Redundancy Identification and Optimization Scheme of Branches for Sustainable Operation of Commercial Banks

With the rapid development of the internet, the number of offline customers in the bank branches decreases, and the existing layout of branches leads to the increase of operation cost, which has an impact on the sustainable operation of commercial banks. Adjusting and optimizing the layout of the physical branches of commercial banks can not only reduce the operation cost of banks and avoid the waste of resources, but is also crucial to the sustainable operation of commercial banks. First, an evaluation index system (deposit; loan; number of vouchers; maintenance, establishment, and modification of customer information; number of counter transactions) is constructed to reflect the operation performance of bank branches. Second, the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) is used to rank the bank branches. Then, a combination of factor analysis and assignment method is used to identify redundant bank branches. Last, cluster analysis is used to find alternative schemes of redundant bank branches. Finally, Shaanxi Rural Credit Cooperatives Union in Hanzhong, Shaanxi Province, China is selected for empirical analysis. The results show that: four redundant bank branches are identified, and alternative combination schemes of the redundant bank branches are determined. The redundancy identification method in this paper is helpful for commercial banks to allocate various resources rationally and reduce operation cost, so as to ensure the sustainable operation of commercial banks.