Halmi Zainol

Determination of New Bank Branch Location Using GIS Approach

In business, location of the premise plays an important role in ensuring the success of the business. It is important in terms of the business marketing and profit. The location of the competitors also should be taken into account. With the growing needs for computer-based system, geographic information system (GIS) can be utilized to determine the suitable location for business purpose including new bank branch location. This paper has summarized the method to carry out the research to determine the best location to place a new branch for Bank X, particularly in Shah Alam, Selangor. The process can be divided into three stages; planning, implementation, and decision stage. The planning stage was focused on the data methods and analysis to be used in this research. For the implementation stage, geospatial database was created and all required data for decision stage were prepared. In the decision stage, the location of new branch of Bank X was investigated based on the suggested criteria from the bank itself and location of other banks. Spatial modeling and Euclidean distance methods were used to obtain the desired decision. The results showed four suitable locations for new bank branch of Bank X; location near Stadium Shah Alam, location at Pusat Perniagaan Worldwide, location opposite Sek. Keb. Seksyen 7, and location behind SRJK Tamil Seksyen 7. Ranking technique was used in order to get the most suitable location from those four locations and the most recommended location was the location opposite to Sek. Keb. Seksyen 7. For the conclusion, GIS technology is a useful and powerful tool in planning and decision-making purpose.