Kabbage (small business lending platform, assets)
2020
$850M
Why
American Express acquired significant assets of Kabbage, a small business lending and financial services platform, in late 2020 following Kabbage's financial difficulties during the COVID-19 pandemic. The acquisition was a strategic accelerant for American Express's ambition to expand from pure card products into a comprehensive small business financial services platform, adding cash flow management tools, line of credit products, and data analytics capabilities that would deepen the American Express relationship with the approximately 3 to 4 million small business card members in its existing portfolio.
Impact
The Kabbage acquisition gave American Express a tested small business lending platform, a substantial small business customer database, and a team with deep expertise in alternative underwriting models for small businesses — capabilities that American Express could not have built from scratch within a comparable timeframe. The integration of Kabbage's cash flow insights and lending products with American Express's existing small business card products created a more comprehensive financial management offering than either company could have provided independently.
Outcome
American Express integrated Kabbage's technology and capabilities into its business banking platform, launching American Express Business Blueprint — a digital cash flow management and lending tool — that has become a growing component of the company's small business financial services strategy. The acquisition has been cited by management as a meaningful accelerant to the company's SMB financial services ambitions and is expected to contribute growing revenue as the lending portfolio matures.