Economic Analysis: Theory and Practice

Assessing the efficiency of bank sales office

Vol. 17, Iss. 9, SEPTEMBER 2018

Received: 9 July 2018

Received in revised form: 18 July 2018

Accepted: 27 July 2018

Available online: 28 September 2018


JEL Classification: С21, E50

Pages: 1696–1709

Dolzhenko R.A. Ural State University of Economics, Yekaterinburg, Russian Federation

Importance The article investigates the key factors and performance indicators of retail customer service office.
Objectives The study focuses on methodological approaches to assessing the operational efficiency of bank sales office through the analysis of existing approaches to performance evaluation and experience of a number of commercial banks of the Russian Federation in similar evaluation.
Methods I employ abstract-logical, structural and functional methods as the main methods of research. The paper applies results of works by foreign and Russian scientists studying the effective organization of operations of bank offices. Approaches to calculating the indicators were tested in a number of financial institutions of the Russian Federation.
Results I present methods to evaluate bank's office performance that rest on NPV calculation and discounted payback period (DPP) determination. The paper includes a detailed structure of procedures and calculation formulas. The methods are of particular value for financial institutions that plan to organize a network of offices. They need to understand what sales offices are efficient, and what are not.
Conclusions The created tool can be used by any financial organization, if tailored according to the specifics of bank's product line. It enables to evaluate the efficiency of newly opened or operating offices.

Keywords: efficiency, bank, NPV, DPP, headcount ratio


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ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

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Vol. 17, Iss. 9
September 2018