4 Ways GIS Data Strengthens the Financial Sector

The financial industry is one that was built on personal relationships between customers and bankers, tellers, advisors, and other financial professionals. Even with the industry’s inevitable migration to the online world — 7 out of 10 Americans access their bank accounts online or through apps¹ — there is still the need to maintain a standard of personal service.

As in other industries that rely on map data, GIS helps decision makers within the financial industry make choices about their organization that directly impact the customer experience.

Location Selection

There is an obvious connection between service and customer accessibility. GIS data provides insights into location selection that go beyond geography.

For example, knowing the road and electricity infrastructures or distances to other branches (and those of competitors) allows for realistic analysis of location viability. GIS can also carve out socio-economic indicators within a given area. This data is helpful in setting performance expectations and earmarking opportunities for branch expansions, consolidations, or closings in order to optimize resources without inconveniencing customers.²

Marketing

GIS data powers digital maps, which are pivotal marketing tools. Knowing exact locations, available services, hours, etc., within a few clicks makes it easy for customers to connect with the services they need.

There are other marketing strategies that GIS data can help maximize. Billboard placement, for example, is generally a multi-thousand dollar investment. ROI is nearly as important as messaging — and both require people seeing the billboard. Traffic patterns, commuter data, and demographics within a given market can all be pinpointed through GIS to identify ideal billboard positioning.² Similarly, direct marketing campaigns benefit from this type of data because events (e.g., new product launches, community involvement, etc.) can be more closely matched to customer preferences and proximity.²

Fraud Detection and Prevention

A 2019 Featurespace survey reflects customers’ heightened sensitivity around fraudulent activity. Over 60% of survey respondents believe they are at greater risk of fraud than they were two years ago, and nearly 80% check accounts weekly for suspicious activity.³

What difference can GIS make in this area? Data gives financial institutions the upper hand in account monitoring. Transactions that fall outside of a typical geographic region, do not coincide with a customer’s normal spending patterns, or otherwise misalign with the account are indicators of potential fraud. Flagging suspicious activity based on compiled GIS data mitigates the risk and impact of fraudulent transactions.²

Staffing

GIS plays a key role in how financial institutions optimize staffing and control costs. Analysis of staff to customer ratios gives decision makers insights into where to add team members or downsize to accommodate customer needs.²

GIS data also informs how to best reallocate staff, if necessary. Knowing exact distances between employees’ homes and branches, driving route options, and availability of public transportation factor into staffing decisions. Productivity is the goal, and GIS helps minimize obstacles that could lead to employee absences.

The financial sector is entrusted with some of the most important parts of customers’ lives. GIS data helps shape decisions that promote confidence and positive experiences throughout the industry. Learn more about the benefits of leveraging map data in TomTom MultiNet: A Handbook for GIS Professionals.

SOURCES
¹ABA Banking Journal, ABA Survey Finds Online, Mobile Most Popular Banking Channels, October 16, 2018
²Insight2Impact, 7 applications of GIS data by financial service providers, Undated
³PaymetsJournal, Quantifying Fraud’s Impact on Customers’ Expectations and Behaviors, January 29, 2019