A Geospatial data approach to retail micro-market Qorus Banking Innovation Awards 2015 - Winner

India, with an area of 3,287,000 square kms and a population of 1.2 billion spread across 29 states presents a lot of opportunities for a retail banker. However, the size and complexity leads to unique challenges: • Understanding various micro-markets and tailoring strategies accordingly • Designing the branch/ATM expansion strategies across a diverse geographical region • To strike a balance between centralized/local decision making ICICI Bank recognized the importance of geo-spatial analytics in driving a business model that would not only be profitable but would also provide a sustainable expansion in terms of physical reach and growth. There are three aspects to geospatial analytics detailed below: • Data Collection: ICICI Bank collects data from multiple sources and puts a heavily analytical governance framework around the quality of data acquired and finally the same is harmoniously merged to form an action oriented data structure • Data Processing/ Insight Generation: ICICI bank extensively uses data overlaid with a geospatial element in formulating and executing overall bank strategy. Some of the techniques used are: o Micro-market potential estimation – Creation of potential index o Predictive analytics – Next likely transaction that the customer will make , based on customer location o Spatial clustering – To find dense clusters of population o Network analysis – To understand geographical spread of customer transactions • Data Dissemination: Complex models are also used to drive micro-market expansion strategy which is risk-return engineered. Local teams are empowered with neatly crafted summaries of catchments to drive strategies Result Sales team benefited by getting 360 degree view of the catchment (micro-market) which in turn helped in gaining market share. Application of Geo-Spatial concepts enabled central team to take several strategic decisions.