Optimal Placement of Self-Service Banking Kiosks

In this digital era, banks are shifting towards providing online services to enhance customer experience and improve operational efficiency. We consider the critical issue of optimal placement of online banking kiosks to maximize user accessibility and customer usage. These kiosks enable customers to more quickly conduct self-service transactions while reducing the bank's cost of human tellers. The optimization criteria used include factors such as age of customers in the area (with younger customers more likely to use such services), location characteristics, the value of customers in the area, customer tenure and the area's population density. We formulate the optimization problem and use Machine Learning tools to solve. We show that, by leveraging data analytics, banks can significantly enhance service offerings, improve customer satisfaction and drive operational efficiency.