AmEx and Kabbage Create A Checking Account for Small Businesses
Less than a year after it acquired small-business lender Kabbage, credit card company American Express launched Kabbage Checking™, a checking account for small-business owners. It doesn’t require any monthly fees and offers significant interest rates on deposits that can effortlessly rival some of the best savings account deals available.
The new checking account comes with no monthly maintenance or ATM fees to its existing customers. Users can also make deposits into it at more than 90,000 retail locations or through the Kabbage app. Those who hold a Kabbage Checking™ account will also earn 1.10% APY on their deposits, capped at $100,000, without having to open a savings account.
Kabbage Checking™ is just one of the three financial solutions that resulted from AmEx acquiring Kabbage in October 2020 and purchasing its full suite of fintech products, data platform, and internet protocol. The senior VP and general manager of global business financing at American Express, Gina Taylor Cotter, said at the time that its technology could help widen American Express’s footprint in the small-business market. It is clear now that this purchase was a win-win move for both parties.
Apart from pushing out a new rival to the already existing and excellent checking accounts for small businesses, Kabagge and American Express’s partnership brought Kabbage Funding™, Kabbage Payments™, and Kabbage Insights™. Kabbage Funding™ simplifies applying for a line of credit ranging from $1,000 to $150,000 that customers can use to fund their business expenses.
Kabbage Payments™ is an option that allows its users to accept debit or credit card payments, although it is temporarily not allowing new sign-ups. Kabbage Insights™ is a solution that provides business owners with an overview of their finances and enables them to make better-informed decisions.
The acquisition and rollout of Kabbage Checking™ is yet another step for American Express toward expanding the portfolio of its products aimed at the small-business market segment. In 2010, the company launched its Small Business Saturday initiative to motivate consumers to spend more at local businesses, especially the day after Black Friday.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
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