Taking advantage of this alternative is possible thanks to the reduction of costs in satellite monitoring or the use of remote sensors currently used by earth and climate scientists. The climate crisis is reason enough for the financial sector to use this technology in making financial decisions.
Integrating geospatial analysis is a common practice in the insurance or retail industry; however, the opportunity for its application in other sectors is enormous due to the trend of financial digitization. Here are five short-term benefits for financial institutions and governments in Latin America to seriously consider adopting these technologies.
In first place, geospatial technology enables bottom-up investment analysis. That is, information can be obtained at the asset level, for example, an infrastructure work. This allows to carry out a more precise evaluation of risks, opportunities and physical impacts of the asset that can be added to the financial analysis of the sector or an investment portfolio.
Second, it is possible to take advantage of the generation of databases in a scalable and global way due to advances in data processing and artificial intelligence, which implies an improvement in the quality of local information integrated into regional or global systems.
Third, the new generation of financial analysis will focus on climate and environmental assessment. Currently, models to face natural disasters or improve trade logistics can be used for the analysis of physical climatic risks or impacts against biodiversity.