Credit Card Comparison Blog

From Credit Card Giant to Financial Institution

From Credit Card Giant to Financial Institution

The Federal Reserve just approved American Express’s request to become a bank. The company doesn’t plan on slowing down when it comes to credit cards, it simply plans on offering more services to its customer base.

This has already been a good move for American Express. It now has the ability to increase its deposits. The Chief Executive Officer, Kenneth Chenault, said, “We will continue to build a larger deposit base to broaden our funding sources.” American Express will be able to offer extended services to its already pleased customers.

American Express has been rated the highest when it comes to customer satisfaction for several years in a row. In the past, customers could really only rate AMEX for it’s customer service, credit card interest rates, and other credit card services. Now, customers will be given the opportunity to switch their financial assets over to the American Express Bank.

Millions of customers have been extremely satisfied with American Express. Why wouldn’t they switch the rest of their financial assets to the company that has already proven to be an industry leader?

Since mid-September, there have been three major credit card companies that have switched over to being a bank. Although much of the reasoning behind this is to be protected by the Federal Government, these companies are choosing to do the right thing for the customer and the company as a whole. Yes, the government will be able to stand behind American Express. But, more importantly, American Express has gone from being an incremental player in customers’ lives to a monumental player.

It makes it so much easier to have the majority of your financial assets in one place. Wouldn’t you agree? Don’t you think it is more convenient to have your checking, savings, money market accounts, credit cards, etc all in one place. American Express has discovered the secret to happy customers. Now, it can have even happier customers because all of their accounts can be in one place. These customers can find themselves in a more financially-sound position as American Express moves from being just a credit card giant to being a financial institution as well.