A Decision-making Approach for Selecting Bank Branch Location

Abstract

The best location for bank branch is crucial to the success of banking business. And the selection of proper location is the first and foremost importance decision making process in terms of multi criteria problems. The main importance for deciding where to site the bank branch are: the rate of population growth and deposits and loans, business competition, having easy access. This research paper's objective is to provide a framework which helps in decision support system in order to select the most appropriate site for a bank branch considering a case study in Bangladesh. This paper provides an ultimate framework to select the most optimal site for bank branch among five alternatives. Total population, urbanization rate, construction cost, security, entrepreneurship rate and utilities are the main criteria to select the best alternatives. An AHP (Analytical Hierarchy Process) provides the best possible model to solve this type of multi criteria decision making problems. AHP model was proposed by an American methodology to get an optimal solution to several attribute problems. To denote the practicality of the proposed model in decision support system, AHP has been applied to initiate real world location selection