GIS, Geodemographics, and Spatial Modeling in the U.K. Financial Service Industry

Abstract

Geodemographic systems can make important contributions toward more effective marketing andbranch location research within financial service organizations. This article reviews the potential ofgeodemographics to support various activities undertaken by financial institutions and discusses therole that Geographic Information Systems (GIS) can play in enhancing geodemographic products.Reviewing a number of application areas, the article evaluates the contribution that spatial modeling,coupled with GIS, can make to the market research undertaken with these geodemographic products.Although GIS and geodemographics are important analytical tools in the financial service market, theaddition of spatial location models is crucial to better business decision making. They provide greaterand more accurate analytical power and can address more focused questions related to developmentstrategies, particularly concerning what-if planning. Geodemographic systems, coupled with spatiallocation models and GIS, can provide greater predictive power and greater flexibility to support decisionmaking about branch openings, closures, and company mergers.