Way back on December 13, 2010, I discussed "Income as a % of MSA Median". It is essential for any financial institution to create such a map of their Assessment Area. Using a Geographic Information System (or Desktop Mapping program), the institution has the ability to see their own activity on the map. By geocoding their loan applications, each loan application record is assigned to a Census Tract. You then display all of the loan applications as Pie Charts (one pie for each census tract); the size of the pie corresponds to the number of loan applications in each Census Tract (more applications = larger pie); and each slice of the pie represents the outcome of the loan application (Originated, Denied, Purchased, or Other). The legend indicates that the most loan applications in any single Census Tract is 27. The other Legend numbers are simply for visual reference: a pie one-half the large size corresponds to a count one-half of the maximum value (in this case, 13.5); and a pie one-tenth the large size corresponds to a count one-tenth of the maximum value (in this case, 2.7). The "pie chart sizes" are ment to be "visual references" allowing spatial interpretation (more over here, less over there) - spreadsheets, on the other hand, are very good at conveying exact information (there are exactly 25 loan applications in Census Tract 2054.00, and exactly 12 loan applications in Census Tract 2084.00).
This map shows the Census Tracts shaded by Income Level, with the Pie Charts representing Fictional Bank's 2010 activity in the area:
Of course the first two questions are:
Why does Fictional Bank have so few applications in the low-income areas of Lynn?
Why does the Bank have a much larger percentage of denials in the low- and moderate-income areas?
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