The optimum branch network in the UK for a major retail bank

by

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

A geographic information system (GIS) is software that displays data in the form of geographic maps. These maps provide an easy way for bank marketers to compare the characteristics of current and proposed markets. Since banks are often aligned geographically-branches reporting to cities, cities reporting to regions-the ability to display demographic, competitive and performance data on maps enhance the way that marketers view their market areas. GIS maps fall into two categories. Thematic maps link a data element to an underlying geographic unit, such as a census tract or a county. Point maps depict the location of items, such as a bank's checking customers, or the locations of competing institutions.

TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION7

New Branch / New ATM Location8

Branch Performance Monitoring9

Decision support for Strategic Planning9

Research Aim and objectives11

CHAPTER 2 LITERATURE REVIEW12

Barclays Bank16

Performance of Barclays bank19

Capital21

Returns22

Top-line growth22

Citizenship23

Branch networks and financial exclusion: a critical review23

The political economy of the retail financial services branch24

Modeling the retail financial services branch network26

Use of branches and new distribution channels29

The Study of Location Strategy for Bank through the Analysis of Inter-regional Financial Transaction Network31

The study of factors in establishing bank's branch strategy32

GIS33

CHAPTER 3 METHODOLOGY37

Overview of Qualitative and Quantitative Research Approaches38

Overview of the Mixed Method Research Approach39

Research Method and Design Appropriateness40

Benefits and Disadvantages of Mixed Method40

Case study41

Interviews43

Type of Case Study Used45

Research Instrument45

The Questionnaire46

Informed Consent46

Confidentiality47

Validity47

Types of Questionnaires48

Reliability48

Qualitative Data Analysis49

Quantitative Data Analysis49

Suggestion for Future Research50

Ethical concern51

CHAPTER 4 RESULTS AND FINDINGS52

Role of GIS58

GIS and spatial analysis: made for each other?59

Branch Closure Evaluation63

Targeted Marketing Campaign Enhancement63

Resource Allocation64

Market Profiling65

Merger and Acquisition Evaluation66

Customer Navigation66

Performance Management67

Enhancement to Executive Information Systems, Reports, and Presentations68

CHAPTER 5 CONCLUSION69

CHAPTER 1 INTRODUCTION

In recent years, the banking industry has been undergoing drastic changes, reflecting a number of underlying developments. Significant advancements in communication and information technology accelerated and broadened the dissemination of financial information and financial services and also increased the complexity. Another key impetus for change has been the increasing competition among a broad range of domestic and foreign institutions in providing banking and related financial services. Regulations are forcing the banks to adopt better operational strategies and upgrade their skills. All these factors are throwing more challenges to banking sector. A customer-centric business model can help address these challenges. A bank's primary function is to deliver financial services and products to the customers. Banks, today, need to be market driven and market responsive. The success of such an institution depends on its approach to data management, customer relation management. Banks manage a world of information about customers, customer profiles and so much ...