The 3rd ISPRS Workshop on Dynamic and Multi-Dimensional GIS & the 10th Annual Conference of CPGIS on Geoinformatics

Chen, Jun

Bibliographic data

Monograph

Persistent identifier:: 856566209

Author:: Chen, Jun

Title:: The 3rd ISPRS Workshop on Dynamic and Multi-Dimensional GIS & the 10th Annual Conference of CPGIS on Geoinformatics

Sub title:: May 23 - 25, 2001, Bangkok, Thailand

Scope:: VI, 434 Seiten

Year of publication:: 2001

Place of publication:: Pathumthani, Thailand

Publisher of the original:: AIT

Identifier (digital):: 856566209

Illustration:: Illustrationen, Diagramme, Karten

Language:: English

Usage licence:: Attribution 4.0 International (CC BY 4.0)

Publisher of the digital copy:: Technische Informationsbibliothek Hannover

Place of publication of the digital copy:: Hannover

Year of publication of the original:: 2016

Document type:: Monograph

Collection:: Earth sciences

Chapter

Title:: ANALYSING BRANCH BANK CLOSURES USING GIS AND THE SMART MODEL. Lihua ZHAO, Barry J. GARMER

Document type:: Monograph

Structure type:: Chapter

ISPRS, Vol.34, Part 2W2, “Dynamic and Multi-Dimensional GIS", Bangkok, May 23-25, 2001 ANALYSING BRANCH BANK CLOSURES USING GIS AND THE SMART MODEL Lihua ZHAO, Barry J. GARMER 2 School of Geography, The University of New South Wales Sydney 2052 NSW Australia 12 Tel: 0061-2-9385 5919 Fax: 0061-2-9313-7878 Email: lihua zhao@hotmail.com 1 Tel: 0061-2-9385 5583 Fax: 0061-2-9313-7878 Email: B.Garner@unsw.edu.au 2 Keywords: Branch bank closure, GIS business application, MCDM, SDSS, SMART model Abstract: Branch bank network planning requires the analysis and evaluation of alternative branch locations taking into account a number of criteria. Although these traditionally relate to financial performance indicators, the spatial reorganisation of networks implies that an increasing number of spatial variables must be included in the analysis. While GIS provide the analytical facilities to support spatial information, a multi-criteria approach is required for the evaluation of alternatives in order to arrive at rational and justifiable decisions, since branch bank closure problems involve multiple and conflicting factors. This underlines the necessity of analysing branch closures based on the integration of GIS and Multiple Criteria Evaluation models. The specific aim of this paper is the identification of branch banks that are potential candidates for closure based on the analysis of spatial and demographic variables. GIS and SMART (the Simple Multi Attribute Rating Technique) are integrated to develop a Spatial Decision Support System (SDSS) to carry out the modelling process. The visual and spatial components of the system are based on the use of the ArcView GIS software for managing, generating and integrating data, and for the production of graphic displays. The SMART model in the Criterium DecisionPlus software suite is used to generate a ranking of branch banks in order of decreasing viability. Dynamic Data Exchange (DDE) is used to loosely couple the two software packages in a Windows environment. Preliminary results of the application of the system to identify candidates for closure using the Commonwealth Bank network in the Sydney metropolitan area are presented to demonstrate the application of the GIS-based SDSS. 1. INTRODUCTION Since the 1980s, competition in the retail banking market has intensified, and recently the single branch channel system that has dominated the delivery of banking products and services in the past is increasingly being replaced by new multi-channel systems (Mois, 1999; Leyshon and Pollard, 2000). The spatial distribution of retail banking in Australia has changed dramatically in the recent past as a result of deregulation and innovations in information technology. Today virtually all retailing banks are seeking ways for reducing their costly branch banks, the identification of branches for closure can have an important influence on the overall profitability of the bank's operation. As the presence of branches in particular places can have external benefit as individuals and businesses depend on them for their personal and business banking need, the focus of management decisions is on how many and which branches should be closed or, alternatively, how many and which branches should be retained to adequately serve customers. This process, which is one of searching for the best location or pattern of locations, is generally considered to be a discrete multiple criteria location problem (Malczewski and Ogryczak, 1995). Usually, only a fixed number of alternative locations is available for consideration, the choice among which is based on a systematic evaluation of multiple criteria relating to the performance and potentials of individual branches. Multi- Criteria Decision Making (MCDM) is the formal approach that has been developed and widely used as the basis for solving such locational choice problems. Branch bank network planning requires the analysis and evaluation of alternative branch locations taking into account a number of criteria. Although these traditionally relate to financial performance indicators, the spatial reorganisation of networks implies that an increasing number of spatial variables must be included in the analysis. An alternative approach based on a consideration of demographic criteria and spatial variables can guide decision-makers in examining different alternative solutions before arriving at a decision, and help decision-makers define the problem and consider possible factors when deciding whether or not a branch should be closed. The conflict that arises between banks and their customers regarding branch closure stresses the importance for decision makers to consider these criteria (SMH, 1999; The Age, 1999a; The Age, 1999b). The fact that there is a spatial dimension to the problem means that GIS are an appropriate tool for analysis. The advantage of applying GIS in this context is that they enable links to be established and spatial relations to be explored between data derived from different sources. Moreover, the powerful GIS display functions enable the results of analysis to be presented visually in a variety of useful ways (Zhao and Garner, 2000). While GIS provide the analytical facilities to support the spatial information, a multi-criteria approach is required for the evaluation of alternatives in order to arrive at a rational and justifiable decision since branch bank closure problems involve multiple and conflicting factors. This underlines the necessity of analysing branch closures based on the integration of GIS and MCDM models. The specific aim of this paper is the identification of branch banks that are potential candidates for closure based on the analysis of spatial and demographic variables. GIS and SMART (the Simple Multi Attribute Rating Technique) are integrated to develop a Spatial Decision Support System (SDSS) to carry out the modelling process. Preliminary results of the application of the system to identify candidates for closure using the Commonwealth Bank network in the Sydney metropolitan area are presented to demonstrate the application of the GIS-based SDSS. 2. SPATIAL DECISION SUPPORT SYSTEMS SDSS are based on the integration of GIS functionalities with decision-making models to create what have been called “intelligent GIS” (Birkin et. al., 1996). The definition and history of the development of SDSS have been described in the literature (see Armstrong et al., 1986; Densham and Rushton 1988; Densham, 1991). The goal of a SDSS is to provide an interactive visual tool to help decision-makers understand the spatial component of both the problem and the solution, as well as the interrelationships between these. Such systems are capable of handling a wide variety of ill-defined or semi- structured business problems in a user-friendly environment. Clarke and Clarke (1995) have reviewed some successful business applications of SDSS and documented a number of key issues that SDSS have successfully addressed, such as, adequately meeting market needs, helping predict what might

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