American Express Sends Clients to Fintech Partners for Mortgage Loans

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A real estate agent stands in the doorway as Jovani and Nicole Quiros of Brooklyn, NY attend an open house in West Hempstead, NY, April 18, 2021.

Rachel Brightman | Newsday LLC | Newsday | Getty Images

American Express has two new fintech partners to whom it sends clients for mortgage loans.

This is the latest perk for cardholders and yet another example of how financial institutions are partnering with startups to offer customers a more complete set of services or additional benefits beyond the firm itself, an Amex spokeswoman confirmed to CNBC on Wednesday.

“Amex has many different partners that they have used over the years that were previously more travel-focused and are now expanding into financial services,” said Chris Brandler, senior analyst at DA Davidson.

This is also a sign of the times. Even as the US economy reopens, staying at home and spending at home has become a more important priority for many, despite the urge of others to get out and travel.

Eligible clients who get their mortgages from Better or Rocket Mortgage from Quicken Loans American can get a loan of $ 2,000 for a qualifying mortgage or $ 6,000 for a large mortgage.

A spokeswoman for Amex said there is no revenue sharing agreement, it just makes partner offers available. These partnerships are the result of a mortgage loan offering pilot project that began in 2019. Amex launched Better earlier this month and Rocket Mortgage on Tuesday.

She also said that while there is a large pent-up demand among her clients to return to travel and dine, many of them are not comfortable traveling and will stay closer to home, and that Amex is positioning itself to serve everyone.

“If Amex can offer more than the card membership fee each year, it will ensure that the cardholder continues to do business with Amex,” said David Sica, a financial technology partner at Nyca Partners.

Venture division Amex also invested in Better Series C fundraising in 2019. The 5 year digital mortgage lender provides a completely online process with no registration fees and no pre-approval in three minutes. SoftBank invested $ 500 million in it earlier this year, raising its valuation to $ 6 billion.

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