Those looking to get home loans will now be able to do so through American Express (Amex) and its new partnership with two FinTechs, Better and Rocket mortgage through Quicken Loans, CNBC reported Wednesday (June 30).
Amex customers who obtain mortgages from these companies will be able to access a credit statement of $ 2,000 for compliant mortgages or $ 6,000 for jumbo mortgages.
The Amex spokesperson clarified that this does not constitute a revenue sharing deal, only that partner offers will now be available to cardholders.
The partnerships were born thanks to a mortgage loan offer pilot project launched in 2019.
And the new advantage for cardholders reflects a larger trend, in which financial institutions have partnered with startups to deliver new out-of-the-box services. CNBC noted that this was somewhat of a “sign of the times,” with the reopening of the US economy seeing no change in the priorities of those who wanted to stay home and own a home during the pandemic.
DA Davidson analyst Chris Brendler, speaking to CNBC, said this allowed Amex to expand its services outside of its usual travel-focused partnerships and is now engaging in more service partnerships. financial.
Charles Birnbaum, partner of Bessemer Venture Partners, told Karen Webster last year that the new trend would likely see more FinTechs partnering with more established companies. This came as a surprise because years ago everyone was trying to “unbundle” by breaking away from the big conglomerates and focusing on perfecting one particular service.
But he said FinTechs were still planning to add more services and the next wave was always going to be companies like Shopify reconnect with financial services.
This has also happened with large companies like Apple, Google and Facebook, which added financial services, as well as other companies like Square, which has added consumer loans to its arsenal as well as stock and crypto trading. Square, according to Birnbaum, had an advantage because it also had a cast.