GeoBI for banks and financial Institution – Part 2

In the last few years, drastic changes are underway for the financial sector, reflecting on a number of fundamental business and development trends.

Significant advances in communication and information technology have accelerated and expanded the distribution of financial information and financial services, and the need for complex data analysis has emerged.

The main impetus for change is increasing competition in a wide range of domestic and foreign institutions providing banking and related financial services

THE ROLE OF BI AND GIS TECHNOLOGY IN DIFFERENT FUNCTIONAL FIELDS OF BANKING

  • Market Analysis
  • Analysis and identification of users
  • Marketing orientation
  • Focusing on new potential markets / new branches
  • Planning and analysis of ATM network
  • Strategic Asset Management
  • Citizenship accessibility – web based solutions

Deciding on a loan to buy a property based on spatial analysis: No GIS database in use!

Classical analysis of assets by parameters:

  • Distance from main road, lot size, actual owner check, etc.
  • Exclusively on-site or in contact with a third party
  • Requires a lot of time
  • Is a risk
  • Using a GIS database one can
  • Perform spatial analysis with just one click on your computer
  • Calculate the area or distance from the main road without going to the terrain
  • Calculate the value of land in the area by analyzing the surrounding area
  • Creating a central database system to prevent duplicate loan processing if the request relates to the same property
  • It can significantly reduce the time from application to realization, …

Deciding on the number and location of ATMs and branches

Bank’s interest:

  • Provide a quality network of ATMs and branches in a specific area
  • Concentration of commercial land use,
  • Debit / Credit Card Holder concentration
  • Schedule of ATMs and outlets,
  • Concentration of users, frequency of card payments,….

With the GIS tool:

  • Finding the optimal ATM position
  • Finding the optimal branch position
  • Defining factors / criteria relevant to the business
  • ATM and branch security

Deciding on potential locations for new investment sites for a bank or investor

The Bank may also make decisions to find or identify new potential locations for new investments through GIS.

Using standard maps and spatial plans, they can analyze areas with potential for economic growth and the existing development model themselves, and decide whether to invest in the area.

Applying the GIS database can do the following:

  • Regional analysis of the identification of profitable investment sites
  • Identify different POIs of the area
  • Identify existing land uses
  • Identify major industries
  • See environmental restrictions, spatial planning,…

What do financial institutions gain from this?

  • Dynamic customer service improvement
  • Significant reduction in maintenance and processing costs for banks
  • Ability to choose the best location for a new branch or ATM
  • Choosing the best way to deliver money using a van
  • Facilitate the loan processing process using a central GIS database and enable the online spatial data management process
  • Reduce the number of people in the process / less processing and business costs
  • Maintaining the database is easy and the price is very affordable
  • Banks can pay off their investment in GIS after one month of application

Example 1: Where are our ATM, where are our customers?

Example 2: Where we have office near shopping center?

Example 3: Valuation of real estate, valuation of risk

Kriging method

The simplest principle of kriging is to present the series of equations by which it is defined.

Kriging estimates the values ​​of the regionalized variable at the selected location (Zk), based on the existing surrounding values ​​(Zi). Each of these existing values ​​is associated with a corresponding weighting factor (λi), and the method of their calculation is the most demanding part of the Kriging algorithm.

Kriging as a method contains several techniques:

  • Simple Kriging,
  • Ordinary Kriging,
  • Indicator Kriging,
  • Universal Kriging i
  • Disjunctive Kriging

CONCLUSION

  • Banks and other financial institutions can significantly improve their operations by integrating BI and GIS into their daily activities
  • Application of BI and GIS can save money, time and manpower, which is essential for making quality business decisions in a timely manner
  • With the huge amount of data available to banks, geospatial data will only be an Add-In to existing data sets
  • Establishing a center, connecting and sharing certain data sets with third parties, the whole process becomes very cost effective for banks and other financial institutions

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