American Express is a financial holding company, also known as Amex. It owns two banks: American Express Centurion Bank and American Express Bank. It provides customers with access to products, insights, and experiences that enrich lives and build business success. Its range of product and services includes charge card or credit card, network services, merchant acquisition & processing, point-of-sale marketing & information products, other fee services (fraud prevention, design & operation of customer loyalty programs), expense management product & services, travel-related services, and stored value or prepaid products etc. These services and products are sold through various channels, including online applications, direct mail, in-house teams, third-party vendors and direct response advertising.
American Express has settled an investment arm and a tech lab to explore and support early stage start-ups and young talent with disruptive digital payment ideas. Its main focus is on commerce and payment technologies in order to expand its portfolio of solutions. It has developed various payment and authentication solutions leveraging biometrics, QR codes, and machine learning technologies.
Fintech is formed out of “finance” and “technology”. This is the use of technology in the financial services industry resulting in the introduction of new and innovative products and services, primarily through software. It involves payments, investments, advisory, insurance, big data, and financing etc. Some examples of Fintech are peer to peer or marketplace lending platforms, equity crowdfunding, and robot-advice.
According to study, “American Express: Fintech Ecosystem” some of the major companies that are currently working in the American Express: Fintech ecosystem are Discover, Bank of America, JP Morgan Chase & CO, VISA, Mastercard, US Bank, UBS, CITI, WELLS FARGO, Carlson Wagonlit travel, Lehman ABS Corporation, Hexindai Inc., GOLDEN BULL LIMITED, Elevate Credit, Inc., Dun & Bradstreet Corporation, Easterly Acquisition Corp, Consumer Portfolio Services, Inc., CABCO Series 2004-101 Trust, Blucora, Inc., Corporate Asset Backed Corp CABCO, Enova International, Inc., Discover Financial Services, Enova International, Inc., Green Dot Corporation.
Some benefits of Fintech ecosystem are user anonymousness privacy, transparency of transactions, cheaper & faster transactions, cyber-crime defense and financial inclusion etc. Some risks are involved lack of government intervention, cybercrime, data security/data protection, volatility, low consumer protection, and terrorist financing etc.
In 2017, in American Express, total cards-in-force grew by more than 2.9 million and worldwide spending on these cards increased by 5 percent to a record $1.1 trillion. As well as Card Member loans rose 12 percent, significantly outpacing the industry. During 2017, is principally engaged in businesses comprising four reportable operating segments: U.S. consumer services, international consumer & network services, global commercial services, and global merchant services.
American Express launched the American Express payment, a digital payment solution that replaces plastic cards with virtual account numbers. This innovative digital payment solution offers the convenience of traditional card payments with the added benefit of transaction-level controls, improved reconciliation, and lower fraud risk. American Express payment assigns a specific-use account number to each transaction, and users are able to set a payment amount, date range, and other transaction details.
In 2018, American Express has revealed a new strategic alliance with US-based Fintech Green Sky, giving customers access to its innovative solutions. Green Sky’s technology will give select American Express customers options to finance large purchases in a paperless environment. The multi-faceted ownership will help merchants grow their businesses and give consumers greater flexibility in financing their purchases via enhanced digital payments and financing capabilities.
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Ankur Gupta, Head Marketing & Communications