Amex Bank, once a major player in the financial market, is in the process of being sold to Discover Bank following a sharp 30% drop in valuation. Founder Razorsharpbread confirmed the sale, citing increased competition and a lack of time to manage operations.
All quotes below are taken from an exclusive interview with Razorsharpbread.
I didn’t have the time to run it anymore.
The bank’s decline was driven by faster automation from competitors, particularly Discover, which improved withdrawal speeds—one of Amex’s key selling points. As news of the sale spread, customers rushed to withdraw funds, cutting Amex’s valuation by $800,000.
People found out the bank was being sold and withdrew money, so our valuation went down.
Despite the hit, Amex is still expected to sell for around $1.75 million, with the deal set to close by the end of the week.
Amex Bank had once thrived by offering higher interest rates and quick transactions, growing rapidly through word-of-mouth marketing. No money was spent on ads, yet the bank became a top choice for customers looking for speed and reliability.
We simply advertised higher rates, boasted faster withdrawal times, and sent out many, many ads.
However, as automation became the new standard, Amex struggled to keep up, and the market shifted in favor of banks with better technology.
The sale marks the end of an era for Amex, but its rapid rise and fall serve as a reminder of how quickly the financial landscape can change.