The corporate has loved a formidable run since CEO Stephen Squeri took over in 2018 from longtime AmEx chief Ken Chenault.
Squeri has boosted AmEx’s investments in tech and diversified into different areas like small biz lending with final 12 months’s acquisition of fintech startup Kabbage, a tech firm geared toward small companies. AmEx launched a brand new Kabbage checking account for that market final month.
“Our sturdy second-quarter outcomes present that the steps now we have taken to handle the corporate by way of the pandemic and our technique of investing to rebuild our development momentum are paying off,” Squeri mentioned within the firm’s earnings launch.
“There’s a variety of competitors. There’s a variety of fintechs. There are banks on the market,” Squeri mentioned, noting that the banks specifically are “aggressive.”
AmEx doing a greater job of reaching youthful prospects
Executives famous that AmEx has additionally achieved a greater job of reaching youthful customers.
Chief monetary officer Jeffrey Campbell mentioned in the course of the convention name that AmEx spent $1.3 billion on advertising bills (which incorporates promoting) within the second quarter. The corporate plans to spend about $5 billion complete on advertising this 12 months, Campbell mentioned.
For instance, a brand new AmEx business this 12 months exhibits a lady making an attempt on denims once more after presumably carrying sweatpants whereas working from residence for the previous few months.
“We noticed card member spending speed up from the prior quarter and exceed pre-pandemic ranges in June, with the biggest portion of this spending development coming from Millennial, Gen Z, and small enterprise prospects,” Squeri mentioned within the press launch.
Through the convention name, Squeri mentioned youthful customers are going out extra and beginning to take holidays once more, which is also giving the corporate a lift.
“Journey and leisure spending additionally accelerated within the quarter, significantly within the US, the place a rising proportion of the inhabitants is now absolutely vaccinated,” he mentioned.