Market potential analysis and branch network planning: Application in a German retail bank

Abstract

Location problems are an integral part of strategic planning in many kinds of industries. Optimizing an organization's branch network requires considering multiple criteria such as location characteristics, branch performance, and competitors' locations. There is a need for concepts that support decision makers in solving these complex location problems. This paper presents a process for market potential analysis and branch network planning in retail banking. The process meets industry-specific challenges, allows considering multiple criteria for decision analysis, and incorporates aspects, which are currently neglected in the literature. We implement this process within a decision support system and apply the process to the branch network of a German retail bank. © 2014 IEEE.