Branch banking networks assessment using DEA:A benchmarking analysis

This paper presents a benchmarking analysis of the branches and regional banks of a large French banking group. The analysis focuses on the operational performance. Starting from an “individual” diagnostic at the branch level, a “network” diagnostic is developed at the regional banks level. The variations of performance are discussed within each regional bank and from one regional bank to another by using a DEA (“Data Envelopment Analysis”) approach. This approach allows to develop a synthetic index called the technical inefficiency score. Results reveal that 30% of these branches are efficient. Special emphasis is placed on quantifying the productive gains at the regional banks level and on practicing intra- and inter regional banks benchmarking.