Amex Bank makes mark as middle-man
By Timothy Sifert
In opening its first representative office in the country, American Express Bank plans to cozy up to local banks - and not consumers - to offer lucrative intermediary services, which thus far, it has provided via its international network of European offices. This strategy will not pit the bank against local financial institutions, a tactic some new market entrants are planning. Rather, it will attempt to build on its existing banking relationships, through its offer of trade finance, cash management and payment services.
"We want to be closer to the market, closer to the customer," says Thomas Switkowski, who will be the American Express representative in Warsaw, once the National Bank of Poland approves its banking license application. "We want to be a bank in Poland that's not a competitor to the local banks."
The bank has supplied the Polish financial market with a variety of services since the early 1990s. However, it only recently filed for its banking license because, based on internal benchmarks, markets and American Express' business have now matured enough to justify an office here. Switkowski declined to reveal details of the revenue and customer benchmarks used by American Express.
American Express might have opted to open an office in Poland earlier, he explains, if not for the global financial crisis in the 1990s.
But, with a finance sector whose growth is expected to exceed that of Poland's gross domestic product and a litany of formidable banking institutions to choose from, American Express Bank recently decided to go ahead with its plans.
The bank filed for approval from the NBP some four months ago, a process which, Switkowski points out, it expected to take three months. However, because of summer vacations there has been a short delay.
American Express Bank, even before it opens its office, already has relationships with seven of the country's top 10 banks, he explains. And by having personnel on the ground - who would be more effectively in tune with the market - the bank would be able to boost the number it supplies with its core products. Whereas in the past the bank has provided a wider-ranging suite of products, today it is targeting new business as a niche player. American Express believe that their trade finance, cash management and payment service products will all be of benefit to Polish banks, especially because of their global presence.
"So that's why we've come to the market," he says. "If a bank has trade within Asia, we have a strong network in Asia."
He notes that the bank would also step outside its central business, such as to take part in loan syndication, but only if the transaction enables it to further develop its core operations. Such deals, he says, would be relationship-based.
"We need the bank as a distribution channel." As such, he says, American Express Bank will not sell products directly to consumers, as that would put them in direct competition with the banks that provide them outlets for their products.
He anticipates that the office will open officially in January of next year.
