Geomarketing study: Sberbank branch network optimization

October 13, 2010  |   News   |     |   0 Comment

The Center for Spatial Research (CSR) has  completed a successful completed a geomarketing evaluation project for the Sberbank Baykal Division’s branch network in one of the cities of Irkutsk Oblast in Russia.

The main goals of this project were:

  1. To evaluate the spatial distribution of Sberbank locations in the city
  2. Future optimization of the branch network
  3. To define attractive areas for the network expansion and opening of new branches

In order to meet these goals CSR resolved the following issues:

  • Assessed the geographical location of Sberbank branches in order to identify “problem” areas of the city – defined as insufficient or redundant bank locations
  • Assessed “problem” branches – branches at inconvenient locations
  • Defined the most suitable areas for the new branches
  • Evaluated three scenarios of the bank network development: optimization of the exiting network, opening of the new branch without network optimization, network optimization without opening a new branch
  • Provided Sberbank managers with geomarketing research techniques and show them how to work in ArcGIS

For solving these tasks CSR applied various data (bank indicators, bank standards and ratings, mathematic models) linked to service areas geographical units:

  • number of residents per bank teller
  • branch workload
  • buying potential of the service areas
  • public transit routes
  • ATM locations
  • ATM and bank terminal sufficiency per block
  • competitors locations

During the project implementation the methodology for defining and ranking suitable zones (zones that are most appropriate for opening of the location) was applied with good results.

As the result of this research Sberbank Baykal Division has obtained the report with recommendations on optimization of the branch network as well as thematic maps showing the most suitable sites for new locations.

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