Raiffeisen Banking Group: Geocoding, Penetration Analysis, Customer Acquisition

How the Raiffeisen Banking Group Works with WIGeoGIS Products

The Raiffeisen Banking Group IT team developed an internal dashboard that incorporates the geocoding software JoinAddress and demographic data from WIGeoGIS as a strong foundation for data-driven analyses. This offers Raiffeisen employees several options:

• Display of customer distributions and market shares on a digital map
• Geographical assignment of (new) customers to bank branches
• Penetration analyses and market analyses
• Acquisition of new customers
• Assessment of key figures for sales controlling
• Comparison and benchmarking of Raiffeisen banks and bank branches

Image: Integration and workflow of the geocoder in the system landscape of the Raiffeisen Banking Group. JoinAddress, including the address databases, is operated in the Raiffeisen data center.

Assigning Customer Addresses to Bank Branches

Since Raiffeisen has more than 1,500 bank branches in Austria, it is important that every customer is assigned to a branch near them.

Specifically, each customer is assigned to a statistical enumeration district, the smallest administrative unit. The statistical enumeration district, in turn, is assigned to both a bank and a bank branch. WIGeoGIS also provides the necessary statistical data.

“The Raiffeisen family in Austria is divided into statistical enumeration districts, which we assign not only to a single bank, but also to a specific bank branch, so that we can be even more granular. This allows us to see on a map where there are bank branches, where the respective customers live, and where we already have many customers. This also shows us where there is still a lot of customer potential, but there is not yet a bank branch or ATM nearby.”
Peter Baumgartner, Product-Owner Controlling at Raiffeisen Software GmbH

Penetration analyses and market analyses 

In addition, the dashboard can be used to determine the market shares in the catchment area of each bank branch. This is possible because WIGeoGIS also provides data such as population numbers. Raiffeisen employees can also use the internal dashboard to find out how well they are represented within specific target groups.

Analyses of key indicators such as population, age, and purchasing power can serve as a basis for concrete action. Here, the age distribution of customers is particularly interesting: Where is Raiffeisen successful in attracting young customers, and where is there still potential to engage this target group more effectively?

Looking at the cross-selling rate can also provide valuable insight, for example, into how many products customers have on average per branch or catchment area. Is this rate above or below the group-wide average? What might be the reason if the cross-selling rate is below average? And how can it be increased?

Target Group Analysis and Customer Acquisition

The sales department also regularly runs special promotions to attract new customers, primarily in the corporate customer segment. Visualizing the addresses of potential customers and the related demographic data on a map is very helpful in this process. In order to capture the addresses of companies that are not yet Raiffeisen customers, they are manually geocoded using the JoinAddress Client. A target group analysis can then be performed based on the market data in the relevant catchment area.

Austria-wide Benchmarking - A Quantum Leap in Sales Controlling

In 2021, before the group-wide introduction of the internal dashboard, fed with demographic data and potential data from WIGeoGIS and powered by the JoinAddress geocoder, benchmarking was much more difficult for the Raiffeisen Banking Group. The databases at individual bank branches applied different parameters to key figures. When introducing the dashboard, the Raiffeisen Banking Group defined uniform key performance indicators for all of Austria.

“With this project, the key performance indicators truly became comparable for the first time. Now we can benchmark each other based on various key performance indicators. With this system, and especially thanks to the statistical data also provided by WIGeoGIS, we have achieved a quantum leap in sales controlling. Now we can evaluate customer shares down to the statistical enumeration district level.”
Peter Baumgartner, Product-Owner Controlling at Raiffeisen Software GmbH

Why did Raiffeisen decide to work with WIGeoGIS?

Raiffeisen Landesbank Oberösterreich has been working with WIGeoGIS products for many years. In 2021, the system was rolled out across the entire group.

There were several reasons for deciding to trust in WIGeoGIS. An important factor was the ability to process and store data on internal bank servers. A cloud solution, like those offered by a number of competitors, was out of the question for Raiffeisen due to data protection concerns. The expertise and solution-oriented approach, as well as the quick and reliable accessibility of the WIGeoGIS team were also key factors.

“I am extremely happy with WIGeoGIS because follow-up questions are always addressed promptly and professionally. If there are any problems with the software, the colleagues at WIGeoGIS always respond promptly and have always quickly found a solution. It was also a top priority for us to ensure that our data remained in-house. Since we were very satisfied with the solution we had been using in Upper Austria for several years, we also decided to use JoinAddress and the penetration data from WIGeoGIS for our group-wide internal dashboard.” 
Tina Hiebl, Requirements Engineer at Raiffeisen Software GmbH

Another key advantage is that all the WIGeoGIS employees can be contacted directly.

“We know all the contacts at WIGeoGIS by name and do not have to log into an anonymous ticket system whenever we have a problem.”
Peter Baumgartner, Product-Owner Controlling at Raiffeisen Software GmbH