About American Express Bank
From its 1850 origins until its sale in 2007, the American Express Bank was a staple in the American landscape, and its impact remains a part of our history and economy. When sold, the bank provided international banking services to financial institutions and affluent customers in 72 locations across 45 countries. In its final year, the bank earned 22 corporate awards and 32 workplace awards in 14 countries.
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Beginnings
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American Express Bank evolved from a horse and buggy freight service, established in New York by John Butterfield, Henry Wells and William Fargo in 1850. Their drivers carried freight, payrolls and other valuables across a dangerous and often lawless country. By the turn of the century, the company reinvented itself, selling traveler's checks and money orders in the United States and Europe.
The Travel Business
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The American Express reputation grew across Europe, and its first international office was opened in Paris in 1895. By the turn of the century, American Express wholeheartedly embraced the travel business, conducting tours to Europe, the West Indies, the Far East and South America. By 1919, American Express was uniquely positioned to make international arrangements for travel, visas and financing and officially established the American Express Bank.
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Big Purple Bet
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In 1958, American Express Bank followed Diner's Club into the market, launching the second general-purpose charge card. It was a risky venture and became known internally as the "Big Purple Bet," as it was printed on purple paper. The American Express Card later became the crown jewel among the bank's various holding.
The 1980s
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Throughout the 1980s, American Express Bank was a fierce competitor, growing and diversifying dramatically throughout the world. It held 2,200 travel agencies and Foreign Exchange Services across 140 countries, processing $21.8 billion in travel sales. The bank also branched into publishing international travel magazines and a myriad of card services.
Final Chapter
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Ultimately, the American Express Bank became one of several subsidiaries owned by the American Express Company. Its role was to house the company's international and correspondent banking services. (Correspondent banking is for transactions between financial industries.) The bank cultivated partnerships with more than 100 financial institutions in 120 countries, issuing 78 million cards in more than 40 currencies and processing more than $561.5 billion in charges. Standard Chartered purchased the American Express Bank from the American Express Company for $823 million in 2007.
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References
- Photo Credit Creative Commons.
