Abstract

Assessing Low & Moderate Income Markets in Banking
Track: Financial Services
Authors: Elio Spinello, Scott McClymonds

Arvest Bank is a large regional bank based in Arkansas and service a four-state area. In 2011 and 2012, Arvest and RPM Consulting developed a comprehensive assessment of the low and moderate income areas located within the markets Arvest serves. This analysis was used to assess Arvest's success in serving the LMI market, in addition to determining their unique needs, which that Arvest is able to address.


The study involved the use of the ESRI Business Analyst, together with a variety of external datasets used to identify the confluence of socioeconomic status, competition, branch branch network presence, and customer presence within the markets. As a result of the study, a comprehensive report was developed for executive-level management together with a series of recommendations designed to help improve Arvest's ability to serve this important segment of the market, as well as to ensure compliance with the Community Reinvestment Act.