American Express sends clients to fintech partners for mortgages

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

This is the latest benefit for cardholders and another example of financial institutions partnering with startups to provide customers with a more comprehensive range of additional services or benefits outside of the business itself. even, an Amex spokeswoman confirmed to CNBC on Wednesday.

“Amex has tons of different partners that they’ve used over the years that used to be a lot more focused on travel, and now they’re expanding into financial services,” said Chris Brendler, senior research analyst at DA Davidson.

It is also a sign of the times. Even as the US economy reopens, staying home and spending at home have become a higher priority for many, despite the eagerness of others to get out and travel.

Eligible customers who obtain their Better or Rocket Mortgage from Quicken Loans American mortgages can receive a statement credit of $ 2,000 for compliant mortgages, or $ 6,000 for jumbo mortgages.

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

She also said that while there is a strong pent-up demand among her clients to return to travel and eat, just as many are uncomfortable traveling and will stay closer to home, and that Amex is positioning itself to serve everyone.

“If Amex can offer a value that exceeds the card’s membership fee each year, it will ensure that the cardholder continues to deal with Amex,” said David Sica, financial technology partner at Nyca Partners. .

Amex’s venture capital arm also invested in Better’s Series C fundraising in 2019. The 5-year digital mortgage lender offers a fully online process with no set-up fees and no pre-approval in three minutes. SoftBank invested $ 500 million in it earlier this year, bringing its valuation to $ 6 billion.