PERFORMANCE MEASUREMENT AND BENCHMARKING FOR IN-STORE BANK BRANCHES

摘要

Banks are becoming more and more cost conscious as profit margins, non-interest fees, and spread revenues decrease. To contain costs, they follow a new trend to operate smaller full service retail bank branches located within grocery stores. In this study, we measure and benchmark the relative efficiency of in-store bank branches for a national bank in Southern Colorado. Using data envelopment analysis, we identify inefficient branches and suggest managerial insights for those inefficient branches. Finally, we discuss contributions and limitations of this study.