News Coverage:
Woodforest uses Wal-Mart connection to expand
Friday, 09 April 2010 00:00
By Doug LeDuc
Woodforest National Bank has expanded its Fort Wayne presence by opening its second and third branches in Wal-Mart stores operating in the city.
The bank owned by Woodlands, Texas-based Woodforest Financial Group has operated a branch in the Wal-Mart at 10105 Lima Road since it opened in May 2008.
Troy, Mich.-based Flagstar Bancorp opened the door for Woodforest's expansion here when it closed branches at the Apple Glen and Coldwater Crossing Wal-Mart locations last year as part of a reorganization that also included the closure of one branch in Fishers and eight branches in Michigan.
Wal-Mart works with a number of banks in Indiana, and was "somewhat concerned when Flagstar left about a couple of openings we had, and Woodforest stepped up and was interested," said John Wolf, manager for Wal-Mart's northeast market.
Late in February, Woodforest opened a branch in the Wal-Mart at 1710 Apple Glen Blvd., and on April 5, it had a soft opening in the Wal-Mart at 5311 Coldwater Road, with plans for an April 10 grand opening to be celebrated with coffee and cake.
"It's a win-win for everyone involved," Wolf said. "The customers have the opportunity to do their banking while they're shopping, if they need to . instead of having to take a separate trip to the bank."
The branches are among 47 Woodforest National Bank operates in Indiana and 745 it has nationwide, said Rhonda Hicks, a vice president responsible for branch expansion who works with a construction team the bank has in Sherman, Texas.
"So far this year, we have only had two that have opened in Indiana," she said. "We had three in the state of Indiana last year. A majority of our growth was in 2008. These are just opportunities since we entered the state."
Woodforest entered Indiana based on a relationship it had established with the world's largest retail chain, and operates branches of different sizes, depending on the amount of space available in a store, Hicks said.
Building permits show the branches in the Apple Glen and Coldwater Crossing shopping centers each have three employees, and each involved remodeling about 700 square feet of space.
Neither of the branches has a drive-through lane. Both have automated teller machines that operate in the stores around-the-clock, Hicks said.
"It's full banking services - anything you would be able to do in a traditional branch facility you can do in these locations as well - checking accounts, savings accounts, lending, CDs (certificates of deposit). They also provide Western Union money transfers," she said.
Hicks said the branches see shoppers in the store as their target market, but Wolf said many of the retailer's employees also are glad to have bank branches in the store.
"Some of our associates . may not have had a bank account in the past, and when those services are offered at the store, it's an easy opportunity for them to get the information they need to open an account," he said.
They appreciate the convenience. "I've had individuals come up to me and thank me for that very purpose," Wolf said. "Maybe they needed a notary or needed to talk to someone about an IRA (individual retirement account) and these banks offer these services.
"We've had a couple of individuals who have said they are very friendly and their services - I do not know the exact fees involved - but it sounds like they are very competitive."
The Wal-Mart at Southgate Plaza does not have a branch, he said, because until very recently space for one had not been available there. A nail salon recently closed at the Southgate location, "so there is potential, but I don't know if that space is sufficient," Wolf said.
Old National Bancorp operates two of its northeast Indiana branches in Wal-Mart stores on Maysville Road in Fort Wayne and on North Street in Kendallville.
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