Bank branch desertification and the design of a postal banking network

The desertification of bank branches, driven by digital transformation, has exacerbated financial exclusion among individuals less keen to adopt digital channels or those living in lower-income and less densely populated regions. In this scenario, postal operators have emerged as main competitors in providing physical and face-to-face financial services in areas without a banking presence, leveraging their capillary network of post offices. In this work, we propose a mathematical model to support postal providers in decision-making concerning the network design for consulting services. The model aims to maximize the attracted demand of customers who are financially excluded due to branch closures, by identifying the best locations among post offices where to activate consulting services and planning the availability in terms of time windows. The model has been applied to the rural areas of the Campania region in southern Italy, where bank branch closures have significantly impacted customers’ access to banking services. The results demonstrate that the model can effectively support the consulting network design process, offering an effective framework for making appropriate decisions based on preferred provision policy.