Performance evaluation and priority of banking services using FAHP “Case study; led by five banks operating in the city of Sari in 2016”

Abstract

Background and purpose of study: Banks and financial institutions play a crucial role in economic progress and development of the country. Considering increasing  number of banks and financial and credit institutions in the country, as well as privatization process of state –owned banks and conversion of credit unions and financial institutions to the banks, performance evaluation of these institutions has been particularly  important. The purpose of this article is to evaluate and prioritize the performance of banking services based on FAHP decision making method.

Methods: The criteria for evaluating the performance of banks in three levels (interest, dividends facilities (loans) and e-banking services) were designed for five banks (Parsian Bank, EN Bank, Melli Bank, Mellat Bank, Saderat Bank). Then, bank’s clients’ opinions and SPSS software were used to analyze the data descriptively. After that, Fuzzy AHP Solver software was used to analyze banks’ rankings.

Findings: Data were collected by distributing 100 questionnaires among customers. Criteria for deposits, loan interest (mortgage) and e-banking services were also analyzed by using FAHP method. The weight values of 0/548 and 0/311 and 0/139 were obtained respectively for the three criteria. Finally, the five banks of Parsian Bank, EN Bank, Melli Bank, Mellat Bank, Saderat Bank, with weight values of 0/12, 0/075, 0/055, 0/411 and 0/339, were prioritized respectively.

Results and conclusions: The results of the study showed that performance evaluation of Parsian Bank considering criteria of interest, loan interest (mortgage) and electronic banking services compared to other banks were high. For the customers of above mentioned banks, the interest has the priority over loan interests and e banking services. Eventually, understanding of customers’ needs as well as their satisfaction can result in development of mentioned banks among their customers and other banks and financial institutions.