Determinants of Bank Closures: Exploring the Relationship between Neighborhood Characteristics and Bank Branch Locations

TD Bank Site Selection Using a Multi-criteria Decision Approach

“…Research into site selection for retail is not uncommon, however, research into location decision-making of banks is relatively rare (see Aversa et al, 2022b). More narrowly, there is a host of site selection research that has employed Analytical Hierarchy Process (AHP) and Multicriteria Decision-Making Analysis (Akalin et al 2013;Chacón-García, J.…”

“…The banking industry in Torontoand more broadly, Canadais going through a period of transition. Not unlike the broader retail sector, shifts in consumer behaviour and new forms of interaction and patronage (i.e., online) have caused questions to be asked about the use of physical branch locations (see Aversa et al, 2022a;Aversa et al, 2022b;Galipoglu et al 2018;Schiavo and Cleave, 2022). This is particularly true for the banking industry, which Aversa et al (2022b) note is the forefront of multi-channel integration, evolving from traditional branches to increased reliance on self-serve solutions (i.e., online and mobile banking, enhanced ATM functionality).…”

“…Physical locations provide a single spot where customers can access all of these. However, there are well documented issues related to the lack of physical banking access (Aversa et al, 2022b), including increased costs and inconveniences in conducting 'normal' banking practices (i.e., withdrawing and depositing money) (see Kashian et al, 2018), as well as access to information, experience, and advice gained through in-person interactions with bank employees (see Hegerty, 2016). These barriers to access are known as financial exclusionbut for the purpose of this research set a good framework for the types of criteria that should be considered in determining optimum locations for a new branch.…”

TD Bank Site Selection Using a Multi-criteria Decision Approach

“…Research into site selection for retail is not uncommon, however, research into location decision-making of banks is relatively rare (see Aversa et al, 2022b). More narrowly, there is a host of site selection research that has employed Analytical Hierarchy Process (AHP) and Multicriteria Decision-Making Analysis (Akalin et al 2013;Chacón-García, J.…”

“…The banking industry in Torontoand more broadly, Canadais going through a period of transition. Not unlike the broader retail sector, shifts in consumer behaviour and new forms of interaction and patronage (i.e., online) have caused questions to be asked about the use of physical branch locations (see Aversa et al, 2022a;Aversa et al, 2022b;Galipoglu et al 2018;Schiavo and Cleave, 2022). This is particularly true for the banking industry, which Aversa et al (2022b) note is the forefront of multi-channel integration, evolving from traditional branches to increased reliance on self-serve solutions (i.e., online and mobile banking, enhanced ATM functionality).…”