Location Optimization of ATM Networks

Somnath Basu Roy Chowdhury, Biswarup Bhattacharya, Sumit Agarwal

Abstract: ATMs enable the public to perform financial transactions. Banks try to strategically position their ATMs in order to maximize transactions and revenue. In this paper, we introduce a model which provides a score to an ATM location, which serves as an indicator of its relative likelihood of transactions. In order to efficiently capture the spatially dynamic features, we utilize two concurrent prediction models: the local model which encodes the spatial variance by considering highly energetic features in a given location, and the global model which enforces the dominant trends in the entire data and serves as a feedback to the local model to prevent overfitting. The major challenge in learning the model parameters is the lack of an objective function. The model is trained using a synthetic objective function using the dominant features returned from the k-means clustering algorithm in the local model. The results obtained from the energetic features using the models are encouraging.