Competing in Banktown: TD Bank exec explains how they picked Charlotte — and what’s next
There’s some stiff competition in Charlotte’s retail banking scene — but a New-Jersey based bank is hoping to edge its way into the market.
Earlier this month, TD Bank announced its plans to open 15 branches in the area by 2025. The first two locations, on Beatties Ford Road and Carmel Road, are slated to open next summer.
It’s an aggressive brick-and-mortar expansion for a firm that didn’t previously have a retail presence in Charlotte, especially as better-known local names like Bank of America and Truist opt to shutter branches.
TD Bank entered the Carolinas market in 2010 when it acquired South Financial Group, then based in Greenville, South Carolina. It has 11 other locations in North Carolina and about 200 employees in Charlotte already, with the expansion set to add on another 100 workers.
The Charlotte Observer spoke with Hugh Allen, TD’s regional president of the mid-south, about the bank’s move here. He formerly ran the TD’s commercial lending real estate lending platform, and has been based in Charlotte since 2014.
This interview has been edited for brevity and clarity.
TD Bank in Charlotte
What led TD Bank to expand to Charlotte?
Hugh Allen: “We’ve been looking at Charlotte for quite a while. With me taking the role of a regional president here and the success we’ve had with our commercial businesses in the city, it just felt like, ‘Okay, let’s go ahead.’
It’s such an attractive market. Charlotte has tremendous growth, and the economy has diversified over time. Even though we are the second largest financial center in the United States, we have other businesses. And with the migration (of new residents) from the Northeast, where [TD Bank is] better-known… all those things kind of intersected in making the decision easy for us.
We’ve been down here in Ballantyne (through our commercial lending business) for a while, but without the store presence, a lot of people just don’t think of us being here in Charlotte. Now that’s going to change.”
Charlotte bank branch market
In its announcement of the expansion, TD stated that 25% of these new Charlotte branches will be located in majority-minority or low-to-moderate income areas. Why is that important?
Allen: “Before we selected (sites for our branches), we spoke with local leadership about it. We asked, ‘Where do you need banking? Where do you need us?’ I think it speaks volumes that one of our first stores will be on Beatties Ford Road.”
The area has previously been designated both as an “Opportunity Zone” and a “Corridor of Opportunity,” government programs aimed at bringing more business to the area and improving the quality of life for residents.
“We recognize that there’s a wealth gap,” Allen said. “I know from my history living here in Charlotte that’s been an issue here. We recognize that the attainability of affordable housing is a challenge right now… These are things that we’re going to be focused on as we expand in Charlotte, and as we expand into other markets as well.”
Competition
Charlotte has a lot of well-established banks. Bank of America alone holds about 62% of deposits in the area. How do you plan to compete?
Allen: “We’ve learned the Charlotte market through our commercial businesses… so we’ve been here, we know the market, we’re not parachuting in out of nowhere. I don’t want anyone to ever have that impression of us.
I think we’ll stand out due to our level of service, and we’ll stand out through our accessibility. We’re going to be more accessible to people on weekends. We’re trying to make sure we are available to people who work in different ways — some people can’t get into a branch between nine and five o’clock Monday through Friday. We’re looking forward to being there for those people.
We’re somewhat unique right now, because a lot of our peers and competitors are closing branches and reducing their footprint. We see value in having the brick and mortar.”
This story was originally published September 28, 2022 at 2:20 PM.
