Trade Area Analysis

Every bank is affected by the geography of its market. While nearly all bankers have some knowledge and understanding of the market, comparatively few know and understand the dynamics of their individual geographic trade areas and how these dynamics affect their ability to grow their banks profitably.

Trade area analysis analyzes the Bank's customer base, both deposits and loans, and their distribution and dispersion within the existing branch network. This analysis is based on the customer's proximity to the office and results in the definition of an effective trade area, by branch.

The analysis is based on GIS (geographic information system) technology and allows bankers to visualize:

• Various concentrated markets for specific groups of customers, i.e. business versus consumer, highly profitable versus other not so profitable customers, ect.
• The competitive situation for these types of deposits of loans - i.e.
• Competitive branches of other banks
• Small business lending patterns
• HMDA lending patterns
• Land Use patterns commercial & industrial
• Potential areas for new branch locations
• Land use patterns
• Business concentrations
• And More!

Using this technology, you can focus your Bank marketing dollars and business development efforts in a highly targeted manner.

The result is an "uplift" in your response rates and sales efforts - A reduction in cost and increase in market penetration

For more information contact Bouton & Associates at (619) 579-9099 or
sbouton@gisbanker.com