institutions are actually partnering with mobile phone companies to expand their clientele.
Currently, many customers rely on microfinance organizations and companies for loans, which is a service commercial banks are hesitant to offer due to their unfamiliarity with this type of lender. However, some banks have begun entering this industry – proving that it can be done.
The report also noted that Islamic Banks are expected to manage $1.8 trillion in assets by 2016, with much of its success credit to Africa. The growth of Islamic Banks in Africa is not necessarily because of the high Muslim population, but instead because of the reputation these banks have. A financial institution with high morals is less likely to invest in risky assets.
In all, despite Africa’s high unbanked and rural population, these trends, along with a steady migration to the urban areas point to potential in the continent’s workforce.