Published 2014 | Version v1
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Evaluation of Bank Branch Efficiency Using Data Envelopment Analysis (DEA) Software

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This study analyzes the efficiency of 50 branches using Data Envelopment Analysis (DEA) software. To ensure a more precise evaluation, the branches were categorized into five groups based on the similarity of their customer numbers. The analysis was conducted using three input variables—equipment, personnel, and operating costs—and two output variables—revenue and network indicators (number of non-face-to-face transactions).

The DEA results indicate that the main factors contributing to higher efficiency among the most efficient branches are the high volume of non-face-to-face (electronic) transactions and, consequently, the reduction of operational costs. Therefore, to enhance the efficiency of underperforming branches and transform them into efficient units, it is necessary to increase non-face-to-face transactions and maintain control over operating expenses to prevent efficiency loss. The strong correlation observed between electronic transactions and branch efficiency highlights the critical role of digital banking in improving operational performance. 

This is the English translated version of the original publication (2014) in Market Engineering Development Journal, No. 92.

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Shemirani, H., & Esmaeili, Z. (2014). Evaluation of bank branch efficiency using data envelopment analysis (DEA) software. Market Engineering Development Journal, (92).pdf

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