Building Financial Wellness at American Express with
Smart Saving
Financial Literacy Leadership Conference
October, 2012
AMERICAN EXPRESS COMPANY PROFILE
American Express is a global service company, providing customers with access to products, insights and
experiences that enrich lives and build business success:
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Fortune 100 Company
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$30 billion in annual Revenue (2011)
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Celebrating 162nd year in business
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Headquarters in New York City; more than 62,000 employees around the world
American Express is one of the world’s leading issuers of general purpose credit and charge cards
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Over $822 billion in billed business (2011)
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Businesses include charge, credit card and payment products for consumers, small businesses and
corporations, network services, corporate/consumer travel, and merchant services
American Express has one of the world’s strongest brands:
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Currently ranked 16th in FORTUNE’S America’s Most Admired Companies
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Ranked #1 by J.D. Power and Associates in customer satisfaction among credit card issuers for the 6th
consecutive year
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Consistently ranked as “top employer” in recognition of workplace programs
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One of the 2011 World’s Most Ethical Companies
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SMART SAVING LOGO & TENETS
Brand for financial wellness, companion to Healthy Living, our brand for physical wellness
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BACKGROUND AND GOALS
Issues
Goal to Increase Awareness and
Usage of Financial Benefits
Declining RSP*/401(k) participation
from mid-80%
to 70% in Q3 2009
Employee Engagement
■ Smart Saving “Fairs”
Process
■ Seminars and
webinarsStep
Process Step
■ Launch Smart Saving on The Square
■ Q&A Tables on-site
■ 1:1 financial & retirement planning meetings
Feedback from our employees and
vendors highlights an
unfulfilled need
Employee Appreciation
■ Easy access to resources
■ Address employee irritants
■ Promote existing programs
Utilization of services
below expectation
Promote Usage
■ 10% increase in RSP participation
■ Increase utilization (e.g., financial planning and legal service plan)
■ Integrate Healthy Living/Smart Saving/Work Life messaging
* RSP is the Retirement Savings Plan, the Company 401(k) plan
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OFF TO A GREAT START
Process Step
Q3 2010
Launch
■ 4,934 visits to new Smart Saving
page
■ 2,517 employees took Smart
Saving Check-In
■ 38% increase in calls to financial
planning service
Q4 2010
5 + 5 Campaign
■ 0% 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 Square
Process Step
2011
Targeted e-mail
■ 0% savers: 245 enrolled (9.5%
of audience)
■ 1% – 4% savers: 388 increased
RSP deferral rate (12.5% of
audience)
Events
“Add Power”
Campaign
■ 18 events in Phoenix, Salt Lake City,
■ Encouraged employees to take
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Greensboro, Fort Lauderdale/Miami, Atlanta,
Jacksonville, St. Petersburg and NY reached
close to 8,400 employees
2,000+ signed up for 1:1 financial planning
session
400 enrolled in RSP or increased contributions
Many more participated in follow-up education
sessions
Onsite visits for Q&A and 1:1 Ayco sessions
the 1% challenge — and direct
1% more of pay to the RSP or
personal savings. 1,032 have
increased RSP deferral rate.
Enhancements
■ Special Enrollment for life
insurance, LTD & legal assistance
plan
■ Roth 401(k) effective October 2011
■ Reduce wait for Company Matching
Contributions effective January
2012
■ Self-Directed Brokerage Account
provider change-October 2011
Innovation!
Smart Saving for Kids
• Hong Kong
• Mexico
• U.S.
5
2012
American Express Retirement Savings Plan
In honor of America Saves Week,
take action to improve your future!
Q1 2012
1% Challenge
■ Encourage employees to save 1%
anywhere for anything, vacation,
car, house, emergency fund,
retirement, etc.
Process Step
Q2 2012
Teach Children to
Save Day
■ Special savings banks
distributed with four slots for
saving: Save, Spend, Invest
and Share
■ Helpful hints posted to
Smart Saving pages on The
Square
Share Your Smart Saving Story
Process Step
Q3 & Q4 2012
Events
Smart Saving Virtual Fair
■ Parents@amex Lunch ‘n Learn program ■ Develop virtual Smart Saving Fair
■ Launch in October 2012
■ LGBT seminar and webinar
■ How to Raise a Financially Savvy Child ■ 4K Virtual employees
Campaigns
■ Beneficiary Campaign
■ One Retirement Fund
■ Button Campaigns on The Square
Barbara, need help choosing
your Retirement Fund?
■ Over 200 employees shared their Smart
Saving Story
Quarterly Webinars
■ Retirement-How to Get There, Roth-Is it Right for You, Investments
■ Managing Your Money, Four Ways to Plan Smart, Pre-Retirement Planning
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RESULTS
Retirement: 401(k) participation increased 8%
Protection & Planning
 Plan participation increased from 70% in Q3 2009 to
78% in Q2 2012
 Those deferring 5% or more increased from 72% to
80% for the same period
 Locations that hosted Smart Saving Fairs increased
participation from1% to 17% for the same period
 Average deferral rate is 7.3%, up from 7.2% in 2010
 Special Enrollment for Supplemental Life
insurance, LTD and legal assistance plan
 1,260 employees elected supplemental life
insurance coverage
 560 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
Day-to-Day Expenses
Family & Kids
 Calls to the financial planning service increased by
12% from Q4 2009 to Q1 2012
 Deals and Discounts (increased utilization of
entertainment, cell phone and other discount
programs)
 5,800 employees utilized back-up child care
program
 1,500 employees enrolled in a secondary
education resource program (education
counseling for employee or employees’ children)
 275 employees utilized back-up elder care
program
Note: results include Smart Saving Fair promotion as well as individual program promotions
Locations that hosted Smart Saving Fairs showed larger increases in program utilization
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WELCOME TO THE VIRTUAL SMART SAVING FAIR!
SMART SAVING  GLOBAL  OVERVIEW
Market
Hong Kong
Mexico
US
Launch time
July 2011
Oct 2011
August 2010
Brand
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Building 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 markets
Widening the Benefits brands target audience
Overall aim
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•
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Help employees understand money concepts
Develop good money management habits
Identify and provide tools and resources for employees
Communications
• Smart Saving marketing promotions
• Presence on The Square (company intranet)
Metrics
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Program participation rate
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Program participation rate
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Attendance at launch events
401(k) Plan participation
Utilization rates of other programs
Participant survey results
Hits to The Square
Targeted communication metrics
Program developed in U.S. and expanded and adapted to local markets
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SMART SAVING  GLOBAL  OVERVIEW  2012
Market
UK
Canada
Singapore
Launch time
July 2012
Oct 2012
August 2012
Brand
•
•
•
Building upon the Smart Saving brand in the US, Hong Kong and Mexico
2012 expansion to the UK, Canada and Singapore
Widening the Benefits brands target audience
Overall aim
•
•
•
Help employees understand money concepts
Develop good money management habits
Identify and provide tools and resources for employees
Communications
• Smart Saving marketing promotions
• Presence on The Square (company intranet)/adapted for each local market
Metrics
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Program participation rate
Discount Program utilization
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Program participation rate
Discount Program utilization
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Attendance at launch event
Program participation rate
Discount Program utilization
Program developed in U.S. and expanded and adapted to local markets
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SMART SAVING KIDS  GLOBAL  OVERVIEW
Market
Hong Kong
Mexico
US
Launch time
Aug / Sep 2011
Oct 2011
Nov 2011
Brand
•
•
Building upon the Smart Saving brand in the US and Hong Kong and introducing Smart Saving in Mexico
Widening the Benefits brands target audience
Overall aim
•
•
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Help kids understand money concepts
Develop good money management habits
Facilitate dialogues and co-learning on money management between kids and parents
Communications
• Smart Saving Toolkits
• Smart Saving Kids Guidebook
• Presence on The Square
Age group
6 to 14
6 to 12
7 to 18
Metrics
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• Program participation rate
• Savings amount after 3 months
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Program participation rate
% of participants completing the 4month money management
development program
% improvement on money
management (if available)
Program participation rate
Participant survey results
Hits to The Square
Follow up responses/results
Number of toolkits distributed
Program developed collaboratively and delivered locally
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INTEGRATED BENEFITS STRATEGY
Blog
Events
Newsletter
Intranet
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CONTACT INFORMATION
Barbara Kontje
Director, Global Retirement & Smart Saving
American Express Company
212-640-0288
Barbara.a.kontje@aexp.com