The CRA has long focused on promoting equity and inclusion in financial services, but many banks are still missing key opportunities to maximize their impact. Geospatial analytics combined with AI can uncover underserved areas that traditional methods often overlook, enabling banks to make smarter, more targeted investments.
Did You Know?
A report by the U.S. Census Bureau found that 32 million people live in census tracts classified as CRA-eligible, with significant opportunities for lending. Many banks fail to identify all potential qualifying areas, which can lead to missed opportunities in growing their loan portfolios. Moreover, a study by McKinsey shows that banks that engage more actively with underserved communities can see a 20-40% increase in cross-sell opportunities, including consumer and small business loans.
Opportunity to Monetize:
PathFinder’s AI and geospatial tools allow banks to pinpoint CRA-qualifying census tracts more effectively, leading to better lending strategies and higher conversion rates. Banks can utilize this data not only for mortgage lending but also to expand their presence in non-mortgage lending, such as auto and small business loans, in these regions. Additionally, banks that actively market to these underserved areas often qualify for federal incentives, further increasing profitability.
Monetization Insight: Banks that proactively target CRA-eligible areas with PathFinder’s AI can expect an increase in non-mortgage lending by an average of 15-20%, with potential for higher returns through cross-selling.