Bank Location Analysis

Identifying Most Profitable Locations for New Bank Branches

• Identifying Important Variables• Correlations of potential variables• Mapping Existing Banks• ESDA• Suitability Analysis• Trend analysis (Inverse Distance Weighted)• Combined Suitability Analysis• Further Investigation

CorrelationsPearson Correlations

Tract

Deposits# of

Banks

Per Capita Income

Total Populati

on(nh)

White % (nh) White

Aggregate

income% Black & Hispanic Density

 

Tract Deposits1 .777(**) .126(**) .073(**) .189(**) .130(**) .200(**) -.191(**) -.047(*)

# of Banks .777(**) 1 .144(**) .114(**) .243(**) .170(**) .239(**) -.253(**) -.078(**)

Percapita Income .126(**) .144(**) 1 -.127(**) .585(**) .747(**) .766(**) -.698(**) -.373(**)

Total Population.073(**) .114(**) -.127(**) 1 .340(**) -.109(**) .394(**) .088(**) .150(**)

(Nh) White .189(**) .243(**) .585(**) .340(**) 1 .835(**) .814(**) -.758(**) -.292(**)

% (nh) White.130(**) .170(**) .747(**) -.109(**) .835(**) 1 .646(**) -.893(**) -.419(**)

Agg Income .200(**) .239(**) .766(**) .394(**) .814(**) .646(**) 1 -.617(**) -.273(**)

% Black & Hispanic -.191(**) -.253(**) -.698(**) .088(**) -.758(**) -.893(**) -.617(**) 1 .389(**)

Density -.047(*) -.078(**) -.373(**) .150(**) -.292(**) -.419(**) -.273(**) .389(**) 1

** Correlation is significant at the 0.01 level (2-tailed).* Correlation is significant at the 0.05 level (2-tailed).

Further Research

• Commercial Zoning and IDW Suitability

• Business money flows

• Expansion to entire SCAG region