Does anyone know what the geocoding software costs?

Depends on the Software and what it's capacity is. We use a fairly sophisticated software that also provides us with marketing and CRA analysis. It also depends on bank size sometimes and how many people will be using the licenses. I spend around ten grand annually. We're a $2billion bank.

We are $11 Billion and spend around $42,000 annually for geocoding, analysis, mapping, and submission software.

We developed a geocoder to retail for $199.00 but the Federal Reserve Bank will not allow us to sell it. We argued it was an inexpensive and efficient tool that reduced a banks labor costs and made it easier for smaller institutions.

It accesses the FFIEC geocoder and absolutely does not violate any license agreement they have with their vendor.
(You now see a disclaimer on their web site that was not there prior to our developing the product.)

FRB attorney's told us that while we were technically correct the FFIEC Geocoder was not ment to be a prmary resource for banks to obtain geocoding from. Trust me this was an interesting conversation which only indicated an agency out of touch with the real world.

Its not the cost of the software that is expensive it will be the ongoing costs of updates to the database. You can probably outsource it cheaper than doing it in house. Especially if you have several thousand records to do.

If you only have a few hundred you can get geocoding on line for about $60.00 per thousand records.

I should also mention that if you subscribe and pay for quarterly updates make sure you are receiving what you are paying for. You would be suprised that you may not be.

"We are $11 Billion and spend around $42,000 annually"
"I spend around ten grand annually"

Good Grief. Want to pay 1/2 that call me.

I guess I am perplexed like Don. I can't believe someone is paying $42,000 for geocoding, mapping, submission software and analysis. We can provide most of those services for a fraction of the cost and we know software vendors with excellent products that sell for $1,000 to $2,000 annually. Like Don, I would be happy to take half the amount!

The price differences in the geocoders are because of multiple variables. The Geocoder could have different types of street data. For example, you could purchase a geocoder with Tigerline data for around $5,300 including data updates, software installation and maintanence. On the other hand you could purchase a geocoder similar to the FFIEC's geocoder that uses GDT data which is very accurate but is around $11,000. If you ever run a comparison demo, you will see the differences in point data placement. My suggestion is to purchase a subscription to an online geocoding service. No software to purchase, maintain, etc. You are only billed for the number of records you geocode. Our company has developed a custom application for users who want to purchase an online subscription, and geocode online, which is very easy to use. I don't see how geocoder of $1,000 - $2,000 could be very reliable or accurate. On the mapping and analysis, depending on the number of assessment areas and the depth of analysis, I can see how $42,000 can be justified.

As I stated previously on line geocoding can be inexpensive to obtain. You can obtain it from the leading supplier of geocoding databases for as little as $190.00 for 5,000 records. However, a problem to be aware of is that you will not receive the data in a format that a bank is acustomed to using. All the data must be reformatted.
IE: a geocode may be stated as CA049960679709. These numbers will need to be parsed out

Secondly, many will geocode records down to a 5 digit zip code which in most cases is not accurate enough for CRA purposes. You need to check the level of geocoding on each record.

Third anytime you do this in house you need to know something about geocoding and address formatting. You also need a good mapping program to look up those address that do not geocode. This all takes time, and IMO its still very inexpensive to outsource it and get it back in a scrubbed and useable fashion.

It is quick, inexpensive and the most accurate available anywhere as it is supplied by the big guns in the geocoding business.

The $42,000 mentioned was for everything and I have no idea how many records that includes. But easy to use software is available that does Geocoding, detailed CRA Analysis, Fair Lending Analysis, Mapping and even writes a Management Summary report of the analyis, for as low as $5,000 annually.

Take a look at the PCI tool that also handles a lot of the HMDA editing chores - we're about a $1 billion mortgage company in 10 states and the whole thing runs us $3k a year.

Hi, I am the President of QuestSoft and we sell compliance quality geocoding software that we will put up record for record against anything.

Our prices are $295 per year for a state, $1,150 for a region and $2,995 for up to 100,000 records anywhere in the US. We integrate directly into 24 loan origination software products with the Instant Geocoder product (about 7 times the number that anybody else integrates into) and process millions of records per year.

We have 1,300 banks, credit unions and mortgage companies using our products making us the second largest provider of geocoding to the banking industy. We cross reference cities with zip codes and use the same base data sources as companies that charge those outrageous prices I saw listed. You would have to be a top 10 lender for me to even consider charging the $42,000 someone said they pay. Our system will process between 2-4,000 records per minute, is updated quarterly and is available in Windows and XML versions.

We can have you set up within 15-20 minutes today with a geocoding product. Our web site is www.questsoft.com

Sincerely,

Leonard Ryan
QuestSoft
800-575-4632 x211

A very high level of software and services would start with off-the-shelf products such as offered by Questsoft, then enhance the presentation or analysis with services from CRA Help (Don Narup), Geo Data Vision (Len Suzio), or Bankers Compliance Group.

A very high level of software and services would start with off-the-shelf products such as offered by Questsoft, then enhance the presentation or analysis with services from CRA Help (Don Narup), Geo Data Vision (Len Suzio), or Bankers Compliance Group.

Be aware that some systems have "hidden costs" for support or user training.

We do consulting for a number of banks and I've seen quite a few software packages. In my opinion, the one of the best values out there is QuestSoft's product. It is high quality (and I believe they offer backup geocoding for records that don't automatically geocode for no extra charge) and it is very inexpensive. (I don't get paid any commission and I don't own any stock in the company!) I am certain there are other good value products available that I have not seen yet too. The best advice is to shop around and ask current customers of software and geocoding vendors.

Are we the only ones doing it ourselves by using either FFIEC's website or Fact Finder from the Census? We have about 1000 HmDA entries each year and a good number of them are rural properties. Would it be more cost effective for us to use a product like QuestSoft?

To give a direct answer, I will need to make a few assumptions.

Assuming your applicants are mostly in one state, QuestSoft's geocoding would cost $295, which is roughly 30¢ per record.

If you look up one geocode in 3 minutes, that's 20 sets of data per hour. If you value your time at $6/hr or higher, objective analysis suggests that you buy a geocoding software license.

I guess that proves that compliance is a grundge job. You shouldn't have to quibble over $300 to help you do your job.

As long as we are advertising prices you can outsource and obtain the same geocoding of 1,000 records for $100.00. Your addresses can be anywhere in the US without any additional charge.

Actually Its not a price war. My prices have not changed in sometime. What this all goes to show is that there are reliable companies that provide quality services at very reasonable prices. It shows that there is absolutely no need to be paying exhorbinate prices for any CRA/Fair Lending requirement.

The difference is us smaller guys just don't spend thousands on advertising, or a national sales staff that only adds to the cost of a product. THERE ARE ALTERNATIVES that are perfectly acceptable. I know Questsoft and CRA Information Services have been around for years and enjoy a loyal following of compliance officers who keep coming back year after year because they like what we do, and not because they are contractually liable to use our products.

Just a word on the costs. The question was on the price of Geocoding software. Many of us buy a large package of software that includes geocoding and mapping software as well as data analysis programs. The larger we are, (the more users) the higher our costs. That $42M bank could have multiple users in multiple states, which would add to the costs substantially. But the costs are probably offset by the value the programs bring.

$10M gets me analysis, marketing data, mapping, geocoding, etc. I could yank out the geocoder alone and my figure would probably be around a couple thousand, but I would never let go of the balance of the program so that is irrelevant.

My aren't Don and Leonard chummy.

Dawnie is right. We use the same program and I like the way the geocoder works. However, we also pay for the ability to run all the OCC reports, other types of analysis, maps and a number of other functions.

Actually Yes we are. we do compete but that doesn't mean we do not communicate. Leonard and I have known each other for 11 years.

Again I think its a good thing for the banking industry that there are alternatives. Especially for the not so technically inclined or have deep pockets. If you are happy with what you have great. Please remember that there are other institutions that do not have the budgets some do. There is more than one product on the market that does geocoding, CRA/FairLending Analysis, provides demographic information, makes AA and loan disbursement maps with just a click, and a number of other things at reasonable prices. Thats all thats being said here and there is nothing else to read between the lines.

Quiping anon's should not be addressed Don We know you're a good guy

I just wanted to clear up the pricing issue that had risen up (since someone offered me a half price program) But it is important to point out the value in the multitute of options out there. Some banks aren't doing much analysis with their data, and in that case a stand alone geocoder is great. Some don't spend much time reading the analysis anyhoo, and again, there are better options than what I use for those folks as well. In fact, paying for a low cost geocoder, and saving the balance of the bucks to pay for someone like Don or Leonard or whoever to assist with analysis is a great way to use the money wisely.

I think the number of users and features of the software are critical to your decision and the price. You could do virtually any job with no paid-for resources, especially with the help of the net. But that isn't feasible in todays multi-tasking environment where so many things have to be done quickly and efficiently. This comes at a price.

I used CRA Wiz. I had a good price, enjoyed the flexibility of the program and the training and support that came with it. Other companies may have also done a good job with these issues, so don't take my comments out of context. I am just saying that different banks may want different things. Will you use this data for marketing, branch expansion analysis, fair lending analysis, map generation and what is the learning curve/how user friendly is it? There are many differences you may or may not care about.

Try several, see what you like, dislike and what your budget can afford.