Fighting over the shrinking pie

Key Bank has, since the post-savings and loans scandle era (buying Goldome and Empire), had a strong hold of the #3 spot in local bank ranking but recently it has been knocked down to #4 due to the rapid ascent of First Niagara.

Like most big companies who start falling a bit after sitting comfortably for a while, they have began an ambitious plan to solidify themselves as #3 once more.

According to the Buffalo News:

The bank is opening six new branches locally over the next two years in its biggest expansion here in almost two decades. Key has already opened new locations, in the Wegmans Plaza on Orchard Park Road in West Seneca and in the Tops Plaza at North French and Transit roads in East Amherst.

Two more are planned for next year, at Union and Michael roads in Orchard Park and in the Tops Plaza on Grand Island Boulevard in Grand Island. The Orchard Park location is already under construction. Two more sites will be announced later. All six will be newly built and will create 45 new jobs.

This gets topped off with some landmark signage on their Fountain Plaza HQ’s

…it will put up a lighted sign on all four sides of 50 Fountain Plaza, known as KeyCenter, over the next month.

The new sign will be 5 feet high by 42 feet long and 8 inches deep, and will be lighted by long-lasting energy-efficient bulbs, the bank said. It will feature the bank’s red key logo.

This is a very ambitious attempt at company growth and market share but in a market like Buffalo-Niagara, what is the point of pursuing growth in a consistently declining region with already well established institutions?

HSBC has India and Asia. M&T has DC/Baltimore/Eastern Shore. Key has Seattle and New York City. Perhaps their long history in Cleveland makes them experts in rust belt success.

11.10.09 UPDATE: Here is the north tower at Fountain Plaza with its new signage…