Optimal Coverage Analysis of Existing Automated Teller Machines within Minna Metropolis, Nigeria using the Best-Fit Model

Abstract

Owing to the fact that nearly all economic sector of a country has embraced technology in their mode of operation. The banking industry as a financial institution in its recent implementation of electronic banking and the use of Automated Teller Machine has not been left out. The location of this ATM's with respect to their users is a geospatial problem; the industry aim is to ensure that such facilities are optimally located. The location-allocation tools in Geographic Information System thus become useful. This study investigates and assesses the existing ATMs in the study area using location and service ability as a factor. Questionnaires were administered to assess the service ability of existing ATMs. For location evaluation the geographic coordinates of ATMs and Police stations were acquired using Garmin 78 Handheld Global Positioning System, the remotely sensed image of the study area was gotten from the Office of Surveyor General of the Federation, it was digitized and used along with the acquired coordinates to create a database using ArcGIS 10.3 software. The resulting map was used to create a network analysis. Various Location-Allocation models were then used to assess and fix new optimal locations for ATMs in the study area. The results show that with a travel distance of 1.5km used in the models, the maximum coverage model is the most suitable location-allocation models, for a banking system that seeks for equity among various banks, ATM centers can be sited using this model. The marginalization that occurs from other model make them unfit for the banking industry. One of the final results from this study is that the optimal area for locating new ATMs amongst potential sites in terms of compatibility with the chosen criteria was achieved. This study suggests that; decision making future siting of ATMs to serve customers within this distance zone could use this model.