American Express Membership Rewards - Bradesco (Brazil) acknowledges they're in process to buy Amex Brazil

Additional updated info on

http://news.google.com/news?hl=en&ned=us&ie=UTF-8&q=american+express+bradesco&btnG=Search+News

Eventually Amex Brazil may now have a focus on their operations... American Express Co. is to leave the country after years losing market share.

Their Amex Platinum card was a joke in its benefits but for the fees at almost $500 USD/year

Look at the difference in charge volume per customer, 4.6:1 if I've done the math right:

Bradesco currently has 8,700,000 cardholders with annual billing of 13,800,000,000. Average 1,586 reais per cardholder.

American Express will add only 1,200,000 cardholders but with annual billing of 8,900,000,000. Average 7,426 reais per cardholder.

dennis

You've done the math right and that's one of the main reasons for this acquisition.

Bradesco is by far the most profitable Bank in Latin America having for decades focused their operations on lower classes.

Recently they've made efforts into Private Banking and the likes.

Amex on the other hand pride themselves in focusing but the wealthy and rich. Several years ago being an Amex card holder was immediately a symbol of status. Amex Corporate is also excellent due to their contracts stemming from their Amex US operations. Amex Corporate on its own would already be a hook for many banks.

This is why this acquisition was so important for Bradesco and they were willing to outbid other interested parties (Itau and Unibanco) Bradesco had but a few customers overlapping.

Bradesco is definitely the major winner - and Amex shoud now kiss good-bye to a market that's expanding 20%/year.

A very bad decision for Amex, result of very poor customer service year after year.

Here is an article taking a closer look at the deal.

http://biz.yahoo.com/ap/060320/brazil_bradesco_american_express.html?.v=8