American Express Co (AmEx) is planning to set up its online and mail banking business with a source of at least $10 billion of deposit funding, reported Reuters citing AmEx’s chief financial officer, Dan Henry.
As of September 30, the firm had about $120.4 billion of assets and $23.9 billion of deposits. American Express usually collects deposits via brokers, however, it now aims to increasingly collect deposits directly from customers.
The bank, which AmEx decided to start in December, has already started assembling deposits. Mr Henry said at the Reuters Global Finance Summit in New York that the firm expects to reach the $10 billion mark in less than four years.
Reportedly, AmEx became a bank holding company in last year and subsequently got $3.4 billion under Troubled Asset Relief Program. It paid back the funds in June this year and purchased government warrants in July.
