ADI taps into its BI tool ADI Data ConnectSM to identify real geographic areas of opportunity.

Assessing the Challenge

During a CRA consulting engagement, a need arose that required the identification of census tracts where the client could focus its advertising and other strategic efforts to penetrate the low- and moderate-income (LMI) neighborhoods. While it is relatively straightforward to observe the census tracts where the client did and did not lend, determining which LMI geographies are the best opportunity for lending can be a more daunting challenge. This can be especially true in inner city neighborhoods that often make up a substantial portion of LMI geographies in an assessment area but may have confounding characteristics, such as low homeownership rates and high home values, that can make it challenging to penetrate.

Designing the Approach

To overcome this challenge, ADI consultants leveraged ADI Data ConnectSM to help prioritize geographies that best fit the client’s business model. The extensive collection of demographic data available in ADI Data ConnectSM can provide the context needed to identify and target geographies of realizable opportunity. The approach required ADI compliance consultants to extract selected demographic and socioeconomic data by census tract and append them to the client’s data set. A table would then be created to allow the client to sort and identify the geographies based on these characteristics. Reference maps would also be provided, allowing the client to easily locate the target areas in executing its strategy.

Implementing the Solution

ADI’s compliance consultants extracted and summarized the demographic data by census tract for each county in Massachusetts. A metric was also calculated using housing units, homeownership rates and past lending activity that measured units with opportunity for each census tract. The resulting interactive Excel workbook allowed the client to drill down into each county and market to identify the geographies where it was under-penetrated and more likely to find LMI applicants. This solution gave the client an easy way to target census tracts with greater opportunities for penetrating the LMI market.


About the Author: Jonathon Neil

Jonathon is a Senior Consultant for ADI with expertise in Fair Lending compliance, CRA compliance, data mining, and geographic information systems. You can contact Jonathon at or 703.665.3707.

April 9th, 2015|