Off-premise ATM Location Assessment Study Based On The Extension Analytic Hierarchy Process

With the rapid improvement of science and technology, ATM’s functionhas been more and more perfect. Combined with card, ATM can provide manykinds of services, such as query, withdrawals and transfers, chang e password,etc. Accordingly, more and more banks begin to set focus to off-premise ATMduring the expansion of depth development. In the process of ATM locationdecision, most banks select places with large flow of people and fewcompetitors as alternative locations depending on subjective experience.Because the lack of consideration of other factors, it resulted in the irrationallocation decisions and restricted banks’ long-term development. Therefore, ithas important theoretical and practical significance to establish a scientificevaluation system and choose an effective evaluation method to help locationdecisions.Through literature study and interview of bank ATM managers, this paperfinally determined four evaluation factors which are geographicalenvironment, population, costs and competition based on the locationevaluation theory. Through further broken down of each factor, an indexevaluation system which is consisted of four factors and eleven specificindicators was constructed. The evaluation method in this paper is extensionanalytic hierarchy process which introduced the concepts of extension intervalnumber and correlation functions on the basis of traditional analytic hierarchyprocess so as to make the evaluation process more scientific and reasonable.In the empirical research, this paper chose a bank’s ATM location problem inHarbin as the object of empirical research. Through comparative evaluation ofthree alternative programs, it obtained the optimal solution and then verifiedthat the evaluation model is feasible.Through research, this paper draw that it should mainly pay attention togeographical environment, population, costs and competitive factors whenevaluate the alternative locations of off-premise ATM machine. The discussionof evaluation method and empirical analysis in the paper verified that the evaluation model based on extension analytic hierarchy process is scientific toapply to off-premise ATM location evaluation. Therefore, using this methodcan help decision makers reduce the decision-making mistakes and then makea reasonable choice.