Strategical level assessment of bank offices location using analytical hierarchy process method

A strategic outlet/office location is essential in the business growth of a bank. This location determination includes the expected aspects of security, comfort, and convenience in transactions between the bank and the customer. Therefore we need a suitable method for determining the strategic location of the bank. This study aimed to determine the strategic level of the existing eight outlets/offices of Bank Syariah Indonesia in Jember Regency by considering the six predetermined criteria. This study uses the Analytical Hierarchy Process method to analyze stratified variables by considering the inconsistency tolerance limits of various criteria and determining alternatives. All important variables were given a numerical rating on the Saaty scale by respondents who were experts in their fields. Each variable will be compared with other variables to obtain a weight value, which determines the highest priority to the lowest for each variable. The results show that by using the Analytical Hierarchy Process method, the percentage of influence used is obtained from the distance between outlet and market, the distance between outlet and the center of government, the distance between outlet and the industrial area, the number of the Muslim residents, the number of residents over 40 years old, and the distance between outlet and security office at 25.4%, 10.7%, 11.1%, 24.8%, 16.3%, 11.6% respectively. Based on the calculation results of the ranking value, the lowest alternative is BSI KC JEMBER A. YANI with a value of 0.052, and the highest alternative is BSI KCP JEMBER BALUNG with a value of 0.196. This value indicates the strategic level of the outlet/office by considering the weight of the 6 (six) criteria above. This strategic level is expected to be used as decision support for the bank in improving services to customers and prospective customers.