A Research Design for Exploring Retail Locations for Commercial Banks in Hong Kong

The results of a first attempt in Hong Kong to set up a systematic procedure to search for profitable retail locations for setting up branches of commercial banks are reported, using a local Chinese bank as an example. It is possible to identify customer profiles, chart trading area patterns, create a market share estimation model and calculate the profitability of possible areas for setting up a new branch in order to develop a priority list for consideration in retail branching. Undertaking such research in developing countries is quite different from that in developed countries, due to the lack of data and research facilities. Experience from this attempt should be instructive to banking practitioners working in other newly industrialised countries.