American express : American express American Express Company (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company headquartered in New York City.
The company is best known for its credit card, charge card, and traveler's cheque businesses. Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the highest of any card issuer.
American Express as the 22nd most valuable brand in the world, estimating the brand to be worth US$14.97 billion. Fortune listed Amex as one of the top 30 Most Admired Companies in the World.
The company's mascot, adopted in 1958, is a Roman gladiator. whose image appears on the company's travelers' cheques and credit cards. American express : American express Type Public (NYSE: AXP)
Industry Banking , Financial services
Founded by Henry Wells, William Fargo,John Warren Butterfield
Headquarters New York City, New York, United States
Area served Worldwide
Key people Kenneth Chenault(Chairman & CEO)
Products Financial ,Travel services, Insurance
Revenue ▲ US$26.7 Billion (FY 2009) Net income ▲ US$2.13Billion (FY 2009)
Total assets ▼ US$124 Billion (FY 2009)
Total equity ▲ US$14.4 Billion (FY 2009)
Employees 67,701 (2008) American express : American express Mission: To be the most respected brand in the world.
Vision: To win the hearts, minds, and wallets of our customers by providing extraordinary customer service. values : values Customer Commitment We develop relationships that make a positive difference in our
Quality We provide outstanding products and unsurpassed service that,
together, deliver premium value to our customers.
Integrity We uphold the highest standards of integrity in all of our actions.
Teamwork We work together, across boundaries, to meet the needs of our
customers and to help the company win.
Respect for People We value our people, encourage their development and reward their
Good Citizenship We are good citizens in the communities in which we live and work.
A Will to Win We exhibit a strong will to win in the marketplace and in every aspect
of our business.
Personal Accountability We are personally accountable for delivering on our commitments Business model : Business model Typical credit card business model
When a consumer makes a purchase using a credit or charge card, a small portion of the price is paid as a fee (known as the merchant discount), with the merchant keeping the remainder. There are typically three parties who split this fee amongst themselves:
Acquiring bank: The bank which processes credit card transactions for a merchant, including crediting the merchant's account for the net value charged to a credit card.
Issuing bank: the bank which issues the consumer's credit card. This is the bank a consumer is responsible for repaying after making a credit card purchase. The issuer's share of the merchant discount is known as the interchange fee.
Network: the link between acquiring banks and issuing banks. These banks have relationships with a network, rather than with each other, for fulfilling card purchases. For e.g. card issued by a community bank in Peru to be used at a shop in Sri Lanka, for instance, without requiring the banks to have a direct relationship with each other. The two largest networks in the world are Visa and MasterCard. How “amex “ is different : How “amex “ is different American Express typically plays the role of all three parties above, keeping the entire merchant discount. In recent years Amex has begun authorizing other banks to either acquire or issue on Amex's behalf, primarily in countries where Amex would otherwise have little or no presence.
Amex ‘s "spend-centric strategy", card spending and fees are responsible for 70% of Amex's card profit, vs. 10-40% for other issuers. Amex also tends to make more money from annual fees than other issuers do.
Due to its focus on affluent customers, Amex has historically had lower levels of credit losses than other issuers. The gap has almost disappeared for Q3'08 to Q1'09, however, as card issuers of all types experienced heightened credit losses. products : products American Express is best known for its iconic Green, Gold, and Platinum charge cards, and offers credit cards of similar color levels in most countries.
Centurion Card, often referred to as the "black card," catering to an even more affluent and elite customer segment.
Express Pay, that requires a card to simply be waved in front of a special reader and not swiped.
Plum Card , card line for small business owners.
American Express Red With each card member purchase the company contributes to good causes through The Global Fund to Fight AIDS, Tuberculosis and Malaria to help African women and children suffering from HIV/AIDS, malaria, and other diseases
American Express introduced the ZYNC charge card. White in color, this card was created for people in their 20s and 30s. The card is currently in open beta testing and anyone can apply for it. Corporate responsibility : Corporate responsibility American Express supports hundreds of non-profit organizations each year through its foundation and corporate giving activities.like
American Red Cross Disaster Relief Fund for disaster relief, service to the armed forces, blood and tissue services, and health and safety services.:
Employee-Driven Philanthropy for feeding the hungry, mentoring students, building homes, cleaning up the environment or making personal financial contributions,
Partners in Preservation contribution for preservation of historic sites and monuments.
Travel With Your Mind : which aims to reestablish schools as the focal part of the community.