Advanced techniques for optimizing banking branch networks in the digital age
Posted: Jun 13, 2021
Abstract
The banking industry is undergoing a profound transformation driven by digitalization, changing customer preferences, and evolving competitive dynamics. Traditional branch optimization models, which primarily focused on geographic coverage, transaction volumes, and operational costs, are increasingly inadequate for addressing the complex challenges facing modern financial institutions. The rise of digital banking channels has fundamentally altered the role of physical branches, transforming them from transaction centers to relationship hubs and advisory centers. This paradigm shift necessitates novel approaches to branch network optimization that account for the intricate interplay between digital and physical channels while maintaining operational efficiency and customer satisfaction. This research addresses these challenges through the development of a comprehensive optimization framework that combines quantum-inspired computing with traditional operations research techniques. Our approach represents a significant departure from conventional methods by incorporating dynamic customer migration patterns, multi-channel interaction effects, and adaptive branch typologies. The framework enables financial institutions to make data-driven decisions about branch consolidation, transformation, and network redesign while optimizing both operational efficiency and customer experience.
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