American Express Company has named a new chief executive officer who is set to take over after Kenneth Chenault. However, the task before him is not an easy one as the company is currently on a rough patch. The withdrawal of customers like Christopher Burch from the fold has dented the enterprise. Considering that Burch listed on Forbes among the wealthiest people in America, losing such a client to a rival company calls for the adoption of new strategies. The reality on the ground is much more complicated as AmEx is facing stiff competition from other card companies and banks. As a result, there is a wind of uncertainty blowing among investors. The most significant question being the source of long-term revenue and how it will deal with old payments methods that stand to get disrupted by the new mobile approach.
AmEx primary source of revenue is issuing cards to businesses and consumers. The portfolio includes credit cards and monthly paid-for cards. Besides running its card network, the card company gives loans to people and institutions. Events leading to Burch shift was AmEx’s inability to get him tables at some of New York City high-end restaurants. Burch’s advisor suggested a new card service provider. Since then, Mr. Burch uses Sapphire Reserve card. In two years, AmEx total share in the U.S credit-card purchase volume market fell by 4.1 percent. Most of the losses are attributable to the exit of co-branded cards, Costco Wholesale Corp and JetBlue Corp. Mr. Chenault defended his tenure highlighting the challenges through which he had to drive the company. He said that the institution was affected by 9/11 and the financial crisis.
In 2014, Mr. Chenault recognized that AmEx was disadvantaged in lending when faced with a big lender. It was later outbid by Citigroup Inc. in the Costo credit card deal. Information released showed that they were outbid by an estimated $1 billion. With the current trend, the new CEO needs to take drastic measures if they are to boost revenues. Perhaps, luring millennials and keeping the rich will work. Additional article on architecturaldigest.com.
For over 40 years, Christopher Burch has invested in a wide range of industries. Perhaps, sending advice to young entrepreneurs. Burch is the founder of Burch Creative Capital. He runs the company under the capacity of CEO. As a budding entrepreneur, Burch started with a joint venture with his brother, Bob. Together, they invested $2000 and launched Eagles Eye apparel. The company grew to $ 165 million after which they sold it to Swire Group.
Read his shared views on business, hit this.
Burch diverse investment portfolio comprises of investments in the real estate industry, luxury homes, and the technology industry. Click on inc.com to read about his latest cool offering to the market.
Today, most of his efforts go towards start-up companies. Additionally, he takes pride in participating in several philanthropic activities. For his new and follow on investment, click this link on prnewswire.com.
Have a glimpse to one of his impressive investment on http://www.businessinsider.com/chris-burch-nihi-best-hotel-in-the-world-2017-7