New banking trends, MCDA and financial decisions: Insights and a framework for retail banking


Since most decision making involves multiple criteria, extensive research has been developed in this area over the past few decades. However, as it is widely known in the decision-making field, there are significant differences in the way that the decision-making process has been addressed. This has lead to two different approaches: Multiple Criteria Decision Making (MCDM) and Multiple Criteria Decision Analysis (or Aid) (MCDA). Having the most recent world economic and financial trends as a background, this paper aims to highlight the relationship between MCDA and financial decisions in a banking context. The paper is based on previous work of well-known authors in the financial decisionmaking field, but highlights new findings and presents a multicriteria framework for retail banking in order to increase the interest of the MCDA approach for banking issues. In particular, the framework offers a holistic view of banking activities at a bank branch level, where at least eight different phases, when correctly integrated and performed, provide banks with a greater capacity to support decisions and to adapt strategies to a permanent changing environment. The paper discusses insights, advantages and disadvantages of MCDA to provide recommendations for successful applications of this approach in similar contexts.

Publication Title

Banks and Bank Systems

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