| Summary: | Banks occasionally employ frontier efficiency analyses to objectively identify best practices within their organizations. Amongst the frontier efficiency analyses identified in the literature, Data Envelopment Analysis (DEA) was found to be one of the leading approaches. DEA has been successfully applied in many bank branch performance evaluations using traditional intermediation, profitability and production approaches. However, there has been little focus on assessing the growth potential of individual branches.
This research presents six models that examine four perspectives of branch growth. Each model was applied to the branch network of one of Canada’s top five banks to gauge the growth potential of individual branches and to provide tailored improvement recommendations. Using various analysis methodologies, the results of each model were examined and their functionality assessed. Based on these findings, three models were deemed to produce significant results, while the remaining three failed to attain viable results.
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