Bank of America Uses Location Intelligence to Exceed Compliance Mandates
Location Intelligence is used to identify branches that are entitled to earn CRA credits and meet compliance mandates.
With the objective of receiving an outstanding ranking on Community Reinvestment Act compliance efforts, while maintaining bottom-line profitability, Bank of America needed to identify current and future locations for its banking centers. The law requires banks to locate branches where they will serve moderate-and low-income neighborhoods. With the goal of improving site selection decision making, the bank turned to Precisely for its mapping and geographic analysis expertise and location intelligence technology to meet compliance mandates.
The Community Reinvestment Act (CRA) calls for banks to meet the needs of borrowers in all segments of their communities, including low-and moderate-income neighborhoods. Banks undergo federally required performance testing to evaluate their CRA compliance level. In turn, these exam scores have a significant impact on an institution’s image with federal regulators and can affect a bank’s applications for new branches or for mergers and acquisitions. Bank of America needed a precise and accurate way to identify sites for new locations and to demonstrate compliance to regulators.
Bank of America turned to MapInfo Pro from Precisely to analyze CRA-related census tract data and clearly show bank management and auditors how the institution is exceeding compliance mandates while serving its communities — all in an easy-to-understand way, using maps and advanced reports.
“MapInfo Pro is an easy tool to use and we can rely on it to generate highly accurate data,” Weston explains. “The maps we produce using MapInfo Pro and present to management give a clear picture and can have a profound impact on business decision making.” Weston is responsible for leading a project the bank calls “determining store adjacency” that is designed to boost its CRA rating. The project involves examining the locations of all existing Bank of America branches and earmarking those within or adjacent to low-and moderate-income neighborhoods. The goal of the project is to identify and tally the number of branches in areas that entitle the bank to earn CRA credits and to make sure the sum of these locations well exceeds the requirement for compliance with CRA.