Defining bank branch trade areas for optimal distribution networks in mergers and acquisitions
Fecha
2025-01-14Estado
info:eu-repo/semantics/publishedVersionMetadatos
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. Purpose
This study introduces a methodology that combines geographic information technologies and consumer behaviour principles to define, delineate and quantify the trade area (TA) of a bank branch within the context of mergers and acquisitions (M&A). The goal is to design an optimal distribution network tailored to the needs of financial institutions involved in M&A activities.
Design/methodology/approach
The paper presents a procedure for TA delimitation, grounded in a theoretical model supported by marketing and consumer behaviour theories, focusing on proximity, purchase frequency and product type.
Findings
Addressing a gap in the literature, this study highlights TA delineation as a key element in marketing strategy, exploring its role in establishing optimal distribution networks, particularly for financial institutions engaged in M&A.
Research limitations/implications
For simplicity, the study focuses on a single bank branch, rather than a broader dataset.
Practical implications
The proposed methodology enables more accurate delineation of TAs in M&A processes, mitigating the negative effects often overlooked by banks during mergers and acquisitions.
Social implications
This approach helps reduce the risk of financial exclusion for vulnerable clients, promoting social and economic equity and fostering a fairer, more cohesive society.
Originality/value
This study is innovative in integrating geographic information science (GIS) metrics into location science, proposing fragmentation analysis to quantify the spatial structure and configuration of TAs. This approach departs from traditional practices, as these specific metrics have not been collectively applied in previous research.
Defining bank branch trade areas for optimal distribution networks in mergers and acquisitions
Tipo de Actividad
Artículos en revistasISSN
0307-4358Materias/ categorías / ODS
Empresa, economía y sostenibilidad (E-SOST)Palabras Clave
.Banking, Mergers & Aquisitions, Bank Branch, GIS