PROBLEMS OF COMMERCIAL BANK ATM NETWORK FORMATION

Abstract

The problem of building an automatic teller machine (ATM) network of a commercial bank consists of both identifying analytical indicators of its efficiency, and developing its construction model. The paper describes the ATM network performance indicators and specifies the prime costs. Qualitative indicators showing the bank’s image growth through an extensive ATM network available are described. Methods of determining certain parameter values and processing operations to calculate integral indicator values which reflect the positive and negative characteristics of a particular place are presented. The construction of a mathematical model of multi-objective optimization of a commercial bank ATM network formation is described, which model determines both the optimum amount of ATMs and their optimum distribution by particular places taking into account the estimated budget. To determine the most efficient allocation of ATMs, the multiobjective optimization model is built by applying the principles of goal programming. Goal programming mechanisms allow non-rigid accounting of the budget limits; the second criterion ensures minimization of the deviation. The model version described in the paper allows distribution of ATMs over all regions under consideration. Thus, the author’s model contributes to efficient preparation and adjustment of a commercial bank’s plan to develop an ATM network and provides an opportunity to determine the optimal number of ATMs and their best allocation in places of interest with account for an expected budget.