Carnegie Mellon University

Understanding the Impact of Changing Bank Network on Local Loan Business in Different Market Structure

This research studies the impact of changing branch networks on local loan markets. Many large banks have started reconsidering their branching strategies due to changes in technology and consumer behavior. However, closing branches could have a negative effect on the local relationship with customers, which is difficult to build through online technology. The proposed model captures the demand of the local loan market and strategic interaction, including competitive effect from other banks and online loan provider. The results will provide an insight into the banking strategy on maintaining the market power of loan business

Rebecca Lessem

Rebecca Lessem

Project Lead