Wednesday, July 28, 2021
What inspired the idea for Kabbage Checking?
Our mission is to solve cash-flow management for small businesses. Opening a business checking account is one of the first actions a business owner will take after establishing their company and is core to their money management. However, most traditional business checking accounts are expensive, riddled with fees, and have too few features designed for small business owners. We saw an opportunity to build a solution designed for them, one which removed unnecessary fees, while earning 1.1 percent APY on balances up to $100,000.
What is the target market for this service and what problems does it solve?
Any eligible small business can apply for Kabbage Checking. It was built to give small businesses the flexibility of mobile banking—from in-app account management to mobile check deposits—with the convenience of a traditional bank—including in-person cash deposits at over 90,000 retailer locations and free access to in-network ATMs. Plus, automated bill pay, checks, virtual and physical debit cards, and more, Kabbage Checking is built to simplify banking. Additional information and applications for Kabbage Checking are available at www.kabbage.com/checking.
What are the chief differentiators between this and similar products and services?
Kabbage Checking reduces fees and increases yield without sacrificing features small businesses would expect from a national bank. Kabbage Checking offers one of the highest APYs in the industry with 1.10 percent on balances up to $100,000. It's designed to help SMBs grow, with no monthly maintenance fees, no set-up fees and convenient on-the-go features, all backed by American Express. We also offer Reserves, which is a unique feature that allows small businesses to create up to 5 sub-balances to set funds aside like for taxes, payroll, marketing or general savings.
How does the service complement the American Express brand and product offerings?
Kabbage Checking and Kabbage's integrated solutions are part of American Express's expansion beyond its Card business to deepen its relationships with U.S. small businesses. American Express aims to be a digital one-stop shop to help manage small businesses' cash flow, and Kabbage helps it accomplish that.
What additional plans do you have for growing and scaling Kabbage Checking?
Kabbage Checking marks the first of several new digital cash flow management solutions from American Express. We also recently launched Kabbage Funding to existing customers, which provides them access to flexible lines of credit between $1,000 and $150,000. Additional information about Kabbage Funding can be found at www.kabbage.com/funding .
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