Wells Fargo and American Express Form Credit Card Partnership
Wells Fargo’s CEO is delivering on his promise to make his bank more of a player in the credit card industry.
Today, Wells Fargo and American Express announced a partnership where Wells Fargo will begin issuing new credit cards accepted on the American Express network. Wells Fargo will begin offering these cards in select U.S. markets in the third quarter of this year, with a full scale launch in the first half of 2014.
As previously reported, Wells Fargo CEO John Stumpf wants to double the bank’s credit card business. Currently, 35% of Wells Fargo customers have a credit card with the bank, an increase from 31% a year ago. Credit card loans rose 9.2% at the bank to $24.8 billion in the second quarter of this year. Wells Fargo is currently the nation’s fourth largest bank in terms of assets.
“We are delivering on our strategy to expand our credit card business,” said Stumpf in a statement. “Our goal is to offer Wells Fargo customers a suite of cards that help them meet their financial goals. We’re proud to have American Express as a partner in this effort – a great company with a proven brand for customer service.”
This is not the only tie that exists between these two financial giants. The founders of Wells Fargo, Henry Wells and William Fargo, were also two of the founders of American Express.