American Express debuts checking account product for small US businesses
American Express has taken its first steps into the traditional banking space with the launch of a new checking account platform targeted at small US businesses.
The product, called Kabbage Checking, leverages technology acquired by AmEx’s purchase of online lender Kabbage in August last year.
Kabbage Checking is designed to help small businesses manage their cash flow, offering an annual percentage yield (APY) of 1.1% on balances up to $100,000 with no monthly maintenance fees and no set-up fees.
“Small businesses should not have to sacrifice the features they expect from a bank in order to experience the benefits of an affordable business checking account,” says Gina Taylor Cotter, senior vice president of strategy and business operations at Kabbage.
“Kabbage Checking is built to give small businesses the flexibility of mobile banking with the convenience of a traditional bank.”
The offering marks the first of several new digital cash flow management solutions from AmEx as the company looks to expand beyond its traditional card business.
The firm has also started offering Kabbage Funding to millions of existing customers with plans to make it more broadly available later this year.
Kabbage Funding offers small businesses the opportunity to apply for flexible lines of credit between $1,000 and $150,000.