Those who want to get a home loan can now do so through American Express (Amex) and its new partnership with two fintech companies, It is better as well as Rocket mortgage from Quicken loans, CNBC This was announced Wednesday (June 30).
Those who are Amex customers and receive mortgages from these companies will be able to access a loan statement of $ 2,000 for a qualifying mortgage or $ 6,000 for a large mortgage.
An Amex spokesperson clarified that this is not a revenue sharing agreement, only that partner offers will now be available to cardholders.
The partnerships came about through a pilot project on offering mortgages that began in 2019.
And the new cardholder bonus reflects a broader trend where financial institutions are partnering with startups to offer new custom services. CNBC noted that this is something of a “sign of the times” as the US economy reopens, overlooking the changing priorities of those who wanted to stay at home and own a home during the pandemic.
DA Davidson analyst Chris Brandler, speaking with CNBC, said this has led Amex to expand its services beyond its usual travel-focused partnerships and is now expanding its financial services partnerships.
Charles Birnbaum, partner in Bessemer Venture PartnersKaren Webster said last year that the new trend is likely to see more FinTechs partnership with more established companies. This came as a surprise because many years ago everyone was trying to “split up”, breaking away from the big conglomerates and focusing on honing only one particular service.
But he said that FinTechs has always had the intention of adding more services and that the next wave will always be companies like Shopify merging with financial services again.
The same thing happened with such large companies as Apple, Google as well as Facebookwhich added financial services along with other companies such as Squarewhich has added consumer lending to its arsenal alongside stock and cryptocurrency trading. Square, according to Birnbaum, had the edge because it also had a distribution.