Key Financial Service Firms to Enter Each Other’s Turf

American Express Co. and Vanguard Group, two of the nation’s biggest financial services companies, unveiled plans Wednesday to enter competing businesses in an effort to attract more customer assets.

American Express is joining the ranks of Vanguard, Charles Schwab Corp. and Fidelity Investments by starting a business that gives customers access to mutual funds, money market accounts and discount brokerage services.

Vanguard is entering the financial planning business with its new Personal Financial Services program, a mix of investment advice, estate and retirement analysis, and trust administration. Vanguard’s business will be different from others in that services will be provided over the telephone rather than through face-to-face meetings with customers, said John J. Brennan, the company’s president. He also said Vanguard, the nation’s No. 2 mutual fund group, will offer these services at a lower cost than rival firms.

American Express’ venture, Financial Direct, is designed for investors who prefer to make choices on their own, the company said. Until now, American Express focused on providing financial planning and investment advice to clients through its Financial Advisors subsidiary.

American Express said Financial Direct initially will offer a selection of mutual funds that can be purchased for an initial investment of $2,000. In addition, the company will offer the Strategist Money Market Fund, which allows investors to write unlimited checks for a minimum initial investment of $20,000.

American Express will also offer fixed- and variable-rate retirement annuity products.