How to win in an area commonly perceived as a commodity business: Practical advice from one product manager's experience

Abstract

American Express Bank (AEB), operating in an area frequently referred to as a commodity business, has consistently achieved growth rates several times that of the market as a whole, launched award winning products, and is consistently rated among the best providers in terms of customer satisfaction. This paper shares the author's views on the payments business and discusses specific approaches that contribute to developing winning products. The reader will learn that, while an individual payment may be a commodity, with the right perspective the payments business does not have to be. An effective product manager can avoid a commodity mindset by always keeping the customer's perspective in mind. In this practical exploration into the world of payments, filled with specific examples from the author's experience as a Global Head of eBusiness Development for Financial Institutions Group of AEB, the author suggests three rules that will serve a product manager well in achieving the customer's perspective: (i) perpetually ask 'Why?'; (ii) focus on what people do, not what they say; (iii) address tomorrow today.