Spatial Distribution of Banks and Customers’ Mobility in Ibadan North Local Government, Oyo State: GIS Approach

Abstract

The location of banks is a key consideration for customers’ physical transactions. Customers consider a number of factors such as time, distance from workplace and residence, cost and convenience, in choosing their banks. Distance to and fro point of origin to a bank for physical transaction may discourage or encourage a customer in the selection of bank to opt for. This study therefore adopted Geographic Information System to map the location of the existing banks and to determine the spatial distributional pattern of banks in the study area through Average Nearest Neighbour Analysis. Also Road Network Analysis built in ArcGIS was used to determine the service area, shortest and alternative shortest routes to each bank in the study area. Also, structured questionnaires were used to obtain the perception of bank customers towards location of bank. This study therefore revealed that banks are clustered around commercial and institutional areas while less consideration were given to residential areas. Majority of the customers spends between 100 – 150 naira on transport to access their banks for physical transaction while 39% of customers trek to their respective banks. This study therefore suggest that residential areas should be considered in siting banks and there should be several meters in - between banks to reduce the rate of bank clustering in a particular area. Also, more roads should be constructed to allow ease of movement.