Models of retail performance for bank branches: predicting the level of key business drivers

Abstract

Details the process whereby multivariate interdisciplinary measures of potential to perform are integrated with performance measures to develop models of retail performance for bank branches. The predictive models use the key business drivers of a major trading bank as dependent variables. Independent variables explaining business drivers are the theorized potential variables that measure the capacity to generate retail business. The models allow a comparison between the predicted and actual levels of key business diverts, thus measuring unrealized performance. Findings can assist decision making during restructuring, branch closures or downsizing. The variables presented should be regarded as examples rather than universally accepted measures of branch performance.