Key facts
- Made Card has introduced a credit card aimed at helping homeowners manage rising costs.
- The card offers rewards on common household expenses such as groceries, gas, and utilities.
- Cardholders can receive additional rewards points equivalent to their monthly mortgage payment.
- Made Card partners with service providers to offer discounts on home warranties and property tax appeals.
- The platform uses technology to help homeowners track spending and identify potential savings.
- A partnership with Fairway Mortgage has led to widespread customer adoption and mortgage linking.
Made Card, a fintech company, has launched a credit card designed to address the increasing costs associated with homeownership and to foster long-term engagement between homeowners and their mortgage lenders. The product aims to provide continuous value throughout the homeowner's journey, moving beyond the traditional end of the relationship at closing.
Alex Song, Co-founder of Made Card, explained that the card was created in response to the challenges of home affordability, including high mortgage rates, rising home prices, and general inflation. The insight driving the product is that average monthly credit card spending is nearly equivalent to a mortgage payment. Consequently, Made Card offers rewards on significant recurring household purchases like gas, groceries, utilities, and home maintenance. It also features a 'Mortgage Match' program, providing additional rewards points up to the amount of the cardholder's monthly mortgage payment when linked to a lending partner.
Beyond rewards, Made Card is positioned as a homeowner platform. It offers cardholders free or discounted access to services such as home warranties and property tax appeals, aiming to reduce overall homeownership expenses. The platform's technology also helps homeowners manage administrative tasks by providing insights into their spending and identifying savings opportunities.
Song highlighted that borrower retention and long-term engagement are becoming critical for mortgage lenders, as industry recapture rates typically hover between 20% and 30%. Made Card provides lenders with a daily-use financial product that facilitates ongoing interaction. The company's launch with Fairway Mortgage has shown strong initial results, with customers in all 50 states and 73% linking their mortgages to the card within two months. Song believes mortgage lending is beginning to evolve with loyalty programs, similar to other industries.
For mortgage servicers and originators, the platform offers measurable outcomes by improving post-close engagement. Active cardholders are spending between $1,000 and $3,000 per month, indicating the card is becoming a primary payment method. The partnership network has also delivered significant savings, with customers averaging a 15% discount on eligible purchases. A notable success story involved a Fairway Mortgage customer earning enough rewards to offset closing costs on a subsequent loan.
Looking ahead, Song anticipates homeowner engagement will become more personalized, relying less on mass marketing and more on embedded financial products, home intelligence, and tailored experiences powered by technology, automation, and AI. He believes lenders investing in customer relationships now will be better positioned for future refinance and repeat business as interest rates normalize.