Perhaps the most important use of GIS in the banking industry is regulatory compliance (Tavakoli A. 1993). The Community Reinvestment Act (CRA) and the Home Mortage Disclosure Act (HMDA) are both laws which were passed in order to ensure that the banking industry does not practise “red-lining”. Red-lining is the illegal practice of geographically discriminating against groups (primarily minorities) by refusing to meet the credit needs of customers. For example, if a bank has a branch in an area and accepts deposits from customers within that area but refuses to lend money to those customers, that is considered red-lining. Red-lining reporting is done at the census tract level, making it an ideal application for business geographics. Banks use GIS to analyse whether they are guilty of red-lining, and if not, to help prove to regulators that they are not. Theoretically, if they do find that they are guilty of red-lining, they can use GIS to market to specific groups of customers in order to increase their lending activities within an area: I say “theoretically” because I have not heard of a bank that has admitted to using GIS this way since to do so would also be to red-line in a different way, which would also be against the law. Continue reading GIS for BANKING – GIS for Business and Service Planning
After “the past and present of customized and proprietary GIS”, the authors continue with the “GIS futures” at the time, specially for retailers – both for site selection and for other tatics, like retail performance modeling and network performance modeling too.
“Given the range of issues that retailers are now addressing and the more complex problems that GIS will need to consider, proprietary system development must proceed by responding very sensitively to the needs of the client. Only in this way will development remain relevant. There will be a greater role for additional support services alongside software systems and a greater need for tailored and customized solutions for particular problems. Continue reading GIS FUTURES – GIS for Business and Service Planning