Research Of Site Selection For Branch Of BOC Qingdao

In recent years, with the continuous development of the financial industry, thecompetition among the state-owned commercial banks, joint-stock banks, citycommercial banks, foreign banks and other financial institutions is becomingincreasingly fierce. More and more banks focus on product and service innovation, atthe same time, they put lots of money and energy into Channel Construction. Forcommercial banks, achieving the two-way flow of financial products and customerfeedbacks by constructing convenient service channels is an important way toconsolidate the customer base, improve network performance, and enhancecompetitiveness and influence of financial industry. The Channel Construction mainlyincludes three parts, namely, the physical channel, the self-service channel and theelectronic channel. As the physical channel is a vital place for banks to providefinancial services and sell financial products, the importance of physical channels isself-evident. Therefore, exploring the intrinsic relationship between the site selectionand performance improvement of bank branches according to the business positioningand development goals of banks, and implementing market segments or buildingphysical outlets by reasonable siting strategy are very necessary for banks to establishbrand images, develop business and maintain customer relationships.The optimization of the branch layout for commercial banks is to occupy afavorable position in the market competition and obtain a higher market share bytaking advantage of the limited network resources. The city’s overall constructionplanning, the shift of economic centers, and the rise and fall of the regions, may havean important impact on the performance of the branches. Therefore, a clear targetingof outlets, area segmentation of the city on the basis of urban planning, the decision ofsetting up what level of the network according to the overall environment, and thecomprehensive optimal adjustment for physical channels and self-service channels inthe district, are conductive to improve the competitiveness of banks in the district as well as the comprehensive strength in the financial markets.During the process of site selection, firstly, we need to consider the planningsituations of the whole region and clarify the overall regional planning; Secondly, weshould consider the surrounding environment and customer resources, carry outmarket demand analysis, and consider the type of outlets to be set up as well as thebusiness species to be started according to the customer resources. Furthermore, weshould consider comprehensively the location and business environment of thebanking branches to be selected, the layout situation of surrounding banks, buildingstructure as well as rent or house prices, and many other factors. On this basis, we setcertain weight and scoring criteria for the above siting selection factors by employingthe Delphi method. Through evaluating the site selection of the banking outlets andcarry out input-output analysis, we finally confirm the scientificity of siting selection.This paper researched the siting process and strategy of banking branches byemploying the above methods and ideas, and proposed the adjustment advices for thebranch layout of Bank of China in Qingdao, so as to explore the customer resources,solid customer base and improve branch competitiveness and performance throughthe optimization of the branch layout.