American Express

American Express was founded on March 18, 1850, as an express mail business in Buffalo, New York. It was created as a joint stock corporation by the merger of the companies owned by Henry Wells, William G. Fargo, and John Warren Butterfield. This new entity aimed to provide services in the rapidly growing economy of the United States, particularly focusing on express mail delivery. The expansion was swift due to the burgeoning courier and financial needs of the time, leading American Express to eventually branch out into various financial services beyond just express delivery.

In 1882, American Express expanded its product line by introducing the American Express Money Order. This was a significant move in the company’s strategy to diversify its offerings beyond its established express mail services. By launching money orders, American Express aimed to cater to the financial transaction needs of businesses and individual consumers alike, facilitating secure and reliable financial transactions across distances.

In 1891, American Express introduced the world's first travelers cheques, which provided people traveling, especially overseas, with a safer means of carrying their money. This product innovation addressed the needs of travelers who required a secure alternative to cash. The travelers cheque could be replaced if lost or stolen, making it a game-changing convenience in international travel finance.

In October 1958, American Express launched its first charge card, marking a significant evolution in the company’s business model. Unlike traditional credit cards, the charge card required users to pay their balance in full each month. The launch capitalized on a burgeoning need for personal credit and payment convenience during a post-war economic boom, rapidly gaining popularity across affluent markets. American Express Cards are now a recognized global brand synonymous with status and reliability.

In 1966, American Express further expanded its financial services by establishing a Financial Advisors division. This move marked a shift towards providing not just transactional services but also comprehensive financial advisory and planning offerings. Entering the investment management and advisory services field allowed American Express to leverage its reputation and clientele towards building a robust financial advisory business tailored to the needs of both individual and institutional investors.

In November 1981, American Express made a significant investment in the financial services sector by acquiring Shearson Loeb Rhoades, a major brokerage firm. This acquisition was part of American Express's strategy to diversify and expand into the financial brokerage industry. The purchase, valued at around $1 billion, positioned American Express as a formidable player in investment banking and financial services, integrating Shearson's vast network and resources.

In December 1998, American Express underwent a significant restructuring aimed at streamlining operations and focusing more explicitly on core financial products and services. At the time, the company was looking to divest certain non-core assets while strengthening its presence in the credit and charge card industry. This restructuring was part of a broader strategy to improve efficiency, foster innovation in financial products, and better position the company for future growth in a rapidly changing financial services landscape.

On November 10, 2008, during the financial crisis, American Express was approved to become a bank holding company, a move that allowed it greater access to funds during the credit crunch by gaining the ability to receive federal loans. This strategic transition facilitated its participation in the U.S. Treasury’s Troubled Asset Relief Program (TARP), enabling the company to stabilize by accessing emergency funds that were vital for maintaining operations amid the global financial turmoil.

On December 20, 2013, American Express completed the sale of its publishing business, which included titles such as Travel & Leisure and Food & Wine, to Time Inc. This sale was part of American Express's strategy to focus on its core business of financial services and to divest non-essential assets. The decision underscored a strategic shift towards concentrating resources on expanding their financial products and customer services, while distancing themselves from the declining print media industry.

In January 2018, American Express launched its first global brand campaign in 25 years, titled 'Powerful Backing: Don’t Do Business / Don’t Live Life Without It'. This campaign was part of a strategic brand repositioning aimed at enhancing consumer perception of its brand across markets worldwide. It highlighted American Express's commitment to supporting its customers’ business, personal, and lifestyle needs beyond just financial transactions, emphasizing security, reliability, and customer service excellence.