Geographic information as decision support in credit and valuation processes

When banks assess the value of real estate to determine their risk exposure, access to up-to-date and detailed geographical information is becoming increasingly important. With the help of digital maps and geographic analysis, decision-making can be both more accurate and future-proof.

Why geographic information matters in credit decisions

Traditionally, credit assessments have been based on historical data and economic indicators. However, as climate-related risks and sustainability requirements increase, a more location-based analysis is required. Geographical information makes it possible to link the physical location of a property to risks such as:

• Flooding from rivers or torrential rain
• Erosion risk and soil movement
• High heat load in urban areas
• Proximity to protected natural areas or contaminated land

This type of information becomes key when banks and investors assess credit risk, property value and collateral.

Geographic information in practice - from map to risk classification

By combining property information, elevation data and climate models, risks can be visualized directly in digital map services. This creates a transparent basis for valuation and decision-making.

Examples of use cases:

• Property risk classification: Identify properties in flood or erosion risk zones.
• Portfolio analysis: See where concentrations of risky properties are located.
• Valuation support: Integrate climate and geographic information into valuation models to obtain more realistic future scenarios.

With this data, decisions can be made based on both economic and climate-related factors - strengthening the bank's risk control and reducing vulnerability to sudden drops in value.

From data to decision support - how Metria can help

Metria offers access to quality-assured real estate information, climate risk data and geographic analysis that can be integrated into your existing decision support. By visualizing risks on a map, you get an intuitive basis for:

• Identify assets at risk in your portfolio
• Improve risk models with climate-related variables
• Strengthen transparency in reporting under CSRD and IFRS S2

Business benefits from a data-driven perspective

Geographical information allows to move from reactive to proactive decisions. By seeing risks before they happen, banks and rating agencies can

• Avoid future credit losses
• Ensure stable property values over time
• Build trust with regulators and investors

Integrating geographic information into credit and valuation processes is therefore not just a technical improvement - it is a strategic step towards more sustainable and resilient financial flows.

At Metria, we are experts in real estate and geographic information.

If you want to know more about climate-related risks, pleasecontact us at Metria.

More information about our services and how they can be used to minimize flood damage can be found here:

Analysis and advice - Turning data into knowledge (metria.se)

Climate-related risks - Metria Climate Index Property

Metria climate analysis for real estate and housing in Sweden