Banking beyond branches in Tampa Bay

Key points:

• Tampa Bay banks are shifting growth strategies toward digital innovation, disciplined lending, and relationship-driven expansion rather than branch proliferation.

• Personalized digital tools and selective use of AI are enhancing convenience while preserving human-led commercial banking.

• Talent development, culture, and workforce retention are emerging as critical competitive advantages in a volatile rate environment.

January 2026 — As Tampa Bay’s economy continues to mature after years of rapid expansion, the region’s banks and credit unions are redefining what growth looks like in this environment. Rather than relying on branch proliferation alone, financial institutions are leaning into digital innovation, data-driven personalization, disciplined lending strategies, and deeper community engagement. In doing so, they are reshaping how banking services are delivered across one of Florida’s most dynamic metropolitan areas.

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Population growth across Florida has begun to stabilize, but demand for housing, small-business financing, and sophisticated financial services remains strong. At the same time, higher interest rates, rising insurance costs, and affordability pressures have forced both consumers and businesses to adapt. 

Against this backdrop, Tampa Bay’s banking leaders are focusing on flexibility, efficiency, and relationships — signaling a clear move toward banking beyond branches.

Expanding reach

For many institutions, growth no longer means opening dozens of new physical locations. Instead, it means extending reach through targeted market expansion and specialized services.

At USF Credit Union, expansion is being driven by both geography and product strategy.

“USF Credit Union is opening its first branch outside the Tampa Bay area, marking a major milestone with a new public-facing location in Greater Orlando,” said Richard Sellwood, senior vice president and COO, in an interview with Invest:. “This expansion reflects our commitment to ‘Better Banking for All,’ a tagline that underscores our inclusive approach.”

Growth is also coming through new lines of business. Sellwood pointed to business banking as a major strategic priority. “We’re building out a dedicated department with the right competencies, structures and processes to serve business clients effectively,” he said. “It’s a major growth opportunity for the credit union and a powerful way to fulfill our mission.”

Meanwhile, Central Bank has taken a deliberately lean approach to physical expansion, operating with a limited number of branches across its Florida and Georgia markets. Instead, the bank focuses on maintaining strong lending teams in each region and protecting credit quality.

“We operate with a limited number of branches — one in each of our markets,” President and CEO John Thompson told Invest:. “Each market has a lender or lending team. Loan demand isn’t a problem for us. The challenge is the cost of funds.”

From transactions to tailored experiences

As branch traffic declines nationwide and mobile usage continues to rise, digital platforms have become central to how institutions engage customers and members. Across Tampa Bay, banks are investing heavily in technology to deliver convenience while preserving personalized service.

At USF Credit Union, digital upgrades are directly tied to financial flexibility. “One of our most recent digital upgrades is the launch of Flex Pay, our version of buy now, pay later,” Sellwood said. “Members have two flexible options, both accessible through our digital platforms.”

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Artificial intelligence is also emerging as a long-term opportunity. “We’re especially interested in how AI can enhance member service, analyze data, and personalize offerings to create a truly exceptional experience,” he said.

Central Bank is modernizing its digital presence as well, viewing its website as a critical touchpoint. “Your website is the face of your bank,” Thompson said. “If it looks outdated or lacks energy, people assume the bank itself is outdated.”

At the same time, Thompson emphasized that technology has limits. “Commercial lending, especially larger loans, requires personal interaction,” he said. “We need to meet clients and assess credit quality directly. That’s not something we can automate.”

Operating through rate volatility and housing pressures

Interest rates and housing affordability remain defining challenges for Florida’s economy, with ripple effects across the banking sector.

“Interest rates have continued to be a major issue,” Thompson said, pointing to recent Federal Reserve decisions and uncertainty around economic data. At present, the Fed’s benchmark federal funds rate sits in a 3.50%–3.75% target range, reflecting policymakers’ cautious approach amid mixed signals on inflation and growth. He warned that affordability pressures are intensifying. “The cost of insurance, the price of homes, interest rates, and flood insurance premiums, especially for those in flood zones, have made housing increasingly unaffordable.”

Thompson stressed the importance of a functioning housing market for long-term growth. “Young people need to be able to buy homes,” he said. “We need young people in Florida, not just retirees.”

At TD Bank, leaders are helping clients navigate similar headwinds while remaining adaptable. “Clients are navigating higher interest rates, tariffs, and rising supply costs, all of which can change quickly from month to month,” said Mike Phillips, North Florida Commercial Market President. “Our priority is to stay nimble and close to our clients so we can help them adapt their plans.”

Talent and culture as a competitive advantage

Even as technology reshapes banking operations, talent remains a critical differentiator.

“We put a lot of emphasis on creating a culture where people feel supported and can clearly see a path for their careers,” Phillips said. “I’ve been with TD Bank for 18 years, and many of my colleagues have been here for a long time as well. That longevity is a direct reflection of our culture.”

TD Bank continues to invest in internships and credit training programs to develop the next generation of bankers. “Formal credit training has become less common in the industry, so we see it as a real differentiator,” Phillips said.

USF Credit Union has also prioritized workforce engagement. “For the past two years, we’ve been recognized as a top workplace by USA Today, the Tampa Bay Times, and the financial services industry, with employee engagement rates exceeding 90%,” Sellwood said. He highlighted internal development initiatives such as Business College, which brings together first-year employees across departments to build long-term connections.

Want more? Read the Invest: Tampa Bay report.