Abstract
In this study, the bank branch network optimization problem is considered. The problem consists in choosing several branches for closure based on the overall expected level of dissatisfaction of bank customers with the location of remaining branches. This problem is considered as a black-box optimization problem. We propose a new algorithm for determining dissatisfaction of customers, based on their geospatial profiles. Namely, the following geospatial metrics are used for this purpose: Loyalty and Diversity. Also, a method for comparison of algorithms aimed at solving the mentioned problem is proposed. In this method, data on really dissatisfied customers is employed. Using the method, the proposed algorithm was compared with its competitor on a data set from one of the largest regional banks in Russia. It turned out, that the new algorithm usually shows better accuracy.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Aksoy, S., Haralick, R.M.: Feature normalization and likelihood-based similarity measures for image retrieval. Pattern Recogn. Lett. 22(5), 563–582 (2001). https://doi.org/10.1016/S0167-8655(00)00112-4
Haenlein, M., Kaplan, A.M., Beeser, A.J.: A model to determine customer lifetime value in a retail banking context. Eur. Manag. J. 25(3), 221–234 (2007). https://doi.org/10.1016/j.emj.2007.01.004
de Montjoye, Y.A., Radaelli, L., Singh, V.K., Pentland, A.: Unique in the shopping mall: on the reidentifiability of credit card metadata. Science 347(6221), 536–539 (2015). https://doi.org/10.1126/science.1256297
Morrison, P.S., Whitsed, R.: Bank branch closures in New Zealand: the application of a spatial interaction model. Appl. Geogr. 21(4), 301–330 (2001). https://doi.org/10.1016/S0143-6228(01)00014-5
Schneider, S., Seifert, F., Sunyaev, A.: Market potential analysis and branch network planning: application in a german retail bank. HICSS 2014, 1122–1131 (2014). https://doi.org/10.1109/HICSS.2014.145
Singh, V.K., Bozkaya, B., Pentland, A.: Money walks: implicit mobility behavior and financial well-being. PLoS ONE 10(8), 1–17 (2015). https://doi.org/10.1371/journal.pone.0136628
Wang, Q., Batta, R., Bhadury, J., Rump, C.M.: Budget constrained location problem with opening and closing of facilities. Comput. Oper. Res. 30(13), 2047–2069 (2003). https://doi.org/10.1016/S0305-0548(02)00123-5
Zaikin, O., Derevitskii, I., Bochenina, K., Holyst, J.: Optimizing spatial accessibility of company branches network with constraints. In: Rodrigues, J.M.F., Cardoso, P.J.S., Monteiro, J., Lam, R., Krzhizhanovskaya, V.V., Lees, M.H., Dongarra, J.J., Sloot, P.M.A. (eds.) ICCS 2019. LNCS, vol. 11537, pp. 332–345. Springer, Cham (2019). https://doi.org/10.1007/978-3-030-22741-8_24
Acknowledgments
This research is financially supported by the Russian Science Foundation, Agreement 17-71-30029 with co-financing of Bank Saint Petersburg.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this paper
Cite this paper
Zaikin, O., Petukhov, A., Bochenina, K. (2019). Bank Branch Network Optimization Based on Customers Geospatial Profiles. In: Panetto, H., Debruyne, C., Hepp, M., Lewis, D., Ardagna, C., Meersman, R. (eds) On the Move to Meaningful Internet Systems: OTM 2019 Conferences. OTM 2019. Lecture Notes in Computer Science(), vol 11877. Springer, Cham. https://doi.org/10.1007/978-3-030-33246-4_13
Download citation
DOI: https://doi.org/10.1007/978-3-030-33246-4_13
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-33245-7
Online ISBN: 978-3-030-33246-4
eBook Packages: Computer ScienceComputer Science (R0)