Out: tellers. In: free coffee. How US Bank is drawing Charlotte customers to new branch
About three years ago, U.S. Bank planned an aggressive retail expansion in Charlotte: 10 branches in two years, starting with its uptown location on Tryon Street. Then, the pandemic hit, and those plans got delayed.
Now, the Minneapolis-based bank’s expansion is moving forward again in Charlotte, with the grand opening of its fourth local branch across from SouthPark Mall Wednesday.
The bank has been expanding its branch network in Charlotte despite steep local competition. The city’s three largest banks — Bank of America, Truist and Wells Fargo — dominate the consumer banking market in the region, and smaller players have been edging their way into the market over the last several years.
The continued expansion is a natural one for U.S. Bank, said Heather Kesner, branch and small business regional executive for the East region.
The bank has had an employment base here for more than a decade, with local workers in business lines like commercial banking, mortgages and risk and compliance.
“Charlotte is a fantastic market,” she said. “There’s just a tremendous opportunity to grow small businesses and for us to grow and expand our consumer relationships.”
A look at US Bank’s new branch
U.S. Bank’s new location comes as many larger local banks are shuttering branches locally, as fewer customers frequent physical locations.
But the new SouthPark branch reflects how U.S. Bank is designing brick-and-mortar locations for the age of digital banking, said Ashley Cumberbatch, the bank’s market leader for North Carolina branch banking.
Here’s some of the ways that U.S. Bank is trying to build that into their branch layout:
Instead of teller windows, there are two “customer support stations” where bankers sit directly across from customers in an open layout. And every staff member working can help customers with all their financial needs, Cumberbatch said, not just transactions.
There’s a demonstration space where employees can plug in devices to show customers how to use digital banking tools.
The bank also has a small café where customers can pick up a complimentary soda, coffee or tea.
As digital banking makes basic requests and transactions easier, branches are used more often for face-to-face meetings Cumberbatch said, for things like discussing loan options or meeting with a wealth management advisor. The back of the branch is lined with meeting rooms to accommodate that.
At the front of the branch, there’s a community conference room which small businesses, nonprofits or other local groups can use. You don’t have to be a bank customer to use the room, Cumberbatch said, and it’s available for use even after bank hours. “We’re excited about inviting people in,” she said. “When you think about what this space allows for, for our community to be able to take advantage of it, that to us is really important.”
More expansion plans for US Bank
U.S. Bank is planning to open two more branches this summer, Kesner said, in Huntersville and the university area.
The bank is growing more than just its real estate portfolio in Charlotte. Over the last few years, the bank has increased its employment here, from about 800 workers in 2019 to 1,000 today.
That’s also a big jump from a little more than a decade ago, when the number was closer to 100. But it’s still a much smaller operation than major Charlotte banks — Wells Fargo is the largest, with 27,000 local workers.
The bank is facing steep competition in the Charlotte area.
A number of new names have opened branches here over the last several years — from JP Morgan Chase to TD Bank — and the retail bank market is still dominated by major players Bank of America, Wells Fargo and Truist.
Bank of America alone holds close to 60% of the local deposit market, according to FDIC data.
As of now, U.S. Bank only has about 0.02% of the local market. But Cumberbatch and Kesner were confident that the bank can build a strong customer base here, especially in communities that may have been previously under-served by the banking sector.
For example, Kesner said, U.S. Bank has appointed a Charlotte business access advisor, who will work with Black small business owners to provide free financial guidance. Kesner is hoping that will draw new customers to the bank, while also reflecting U.S. Bank’s commitment to the Charlotte market.
“That’s one of the ways that we’re really trying to differentiate ourselves from our competitors,” she said.
This story was originally published February 15, 2023 at 1:32 PM.
