Bank Branch Closure Assessment Using DEA

The downward trend in the number of commercial bank offices is driven by bank's efforts to shift banking transactions from physical branch digital channels order improve efficiency. In prioritizing closure, needs define appropriate method used analysis. This case study intended identify parameter determine prioritization office closure. uses a non-parametric approach Data Envelopment Analysis (DEA) examine efficiency and productivity change at one large Indonesia. one-stage DEA was generate relative score, input-oriented Variable Return Scale (VRS) assumption adopted data analysis based on production approach. Malmquist Productivity Index also measure total factor change. result shows that closed branches 2019 2020 were actually considered efficient, with increasing productivity, compared many other inefficient branches. score can be further bank’s management evaluate upcoming closure as well overall