Banks seeking to improve their CRA lending performance while advancing racial equity must look beyond traditional lending practices. Geospatial analytics is the key to identifying where the greatest opportunities for impact and growth lie, ensuring banks can make the most of their CRA investments.
Did You Know?
A recent report from the National Community Reinvestment Coalition revealed that nearly 50% of minority-majority communities are underserved by CRA-qualified loans. Geospatial analytics enables banks to find these underserved communities with precision, allowing them to deploy resources where they’ll make the biggest impact.
Opportunity to Monetize:
PathFinder’s geospatial tools help banks not only improve their CRA performance but also deliver meaningful racial equity outcomes. Banks can strategically target racial minority communities for lending, increasing loan originations in these high-demand areas. Additionally, there’s a growing market for offering financial literacy programs to these communities, which can lead to long-term relationships and cross-sell opportunities for personal loans, business financing, and more.
Monetization Insight: By focusing on racial equity through CRA lending, banks can generate a 12-15% increase in loan volume while improving customer loyalty and engagement with minority borrowers.