Can Banking be this Comfortable?
Last week Toronto-Dominion (TD) Bank took over South Financial Group, based in Florida, increasing their number of state-wide branches to 165. TD is taking advantage of their financial strength following the recession to purchase weakened American banks. This new acquisition is added to 3 other Florida-based banks to they have taken over in the past year. They have targeted the Florida market because it is a deposit rich state which hosts many Canadian ‘snowbirds’ during the winter months.
Building a brand image takes time, especially for a financial institution in a post mortgage-crisis market, so TD will take a year to transition South Financial Group branches into full TD branded locations. Some aspects will however change immediately, such as expanding opening hours to 7-days a week, to fit their marketing slogan of being “America’s Most Convenient Bank”. They hope to retain long-term customers by reducing the shock created by sudden changes. This acquisition is a good (but cheap) one for an ambitious TD Bank looking to expand their portfolio while retaining their AAA rating. TD plans to hold on to much of the staff with expertise in the state who could be invaluable when seeking ‘organic’ growth of their brand.
http://www.tcpalm.com/news/2010/oct/04/td-bank-completes-acquisition-of-fourth-banking/
http://www.charlestonbusiness.com/news/34255-south-financial-group-to-merge-with-td-bank-financial-group