Professor Anup Nair Featured on WalletHub
Assistant Teaching Professor Anup Nair was recently featured in a WalletHub Expert Opinion section regarding the American bank holding company American Express. Here is some of what he said on the topic:
“How strong is the American Express brand today, relative to the past?
American Express, as a brand, has been associated with premium banking and is one of the most recognizable names in the financial services industry. Its legacy dates to the mid-19th century, since its establishment in the 1850s in New York. Through its rich history, from introducing travelers’ cheques to globalizing in key countries, their brand image has always been designed to appeal to the top of the pyramid, positioning themselves as an aspirational financial commodity. This was also largely due to the big bonuses, rewards, and loyalty programs that used to give its consumers exclusive benefits.
The industry has changed drastically in the 20th century, with many competitive brands not only entering the foray but also taking the game to a different level. Gone are the days when financial systems (like Amex) could charge a hefty merchant fee to recover the money that they used to offer as discounts to consumers. Many comparable brands offer similar services. The key differentiator is that Amex seems to have upped their game in the premium sector and instead of focusing on serving the middle to entry-level users, they have doubled down on the HNI (high net individuals) target segment. Hence, their premium card still has a staggering annual charge with services that will appeal mostly to the affluent class.
I do believe that relative to the past, the brand might still resonate with premium and luxury positioning, but the consumers seem to be weighing their options before accepting it at face value. Due to the increased influence of social media opinion leaders, even HNI individuals are now aware of the points system and want to game the loyalty programs. Brands like Chase with their trifecta cards are giving them strong competition and challenging the Amex brand in the middle to high-income segment. The Amex brand might still hold a good position among high-income groups due to the services offered.”
To read the full piece, see the link below.
