Scenario: American Express

American Express originally opened for business in 1850 as a successful express delivery service for freight and valuables, not as a charge card company or a financial institution. At the time, the U.S. Postal Service was slow, expensive, and would not deliver anything larger than a package the size of a letter envelope. American Express seized the opportunity and became an early and important player in the westward expansion of America.

Though originally not a financial institution, most of American Express’s customers were banks. American Express found itself delivering small packages that held stock certificates, currency, notes, and other financial instruments. The company scaled down its delivery services and began selling its own financial products. By 1891, American Express was selling the first internationally accepted traveler’s checks. This globally focused product created the need to establish worldwide locations; in 1895, American Express opened its first European office in Paris and by 1910 had ten European branches.