EFFICIENCY OF TRADITIONAL BANKING AGENCIES FROM THE PERSPECTIVE OF DATA ENVELOPMENT ANALYSIS
Abstract
The traditional Brazilian financial market, made up of bank branches throughout the country, has been questioning its efficiency in view of the advance of fintechs that operate without physical stores and at a lower cost. Given this, this research aims to evaluate the efficiency of bank branches from the approach of profitability. To meet the objective of the study, a network of 56 bank branches in 49 municipalities was analyzed. The data considered were number of employees and customers, total expenses, municipal GDP, number of competing agencies, contribution margin per product, tariffs and average per customer, net revenue. The Data Envelopment Analysis method was used to evaluate the efficiency of the agencies focused on product and variable returns (BCC-VRS output). The results showed that 22 branches were considered efficient and 34 not efficient, indicating a lower level of preparation to compete with the new players in the market. Finally, agencies with less than 70% efficiency were identified for spot analysis and development of improvement strategies based on the best performance among the evaluated agencies.
Keyword: Financial Market. Bank efficiency. Data envelopment analysis.
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