Amex has already began taking tentative steps in the domestic banking industry but top officials said the company’s core business in the Philippines would remain in the card industry.
Amex country manager Ian Fish said the bank is investing at least $5 million on the systems upgrade and modernization of Amex Bank, formerly Omni Bank.
According to Fish, Amex had already invested on the expansion of Amex Bank’s capital base and it is repositioning its branches around Metro Manila primarily to cater and serve its cardholders.
"We’re bringing the bank up to American Express standards," Fish said. "So we are investing on our systems and technology to make this possible," he added.
Amex’s presence in the Philippines is primarily in the card business, specifically the American Express charge card, a high-end dollar-denominated card catering to both corporate and individual cardholders.
"Eventually, we will introduce peso charge cards and possibly even credit cards but that will take time," Fish said. "We are not going head to head with the main competitors in the market, but we will eventually branch out."
At present, American Express is the only charge card issuer in the market.
Fish declined to disclose the company’s client base but it was estimated that there were at least 24,000 American Express cardholders in the country. Of this number, around 4,000 were corporate cardholders.
"Unlike regular credit cards, a charge card requires payment in full," Fish said. " It’s primarily for people who make large purchases and do not want to carry cash around. It’s not really for everybody but we have a respectable client base here."
Amex recently opened its Binondo Branch, the second branch that was opened since Amex acquired Omni Bank and renamed it into American Express Bank Philippines. Amex Bank’s first branch is in Paseo de Roxas in Makati.
According to Fish, the bank would be offering personal services such as regular savings accounts, checking accounts and time deposit accounts.
He said the savings and time deposit accounts could be opened in both peso and US dollar currencies while checking accounts would be initially in the local currency.
"At this point, American Express Bank in the Philippines is currently undergoing major developments in its operational and client servicing systems and a complete makeover to bring them to international standards," Fish said.
Fish explained that the repositioning of Amex Bank depended mainly on the concentration of its cardholders. In Binondo, he said the bank was optimistic that it would be able to position itself in the Filipino-Chinese business segment.