American Express unveils new hybrid work model; debuts checking account

American Express has unveiled a new hybrid work model for its employees, that will allow them to permanently work remotely up to two days a week.

An internal memo sent out by the company’s chairman and CEO Stephen Squeri said that the US and the UK will be the first to adopt a new hybrid model starting on 13 September 2021.

It said that the first three weeks will be a ‘transition period’, during which most of its US and UK employees “will work from in the office for two days a week and work virtually the other three days.”

The new hybrid model will be fully adopted from the week starting from 4 October 2021. However, the implementation will be subject to regional conditions, Covid-19 related guidelines and vaccination rate among other factors.

Employees who ‘worked 100% virtually prior to the pandemic will continue to work virtually’ and ‘who cannot perform their jobs effectively from home will be required to come into the office every day.’

In a separate development, American Express announced the launch of its first business checking account, dubbed Kabbage checking.

Kabbage checking is a digital account, which has no monthly maintenance fees and no set-up fees.

It also offers an annual percentage yield of 1.1% on balances up to $100,000.

Kabbage senior VP of strategy and business operations Gina Taylor Cotter said: “Kabbage Checking is built to give small businesses the flexibility of mobile banking—from in-app account management to mobile check deposits—with the convenience of a traditional bank—including in-person cash deposits, free ATM access, and a compelling APY to directly support our customers’ growth.”

American Express had acquired Kabbage in 2020 as part of its strategy to offer a wider range of payment, cash flow and financial management tools to small businesses.