GIS – Tool for Simplifying the Collection Management System in Banks and Financial Service Organizations  P K Panigrahi Faculty, Loyola Institute of Business Administration (LIBA), Loyola College, Nungambakkam, Chennai, State- Tamilnadu, Pin–600 034, India Email: p_panigrahi@lycos.com P. Vijay Sagar EGIS Solutions Private Limited, Chennai, India, Email: pvsls@yahoo.co.in P. Ronald Raajesh Sr. Area Executive, TVS Motor Company Ltd., Vijayawada, State: Andra Pradesh, India Email: ronaldraajesh_p@hotmail.com Abstract In today's competitive world, there is an increasing need for exploiting spatial information for effective management of enterprise in virtually every industry. Therefore solutions and applications based on Geographical Information Systems (GIS) integrated into enterprise systems provides medium to large enterprise users with the ability to make quick business decisions for better efficiency, quality and productivity. Banks and Financial Institutions thrive by the financial services that they offer like, a variety of loans, credit cards, etc. Liberalization has brought multinational players into the banking industry and recent economic trends have increased cash inflow into banks resulting in increased and fierce competition among banks to increase the number of customers who avail these financial services in order to maintain a profitability status. But in this effort to increase the customers, banks have started forgoing the multitude of checks that used to be conducted before granting any credit facility to a customer and have started setting simple authentications like salary slip and bank statements. This has drastically increased the number of credit card defaulters and defaulters in loan repayments. This has forced banks to create a separate ‘Collections’ department, increasing the cost of operations and decreasing the profit margins. This paper proposes ways and means through which an integrated GIS approach would enable banks to locate current defaulters, identify the shortest distance through which maximum number of defaulters can be visited by the collection officer, areas of concentration of a particular type of defaulter, identify the best location for collection boxes and ATMs in various zones, identify potential defaulters from existing customers who have availed loans, identify demographic patterns of the various types of defaulters and use it to find the probability of a customer who have applied for a loan but become a defaulter. |