American Express Partners with Fintech Firms to Promote Online Mortgaging

July 2, 2021
Sarah Gormley

Credit card companies and fintech firms are beginning to see the great effects of partnering. American Express (Amex) has just announced its partnership with two fintech companies to help market for customers looking for home loans.

This partnership is the latest benefit for cardholders as well as another example of financial institutions partnering with fintech start-ups to give customers more and better services as well as additional perks outside of the firm itself, an Amex spokeswoman tells CNBC.

Amex customers who get their mortgages from Better or Rocket Mortgage by Quicken Loans are eligible to get a statement of credit of either $2,000 for conforming mortgages or $6,000 for jumbo mortgages.

At the start of the covid-19 pandemic, people wanted nothing more than to go outside and be free — no one wanted to be locked at home. Over time, many people got very comfortable with life inside. As the US economy gets back on its feet, staying at home and spending money on larger homes has become one of the largest priorities for those who have a newfound enjoyment of being inside and hope to stay home rather than go out and travel the world.

Many people are excited about this partnership and what it means for the future. D.A. Davidson analyst Chris Brendlers says that “Amex has a lot of different partners that they’ve used throughout the years, which used to be a lot more travel-focused, and now they’re broadening out into financial services. I’m doing it.”

A spokeswoman for Amex shares that there is not a revenue-sharing agreement between the companies, it is merely Amex providing marketing for its fintech partners by making the partner offers available to their cardholders.

The idea to become partners stemmed from a mortgage offering pilot that began in 2019. The Better pilot went live earlier this month and Rocket Mortgage will be released on Tuesday. In addition to the pilot, Amex Ventures was an investor in the Better’s Series C fundraiser in 2019. The digital mortgage lender has a valuation of $7.7 billion following its huge investment of $500 million from SoftBank. The company provides an entirely online process with no origination fee and pre-approval within minutes.

This partnership shows that credit card companies and fintech companies can benefit each other. While this partnership is with American mortgage companies is great for those looking for a loan in the United States, it does not do much for customers looking to purchase a home abroad.

Our platform, OnlineApplication, is a European fintech that has taken the mortgage process that can take weeks and do it within minutes. We take pride in our ability to make mortgages and insurance easier, faster, and more efficient for everyone! Head to the home page for some more in-depth information on how we can help you!

 

References:

Tanayamac. “American Express Partners with Fintech Firms to Help Customers Find Mortgages.” CNBC, CNBC, 30 June 2021, www.cnbc.com/2021/06/30/american-express-is-sending-customers-to-fintech-partners-for-mortgages.html.

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