Bank branch productivity applications: Managing bank productivity

Abstract

This is an example of how one bank used DEA to make real and substantial improvement in its branch productivity and profits, while maintaining service quality (Sherman HD (1989) Service Organization Productivity Management – Highlights Edition. The Society of Management Accountants of Canada, Hamilton). Over $6 million USD of annual expense savings not identifiable with traditional financial and operating ratio analysis were identified in this 33 branch system. This study is one of the most cited DEA banking papers as it was one of the earliest to study branches with DEA.