American Express is sending customers to fintech partners for mortgages

• American Express is sending customers to Better and Rocket Mortgage by Quicken Loans American for home loans.
• It's the latest perk for cardholders and another example of financial institutions partnering with start-ups to offer customers a fuller suite of services or additional perks.

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• AXP

American Express has two new fintech partners it's sending customers to for mortgages.

It's the latest perk for cardholders and another example of financial institutions partnering with start-ups to offer customers a fuller suite of services or additional perks outside of the scope of the firm itself, an AmEx spokeswoman confirmed Wednesday to CNBC.

"Amex has tons 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," D.A. Davidson analyst Chris Brendler said.

It's also a sign of the times. Even as the U.S. economy reopens, staying home and home spending have become a bigger priority for many, despite others' eagerness to get outside and travel.

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

A spokeswoman for Amex said there's no revenue-sharing agreement, it's just making the partner offers available. These partnerships are the result of a mortgage offering pilot that began in 2019. Amex went live with Better earlier this month and Rocket Mortgage on Tuesday.

She also said that while there's big pent-up demand among its customers to return to travel and dining, just as many aren't comfortable traveling and will be staying closer to home.

"If Amex can offer value that exceeds the membership fee of the card each year, that'll ensure the cardholder continues to transact with Amex," said David Sica, partner at fintech-focused Nyca Partners.

Amex's venture arm also invested in Better's Series C fund raise in 2019. The 5-year-old digital mortgage lender provides an entirely online process with no origination fees and pre-approval within three minutes. SoftBank invested $500 million in it earlier this year. It has a valuation of $7.7 billion, a company spokesman told CNBC, and plans to go public through a SPAC in the fourth quarter.

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