Selecting Suitable Building Savings for the Client in the Czech Republic Using a Multi-criteria Evaluation Procedure

Abstract

Recently, the popularity of building savings has grown. Many people thus are faced with selecting a suitable product. Unfortunately, most clients sign a contract with the bank holding their current account and/or other products. In this simplified manner of choosing, customer’s preferences are often unnecessarily suppressed. To eliminate this, or to select the building savings most appropriate to customer’s needs, a complex user-friendly multi-criteria evaluation procedure is proposed. This approach can consider, as opposed to other well-known methods, all requirements and conditions of a building savings selection. The application power of the proposed concept is illustrated using real situations that can occur on the Czech market. Two most frequent types of client are specified (primarily oriented to a deposit return, and getting a loan). Besides “standard” situations, some more specific cases (a non-traditional savings period of nine years, or building savings for children) are also studied in order to have a greater impact of study to the practice with this product. For each savings strategy, the most suitable building savings is selected. Subsequently, the results are compared and analysed.