Combining Fuzzy MCDM with BSC Approach in Performance Evaluation of Iranian Private Banking Sector

The objective of this study is to construct an approach based on multiple criteria decision making (MCDM) and balanced scorecard (BSC) for evaluating performance for three nongovernmental Iranian's banks. Following the literature relating to banking performance and BSC concepts, experts and man...

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Bibliographic Details
Main Authors: Meysam Shaverdi, Mahsa Akbari, Saeed Fallah Tafti
Format: Article
Language:English
Published: Wiley 2011-01-01
Series:Advances in Fuzzy Systems
Online Access:http://dx.doi.org/10.1155/2011/148712
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Summary:The objective of this study is to construct an approach based on multiple criteria decision making (MCDM) and balanced scorecard (BSC) for evaluating performance for three nongovernmental Iranian's banks. Following the literature relating to banking performance and BSC concepts, experts and managers select 21 indexes for evaluation. Furthermore, fuzzy analytic hierarchy process (FAHP) calculated the relative weights of each chosen index in order to tolerate vagueness and ambiguity of information, and three MCDM analytical tools (TOPSIS, VIKOR, and ELECTRE) were adopted to rank the banking performance. The results indicate that a customer “𝐶” has the most significant BSC perspectives and the customer satisfaction “𝐶1” is the most major index in banking sector. This proposed fuzzy MCDM method combined with BSC approach is a comprehensive and up-to-date model that can be a useful and effective assessment tool.
ISSN:1687-7101
1687-711X