A decision model for bank branch site selection: Define branch success and do not deviate. (December 2019)

• Record Type: Journal Article
• Authors: Cabello, Julia García
• Is Part Of: Socio-economic planning sciences. Number 68(2019)
• Publication Date: 2019-12
• Subjects: Bank branch site selection -- Imitate branch success -- Feature vector; C61 -- C63 -- G17 -- G21; Planning -- Periodicals; Economic policy -- Periodicals; Social policy -- Periodicals; Planification -- Périodiques; Politique économique -- Périodiques; Politique sociale -- Périodiques; ECONOMIC PLANNING; SOCIAL PLANNING; DECISION-MAKING; 361
• DOI: 10.1016/j.seps.2017.09.004
• Languages: English
• ISSNs: 0038-0121

Abstract

Abstract: Site selection is one of the most important decision making processes for firms since, if done correctly, it provides access to the best customers and the greatest market potential. In contrast, poor location choices are costly and difficult to reverse. This paper deals with the single branch site selection problem in the banking context. Due to the high level of complexity (several factors have to be taken into consideration in the decision making process as well as a wide range of entities' internal requirements), to date there is no single procedure that fits all needs. This paper attempts to provide a solution to this problem by proposing a unified method based on minimizing the distance from the candidate-branch to the most successful branches, taking into account each banking institution' notion of branch success. This methodology would work well at the lowest possible cost. Highlights: This paper deals with the single branch site selection problem in the banking context. To date there is no single procedure that fits all needs. This paper provides a unified approach based on each bank' notion of success. It may be implemented at low cost. This decision-making model may also apply to other contexts.