American Express 1998 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 1998 American Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 63

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63

13
part by introducing existing Cardmembers to
some of our other card products, including
upgrades from the Personal Card to the American
Express Gold Card or the Rewards Plus Gold
Card, and to the Platinum Card.
We added Return Protection to the American
Express Gold and Platinum Cards. This service
allows Cardmembers to return purchases to us
for up to 90 days, even when a store will not
accept them.
We increased usage of lending products such
as Sign & Travel and the Special Purchase
Account. These programs allow Cardmembers
to extend payment on selected purchases.
We selectively expanded the size of credit lines
and encouraged Cardmembers to transfer out-
standing balances from other card issuers to our
products. As a result, we increased lending
balances at double-digit rates and continued
to capture a greater share of the credit card
lending market.
acquisitions. Spending billed on our cards soft-
ened in some markets during the year although
billed business increased overall. This is not an
excuse for our performance, but clearly we were
affected by generally more negative conditions.
U.S. CONSUMER CARD SERVICES
In its fortieth year in the United States, the
American Express Card continues to be the stan-
dard bearer for our brand. Financial results were
strong and business billed on the card increased
for the year. We attribute a portion of this growth
to innovative marketing initiatives that helped fuel
Cardmember spending. In addition to spurring
card usage, these programs help enhance the
brand and reinforce the notion of using the card
for everyday purchases at grocery stores, gas sta-
tions and major retailers.
Deepening relationships with core Card-
members was a goal for the year, and we focused
efforts on gaining a greater share of the plastic
spending of our customers. We made progress in
We are forming new partnerships with banks
and other financial institutions to issue cards
on our network. We established 16 new network
arrangements in 1998, launching cards with Generale Bank
in Belgium, Banco Popular in Puerto Rico, AMP Banking in
Australia and Komercni Banka in the Czech Republic,
among others.