Bank Branches Efficiency: The Caixa de Crédito Agrícola Mútuo da Região de Bragança e Alto Douro Example, Using Data Envelopment Analysis

Abstract

This study analyzes the performance and comparative efficiency between the Caixa de Credito Agricola Mutuo da Regiao de Braganca e Alto Douro bank branches, credit cooperative that integrates "Credito Agricola Mutuo Integrated System" (SICAM). With the use of Data Envelopment Analysis (DEA), we perform a bidimensional approach, evaluating the efficiency in a transactional perspetive and also for their capacity to generate results. Considering the increasing role that the automated service channels are taking in the costumer’s relationship, the transactional perspetive has been subdivided into presential and not presential. This study, based on a specific analysis for each efficiency dimensions, in the overall institution and each branches that make up your network, allowed us to gauge the institution performance in production and profitability perspetives. Face to the agency heterogeneity size checked, have been applied constant returns to scale and variable returns to scale approaches, verifying higher scores when considering the effect of each agency production scale. To consider also the future application possibilities for this methodology, by introducing qualitative variables that relate the metrics now achieved with the service quality provided to internal and external customers and demographic variable of the action areas.