letter to shareholders
worldwide. In 2006, we launched variations of this program in Canada, Germany, Puerto Rico, Spain and Sweden. • We upgraded Platinum cards in European markets with new benefits that include comprehensive trip insurance and free access to airline club lounges for both the cardmember and a travel partner. The changes helped to drive double-digit increases in spending on Platinum cards in these markets. • We also took steps to further distinguish American Express as the payments company that offers personalized service to cardmembers. For example, in Australia, we introduced Membership Rewards Concierge Service to help cardmembers create customized rewards packages. • In certain markets where incomes are growing rapidly, we strengthened our offerings for affluent consumers. For example, we introduced American Express Platinum credit cards in India and Argentina, and rolled out Centurion in Singapore. Capability Improvements. Some of our strongest innovations during the year occurred within risk management, information management and the online capabilities that support our card products and related programs. The American Express Web site, once a transaction-processing vehicle, has evolved into a multidimensional, interactive way to connect with cardmembers and promote our brand. An online component is now integrated into almost every element of our business, from card acquisition to marketing to travel management, bill payment and more. Since we rebuilt and relaunched our global Web site in late 2005, we have continued to add new features that encourage cardmembers to interact with us online. For example, we redesigned our Membership Rewards site and improved its search features; extended the highly popular Pay with Points option; customized Web sites for different geographic markets; retooled online applications for cards; and made it even more convenient for cardmembers to manage their accounts online. With our expanded Web capabilities, we are creating virtual communities of merchants and high-spending cardmembers. One such example is My WishList, a seasonal Web site developed in conjunction with U.S. merchant partners. Through the site, we provide cardmembers opportunities to buy a limited number of sought-after items such as automobiles, trips, electronics and jewelry at a fraction of their retail prices, as well as access to hundreds of offers from top brands. Our Web capabilities are also helping to improve profitability. Customers who choose the Web channel not only save the company processing costs, but they also have proven to be, on average, bigger spenders who engage more actively with American Express. Another way to facilitate spending among all cardmembers is to look for ways to clear potential obstacles that may stand in their path. Our risk management organization enables us to do this without sacrificing credit quality. In 2006, we improved the speed and accuracy with which we analyze cardmember applications and approve requests to increase spending limits or extend credit. And we took additional steps to prevent fraud while ensuring that all transactions remain as seamless as possible, whether they occur at a cash register or online.
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