American Express wants to bring more of its technologies and services to the small-business market to expand its base beyond those companies that use only its payment cards.
Small and midsize businesses represent an important segment for Amex, accounting for 21% of its total global loan mix and 34% of its total global card member receivables in the first quarter ending March 31, 2021. Steve Squeri, Amex’s chairman and CEO, said in the New York company’s earnings call that growth in its commercial business has been and will continue to be driven primarily by small and medium-size enterprises.
“A key element of our longer-term growth strategy is to deepen our relationships with current SME customers and attract new clients by offering a range of supplier payment and cash flow management solutions, both on and beyond the card, giving business owners more tools to help them manage their businesses,” Squeri said.
Amex isn’t alone in this effort, but it counts on its bank charter to make the process more seamless.