The Impact of using GIS on the Selection of ATM Sites and Their Effect on Profitability
Dr. Mahmoud Al-Zyood, Assistant Professor (Finance & Money) College of Business Rabigh (COB) King Abdulaziz University, KSA, India.
Manuscript received on December 22, 2018. | Revised Manuscript received on December 29, 2018. | Manuscript published on January 05, 2018. | PP: 5-8 | Volume-7 Issue-6, January 2018. | Retrieval Number: F3096017618/2018©BEIESP
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©The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/
Abstract: This paper focuses on the factors that influence the locations of automated teller machines (ATMs) and their impact on profitability using Geographic Information System (GIS). ATM services represent relatively expensive operations for banks, who seek to meet consumer demands with optimum cost efficiency. The increasing availability of computer technologies to study and monitor user behaviors have opened many new areas for banks to streamline their operations, and one novel application is the use of GIS to determine the optimum location of ATMs to meet consumer demand and maintain market competitiveness related to strategic decisions. GIS can help banks to analyze competitors in order to maintain current market share and try to expand in the future for continuity and improve the quality of services provided. This paper undertakes a review of literature related to this topic, concluding that it is important to locate ATMs using the best strategies to achieve bank objectives in the short and long term, and that GIS can greatly assist in this by enabling banks to identify the optimum location for ATMs to meet consumer demand, achieving the strategic aim of maintaining and increasing market share and competition to attract and keep customers and increase profitability. Furthermore, it is recommended that future studies explore the incorporation of social media analytics in banking strategy relative to GIS and the placement of ATMs.
Keywords: ATM, GIS, Profitability, Location.