Bernardo Melendez

 Analyzing Change in Bank Branch Networks in the Toronto CMA ©2015

This study identifies spatial patterns associated with the openings and closures of bank branches in the Toronto Census Metropolitan Area (CMA) from 2008 to 2015 and relates them to some of the key contemporary trends in the financial services industry. It is hypothesized that Canada’s Big Five banks must have felt some pressure to restructure their operations in the aftermath of the 2008 crisis and as a result of recent technological innovations. This study fills a research gap because few academic studies have addressed this topic in recent years and not enough studies on this topic have been conducted for the Toronto region. The primary objective is to evaluate the importance of spatial factors (such as demographic variables, retail activity, and the presence of competition) in affecting the spatial patterns of bank branches in modern times. This is accomplished by creating a regression model to explain bank branch counts in 2008 and 2015 within each of the municipalities in the study area and by measuring the trade area statistics of selected branches. The results from this study provide evidence that location is still relevant to a bank’s operations despite technological innovations and economic downturn. In other words, the branch is not dead yet.