Banking GIS – A New Approach in Bangladesh

GIS is now-a-days a very useful tool for decision making. Whenever it requires making a decision related to “location”, it comes to the information ‘GIS’. GIS makes these location related decisions and examination very easy. It makes the examination simple and precise if the inputs are correct. consequently one can have the benefits of analyzing spatial data in addition as socio-economic data in GIS platform.

GIS in developed countries

Developed countries like USA, UK, Japan are using this technology enormously in different business sectors beside development activities like real state business, banking, information sharing and so on. They use it to leverage their functionality and also increase output. With GIS, the productivity is increased and also the decision making jobs are very easy and accurate.

GIS in Bangladesh

In recent days, GIS technology is used in different sectors of Bangladesh. But the matter is it is only used to prepare a resource map or risk map of an area. The analyzing strength of this tool is merely used in those areas. The organizations working in development sector are preparing maps and reports. But the funny matter is maps are prepared in one cell. The person working in this cell is well skilled in GIS technologies but he has very limited access or time to see the reports. The reports are prepared by another person who has very limited knowledge about the technology. As a consequence, the prospect of this great technology is overlooked. Again, the scope of using GIS technology is very great. As mentioned earlier, location and GIS is related to each other. consequently any organizations working with location data can use this great technology to enhance their activities. For example, the banking sector has to work extensively with location. They have to locate their account holders or locate a plot or character if anyone wants to take loans. Again any business organizations can use GIS tools to increase their business in different areas. They can use this tool to take decisions about establishing their advertising boards or choose their routes to supply goods. The GIS technology can also be used to clarify future growth of the city and establish new areas to business. In the following discussion, prospects of using GIS technology in banking sector are highlighted. It is not a complete study report. There may be many other sides where GIS can be useful for edges to increase their performance and customer sets.

1. Decision regarding sanction of loan- spatial examination of the plot.

One of the monotonous jobs in banking system is to provide loan service for the clients. edges do so as to enhance their accessibility to the customers. It’s been being a competition among the edges that how a bank is providing these service. In doing so, edges need some security like some visible character or established business etc. Now where comes the visible character, the GIS also comes there. edges take mortgage to sanction and specify the amount of loan. In doing such decision, edges have to analyze the character or plot like distance from the main road or size of the plot, verify the actual owner of the plot, current land valuation etc. They are doing these things manually by going to the sites or contact with third party for doing these jobs. This takes at the minimum 30 days to do the jobs and also have to use a lot of money. It also need a lot of time to make the decision. however there is another chance to use the same plots to different edges for loans.

But if they have a GIS database, they could do the followings easily:

o Do the spatial examination easily with just one click on the computer.

o Calculate the area or distance from main road without going to the site/plot.

o Calculate the land value of the area by analyzing the surrounding area.

o Creating a central database system to prevent the double loan takers utilize same plots.

o Can reduce the investment time by 30 days.

This is a big factor for any edges to reduce their investment time. If they can save 30 days they can have a profit of BDT30-40 lacs (US$42857.14-US$57142.85) per year.

Bank just need the following information for this examination:

o Plot/character location (address).

o Owner name.

o Plot size (area).

o Distance from the main road.

o nearby road width.

o Present land use (specific).

o Land value.

o Information of the plot i.e. past owner, case, past loan taking condition etc.

o Crime rate of the area.

Many of the data like plot size, distance from the main road, nearby road width, present land use etc. can be derived from the digitize map of an area. Others are to be collected from the field level survey.

2. Decision regarding formation of ATM booth.

Now a day’s banking service is increasing rapidly. Every bank is trying to take the sets to the customer’s home or offices. ATM is one of them. But to provide an ATM machine to an area, Bank has to think different spatial issues like concentration of commercial land use, concentration of debit/credit card holders of an area, route for taking money to the ATM booth etc. These all can be done easily with a GIS tool.

Decision derived from the map regarding ATM booth:

o Area an ATM serves.

o Factors to establish an ATM.

3. Location of the loan takers.

Bank is now spending a lot of money to locate the account holders or loan takers. They are communicating with their client at regular interval to locate them. This job can be made very easy with GIS as here a loan taker or client can be easily identified in the map. But for this, the database has to be regular updated as this is presently done.

o Present address of the loan takers.

o Change address.

o Distance from the branch and route to the address.

4. Best route of the van to deliver money to the ATM booth/branches.

This advantage is discussed slightly earlier. A bank has to analyze thoroughly to select the delivery route of the van to take money to the ATM booths. They have to think about the security. In GIS, they can do this with creating simple network topology of the existing road and select the best routes to take money.

5. Decision regarding formation of new branches.

As banking sector is a fast growing field in Bangladesh, many new edges and branches of existing edges are establishing now. They have to take into account different spatial issues to establish a new bank or branch. For example, they have to do the followings things:

o Have a general idea of the area like land value, socio-economic condition etc.

o Locate the commercial land use of the area.

o Locate the bazaar or market area.

o Locate the residential area and business area.

o Locate the existing road network.

All these things can be easily done with a GIS tool by analyzing and querying to extract the data.

6. Decision regarding selection of new investment sites for edges or clients

edges can also take decisions to locate or clarify new possible sites for new investments by GIS. They can analyze an area with potentiality for economic growth, existing pattern of development and come to a decision whether they invest in that area.

With the GIS database, a bank can do the following:

o Regional examination to clarify profitable location to invest.

o clarify different allurement points of the area.

o clarify the present land use and industry of an area.

Advantages the Bank can get:

o enhance the customer sets dynamically.

o important Reduction of the maintenance and processing cost of the Bank.

o Select the best location to establish a new bank or branches.

o Choose the best route for money delivery van.

o obtain the loan course of action by maintaining the data in central database and proportion it by online data management course of action.

o Reduce the head count.

o Database maintenance is very easy and cost is very low.

o edges can save their investment related inquiry by one months.


In conclusion, it can be said that edges can have lot of advantages by introducing GIS in their daily activities. It can save money, time and manpower which are the target of any business organizations. It is very important to manage the data as there will be a great amount of data they have to manager. But by establishing a cell or by giving third party the duties to manage and proportion data, the procedure can be a very profitable for edges or other business organizations.

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