American Express is pushing deeper into traditional banking territory with the launch of its first checking account, leveraging technology developed by small business lender Kabbage.
American Exopress acquired Kabbage in August last year as part of a strategy to roll out a range of cash flows services to businesses.
Kabbage Checking, is a no-fee digital account that pays 1.1% interest on up to $100,000 in balances. It includes mobile check deposits, a debit card, bill pay and targeted savings features as well as access to a network of ATMs and retail locations for cash transactions.
Small business owners can apply online for an account in minutes, regardless of their business’s age or revenue.
“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, SVP of strategy and business operations at Kabbage. “Kabbage Checking is 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, free ATM access, and a compelling APY to directly support our customers’ growth.”
The latest move follows AmEx's use of Kabbage's underwriting software to begin offering credit lines of $1,000 to $150,000 to businesses.