Why title this post ‘New Applications of GIS’?
Location technology and GIS are being used in so many new and exciting areas, we wanted to write about new ideas and applications. Here we discuss applications of GIS in the world of banking, and in particular loans.
Reducing Loan Risk with Location Analytics
Loaning money is at the very heart of our banking system. If we wish to buy a house, a car, remodel; often we will turn to a bank for a loan. But any loan comes with risk to the bank. Thus the paperwork and background checks. Banks need to feel comfortable you are I will pay back this borrowed money. GIS and location analytics in particular are now playing a key part in helping banks in this decision making process.
Today most loan applications are made online. The process involves providing detailed information about your job, and background. Your application is then processed, with credit reports generated and algorithms run to qualify or disqualify your application. This is a person-centric approach. So where does GIS come in?
Location analytics provides the bigger picture. By generating data about where you live; your neighbourhood, banks are provided with a deeper, richer picture. Greater insight means better decision making. This in turn helps to reduce risk. (more…)