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Building Financial Wellness at American Express with Smart Saving

Financial Literacy Leadership Conference

October, 2012 AMERICAN EXPRESS COMPANY PROFILEAmerican Express is a global service company, providing customers with access to products, insights and experiences that enrich lives and build business success:Fortune 100 Company$30 billion in annual Revenue (2011) Celebrating 162nd year in businessHeadquarters in New York City; more than 62,000 employees around the worldAmerican Express is one of the worlds leading issuers of general purpose credit and charge cardsOver $822 billion in billed business (2011)Businesses include charge, credit card and payment products for consumers, small businesses and corporations, network services, corporate/consumer travel, and merchant servicesAmerican Express has one of the worlds strongest brands:Currently ranked 16th in FORTUNES Americas Most Admired Companies Ranked #1 by J.D. Power and Associates in customer satisfaction among credit card issuers for the 6th consecutive yearConsistently ranked as top employer in recognition of workplace programsOne of the 2011 Worlds Most Ethical Companies

2SMART SAVING LOGO & TENETS3Brand for financial wellness, companion to Healthy Living, our brand for physical wellness

BACKGROUND AND GOALS4Process StepProcess StepDeclining RSP*/401(k) participation from mid-80%to 70% in Q3 2009Feedback from our employees and vendors highlights anunfulfilled needUtilization of servicesbelow expectationIssuesEmployee EngagementSmart Saving FairsSeminars and webinarsLaunch Smart Saving on The SquareQ&A Tables on-site1:1 financial & retirement planning meetingsEmployee AppreciationEasy access to resourcesAddress employee irritantsPromote existing programsPromote Usage10% increase in RSP participationIncrease utilization (e.g., financial planning and legal service plan)Integrate Healthy Living/Smart Saving/Work Life messagingGoal to Increase Awareness andUsage of Financial Benefits* RSP is the Retirement Savings Plan, the Company 401(k) plan5Process StepProcess StepOFF TO A GREAT START

Q3 2010Q4 20102011Launch4,934 visits to new Smart Saving page2,517 employees took Smart Saving Check-In 38% increase in calls to financial planning service

5 + 5 Campaign0% savers: 334 enrolled (7% of audience)1% 4% savers: 428 increased RSP (8.5% of audience)4,225 hits to 5 plus 5 page on The SquareTargeted e-mail0% savers: 245 enrolled (9.5% of audience)1% 4% savers: 388 increased RSP deferral rate (12.5% of audience)

EnhancementsSpecial Enrollment for life insurance, LTD & legal assistance planRoth 401(k) effective October 2011Reduce wait for Company Matching Contributions effective January 2012Self-Directed Brokerage Account provider change-October 2011Innovation!Smart Saving for Kids Hong Kong Mexico U.S.Events18 events in Phoenix, Salt Lake City, Greensboro, Fort Lauderdale/Miami, Atlanta, Jacksonville, St. Petersburg and NY reached close to 8,400 employees2,000+ signed up for 1:1 financial planning session400 enrolled in RSP or increased contributionsMany more participated in follow-up education sessionsOnsite visits for Q&A and 1:1 Ayco sessionsAdd Power CampaignEncouraged employees to take the 1% challenge and direct 1% more of pay to the RSP or personal savings. 1,032 have increased RSP deferral rate.6Process StepProcess Step2012Q1 2012Q2 2012Q3 & Q4 20121% ChallengeEncourage employees to save 1% anywhere for anything, vacation, car, house, emergency fund, retirement, etc.Teach Children to Save DaySpecial savings banks distributed with four slots for saving: Save, Spend, Invest and ShareHelpful hints posted to Smart Saving pages on The SquareEventsParents@amex Lunch n Learn programLGBT seminar and webinar How to Raise a Financially Savvy Child

Quarterly WebinarsRetirement-How to Get There, Roth-Is it Right for You, InvestmentsManaging Your Money, Four Ways to Plan Smart, Pre-Retirement PlanningSmart Saving Virtual FairDevelop virtual Smart Saving Fair Launch in October 20124K Virtual employeesShare Your Smart Saving StoryOver 200 employees shared their Smart Saving Story

CampaignsBeneficiary CampaignOne Retirement FundButton Campaigns on The Square

Barbara, need help choosingyour Retirement Fund? American Express Retirement Savings PlanIn honor of America Saves Week,take action to improve your future!

results

7Note: results include Smart Saving Fair promotion as well as individual program promotions

Locations that hosted Smart Saving Fairs showed larger increases in program utilizationRetirement: 401(k) participation increased 8%Plan participation increased from 70% in Q3 2009 to 78% in Q2 2012Those deferring 5% or more increased from 72% to 80% for the same periodLocations that hosted Smart Saving Fairs increased participation from1% to 17% for the same periodAverage deferral rate is 7.3%, up from 7.2% in 2010

Day-to-Day ExpensesCalls to the financial planning service increased by 12% from Q4 2009 to Q1 2012Deals and Discounts (increased utilization of entertainment, cell phone and other discount programs)

Protection & PlanningSpecial Enrollment for Supplemental Life insurance, LTD and legal assistance plan1,260 employees elected supplemental life insurance coverage560 employees signed up for the Will Preparation Service (provided at no additional cost to those enrolled in Supplemental Life) 350 employees signed up for the legal assistance plan

Family & Kids5,800 employees utilized back-up child care program1,500 employees enrolled in a secondary education resource program (education counseling for employee or employees children)275 employees utilized back-up elder care program

WELCOME TO THE VIRTUAL SMART SAVING FAIR!

SMART SAVING GLOBAL OVERVIEW9MarketHong KongMexicoUSLaunch timeJuly 2011Oct 2011August 2010BrandBuilding upon the Smart Saving brand in the US, launches in Hong Kong and introducing Smart Saving in Mexico 2012 expansion to the UK and Canada and potential other marketsWidening the Benefits brands target audienceOverall aimHelp employees understand money conceptsDevelop good money management habitsIdentify and provide tools and resources for employeesCommunicationsSmart Saving marketing promotionsPresence on The Square (company intranet)

MetricsProgram participation rateProgram participation rate

Attendance at launch events401(k) Plan participation Utilization rates of other programsParticipant survey resultsHits to The SquareTargeted communication metrics

Program developed in U.S. and expanded and adapted to local markets

SMART SAVING GLOBAL OVERVIEW 201210MarketUKCanadaSingaporeLaunch timeJuly 2012Oct 2012August 2012BrandBuilding upon the Smart Saving brand in the US, Hong Kong and Mexico 2012 expansion to the UK, Canada and SingaporeWidening the Benefits brands target audienceOverall aimHelp employees understand money conceptsDevelop good money management habitsIdentify and provide tools and resources for employeesCommunicationsSmart Saving marketing promotionsPresence on The Square (company intranet)/adapted for each local market

MetricsProgram participation rateDiscount Program utilizationProgram participation rateDiscount Program utilization

Attendance at launch eventProgram participation rateDiscount Program utilization

Program developed in U.S. and expanded and adapted to local markets

SMART SAVING KIDS GLOBAL OVERVIEW11

MarketHong KongMexicoUSLaunch timeAug / Sep 2011Oct 2011Nov 2011BrandBuilding upon the Smart Saving brand in the US and Hong Kong and introducing Smart Saving in Mexico Widening the Benefits brands target audienceOverall aimHelp kids understand money conceptsDevelop good money management habitsFacilitate dialogues and co-learning on money management between kids and parents CommunicationsSmart Saving ToolkitsSmart Saving Kids GuidebookPresence on The SquareAge group6 to 14 6 to 127 to 18MetricsProgram participation rate% of participants completing the 4-month money management development program% improvement on money management (if available)Program participation rateSavings amount after 3 months

Program participation rateParticipant survey resultsHits to The SquareFollow up responses/resultsNumber of toolkits distributed

Program developed collaboratively and delivered locally

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EventsNewsletterIntranetBlog

INTEGRATED BENEFITS STRATEGY

Contact InformationBarbara KontjeDirector, Global Retirement & Smart SavingAmerican Express Company212-640-0288Barbara.a.kontje@aexp.com