CSR or Real Innovation

Yesterday Dan Schulman, Group President of Enterprise Growth at American Express opened SOCAP’s third day in San Francisco by talking about the company’s work to address the issues of financial inclusion for the underserved.  

 Globally 2.5 billion are excluded from traditional financial systems. One third don’t have access to bank accounts resulting in precious time and money wasted to seek out facilities simply to access cash from their own hard earned paychecks. With 2-4% taken as a service fee in addition to interest and other fees, the figure that the underserved pay was $89 billion in the U.S. alone last year.

Since the market’s collapse in 2008, financial platforms incorporating both technology and addressing inherent lifestyle challenges have been a burgeoning industry for entrepreneurs.   Backed by the Omidyar Network, Mango now has a presence in 6 countries that empowers underbanked adults by offering a complete set of online and offline services that are convenient, low-cost support lifestyle decisions that affect financial decisions.

Given the market opportunit ,the question is whether American Express’s launch this summer of the documentary “Spent: Looking for Change” produced by Davis Guggenheim and the announcement of American Express’s Financial Innovation Lab, are just CSR window-dressing or indeed reflective of a deep brand pivot within the company. For American Express, a brand that has long stood for exclusivity, this type of shift to inclusivity would be significant. But there are reasons to believe, despite the absence of a non-binding legal framework that requires both social and financial value to shareholders, that this indeed is a deep company-wide pivot.

The primary reason is that the Great Recession showed us that the status quo of our financial eco-system was essentially destroying the customer base.   The second is that the hallmark of a great brand is demonstrating a leadership position in driving marketplace change. And the third is that American Express was founded some 160 years ago as a freight-forwarding business. Hardly a brand for the high-minded but certainly demonstrative of a company that knows how to read the market and succeed.

Great brands will pave the way for sustainable business-based solutions to our growing social challenges and there is every reason to believe that American Express has been gearing up to lead real marketplace change.

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2 responses to “CSR or Real Innovation

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  2. Hi Catherine. There’s lots of great articles out there on the topic. Keep googling some of the tags and I’m sure you’ll find something. Alternatively I’m happy to write an article for you on a related topic if you need. Ping me at kellipeterson@mac.com if interested.

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