The always rising competition within the Banking and financial sectors to gain some competitive edge is being witnessed across the globe. The success of this industry mainly relies on the power of the industry to establish a larger customer base and dispense market based services. As a solution, these industry has adopted several methodologies one which mainly applies geographical information systems. The banging industry around the globe is rapidly changing particularly over the last few years which also showcased great developments. Major developments in information technology as well as communication broadened and accelerated the propagation of banking information and services.
Geographical information systems have now become an essential tool in aspects related to location analysis as well as informed decision making. According to, the rise in adoption of geographical information systems in commerce is partially due to the readily availability of data as well as businesses wanting to take advantage of GIS in their operations. The ease and cost of migrating most data types which organizations may require is also another cause in the success of GIS business adoption. Banking is actually a knowledge intensive service data management, record keeping, and business intelligence, process monitoring are really critical for the banking industry due to the high amounts of data generated within daily financial transactions. Connecting the data with space just the way that geographical information systems does, is the best approach to assist financial institutions or banks to better understand their customers and data.
In the banking industry globalization environment it’s being dictated by competition that keeps being tough each day. Customer oriented financial services is the best approach to stay in touch with this trend. By establishing connection with the banking industry, customer oriented services offers efficient and convenient services to the customers like address inquires, financial inquiries and operation inquires. The quality of customer service is directly influences the banks quality of service. From the time banks established customer service centers, as per the statistics, approximately forty percent of the inquiries received by these centers are closely related to geographical information. Reported inquiries included ATM locations as well as the geographical location of the bank branches given that most ATMs are located close to bank branches.
The fact that financial institutions service centers have greatly expanded the institutions service areas, providing convenient and efficient geographical information is the best way to improve the quality of customer service. Geographical information systems would obviously be critical in solving issues regarding the location of ATMs in a bid to improve customer service. In addition, geographical information systems is important in knowing where there is many potential customers. Having access to reliable information is essential for decision making and is fundamental to deal with competition as well as attracting and retaining banking industry customers.
As a result of these developments, the financial sector is being faced with major competition; the best approach at the moment lies in deployment of strategies that are market driven such as establishing a network of banking transactions at designated centers in order to reach out to many customers. One good instance is the reliable network of Automated Teller Machines centers which facilitate easy and quick banking transactions for customers and easing the burden on branch banking. To establish new ATM locations financial institutions always look for points that have high demand and are easily accessible. Demand within any geographical location bases on the lifestyle, character, spending statistics and earning power of the residents. All these features can be taken as geographical entities thus geographical information systems can play a major role in coming up with strategies to situate ATM centers.
The advent of GIS has attracted growing interests in the power to analyze spatial behavior patterns. Geographical information systems are becoming essentially important for aspects of decision making and location analysis. Connecting large sums of data using spaces similarly to how it is done in geographical information systems is a new technique of assisting financial institutions enhance their services. Geographical information systems makes it easy to store huge chunks of digital information as well as allow modelling, statistical analysis and visual display of data. It offers a powerful fresh tool that has inspired existing and new research using geographical data and concepts.