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Why AmEx (AXP), Nova Credit's Partnership Expansion is Crucial?
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American Express Company (AXP - Free Report) recently announced that it is expanding partnership with fintech company Nova Credit to provide credit access to immigrants from four countries. The deal will allow the newcomers to the United States from Brazil, Nigeria, Kenya and the Dominican Republic to use their credit history from the home country for applying for personal credit cards.
In 2019, Nova Credit launched a worldwide credit scoring and reporting platform named Credit Passport, which was connected with the online card application process of American Express. The platform enables companies like AXP to decide quickly and efficiently on a new application for credit card from a newcomer in the country. With the latest move, the number of serving countries through the platform has increased to nine. The platform is already working with people coming from the United Kingdom, Australia, India, Canada and Mexico.
Why is this regarded as a prudent move by American Express and Nova Credit? Let’s delve deeper.
Beneficial for All
Thousands of people have already benefited from this platform in this short period of time and the number is expected to rise rapidly in the coming days. Both the companies are working on extending services to more countries next year. The move is likely to enable more immigrants to gain financial success in the United States without facing the problem of building a credit history from scratch.
It can significantly increase American Express’ client base, further increasing the numbers of cards sold. This will likely play a significant role in business expansion and revenue growth. The partnership will also reduce the time required for making a decision on an application, boosting efficiency and reducing costs. This secured process will also reduce risks related to fairly determining credit score for clients.
Based in Grand Forks, ND, Alerus Financial provides numerous financial services to clients. Its financial strength is reflected by massive total assets of $3.2 billion at third quarter-end, which increased 5.4% for the first nine months of 2021. Rising investment securities will likely keep boosting ALRS’ asset position in the coming quarters.
Alerus Financial’s bottom line for 2021 is expected to jump 11.5% year over year to $2.81 per share. It has witnessed three upward estimate revisions in the past 30 days and no movement in the opposite direction. Alerus Financial beat earnings estimates thrice in the last four quarters and missed once, with an average surprise of 23.6%.
Headquartered in New York, Blackstone is well poised to benefit from its fund-raising ability, revenue mix and inorganic expansion strategies. The company’s fee-earning assets under management (AUM) and total AUM consistently demonstrate strong growth, aided by increasing net inflows. Over the last four years (2017-2020), fee-earning AUM has witnessed a CAGR of 11.9% and total AUM saw a CAGR of 12.5%.
Blackstone’s 2021 earnings are expected to rise 64.2% to $4.35 per share. It has witnessed five upward estimate revisions in the past 30 days compared with none in the opposite direction. BX beat earnings estimates in all the last four quarters, with an average of 23.7%.
Houlihan Lokey — headquartered in Los Angeles, CA — provides multiple financial services to clients all over the world. Its growing footprint in Europe and Asia’s investment banking services field will help HLI boost strategic and shareholder value in the coming days. Rising average transaction fees will help HLI increase corporate finance revenues.
The full-year 2022 bottom line of Houlihan Lokey is expected to rise 36.8% year over year to $6.32 per share. In the past 30 days, it has witnessed four upward estimate revisions and no downward movement. HLI beat earnings estimates in all the last four quarters, with an average of 39.5%.
Price Performances
American Express’ shares have increased 35.2% in the past year compared with the 16.2% rise of the industry.
Image Source: Zacks Investment Research
During this time period, shares of Alerus Financial, Blackstone, and Houlihan Lokey have jumped 24%, 123.1%, and 56.9%, respectively.
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Why AmEx (AXP), Nova Credit's Partnership Expansion is Crucial?
American Express Company (AXP - Free Report) recently announced that it is expanding partnership with fintech company Nova Credit to provide credit access to immigrants from four countries. The deal will allow the newcomers to the United States from Brazil, Nigeria, Kenya and the Dominican Republic to use their credit history from the home country for applying for personal credit cards.
In 2019, Nova Credit launched a worldwide credit scoring and reporting platform named Credit Passport, which was connected with the online card application process of American Express. The platform enables companies like AXP to decide quickly and efficiently on a new application for credit card from a newcomer in the country. With the latest move, the number of serving countries through the platform has increased to nine. The platform is already working with people coming from the United Kingdom, Australia, India, Canada and Mexico.
Why is this regarded as a prudent move by American Express and Nova Credit? Let’s delve deeper.
Beneficial for All
Thousands of people have already benefited from this platform in this short period of time and the number is expected to rise rapidly in the coming days. Both the companies are working on extending services to more countries next year. The move is likely to enable more immigrants to gain financial success in the United States without facing the problem of building a credit history from scratch.
It can significantly increase American Express’ client base, further increasing the numbers of cards sold. This will likely play a significant role in business expansion and revenue growth. The partnership will also reduce the time required for making a decision on an application, boosting efficiency and reducing costs. This secured process will also reduce risks related to fairly determining credit score for clients.
Zacks Rank & Key Picks
American Express currently has a Zacks Rank #3 (Hold). Some better-ranked players in the Finance space include Alerus Financial Corporation (ALRS - Free Report) , Blackstone Inc. (BX - Free Report) and Houlihan Lokey, Inc. (HLI - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Grand Forks, ND, Alerus Financial provides numerous financial services to clients. Its financial strength is reflected by massive total assets of $3.2 billion at third quarter-end, which increased 5.4% for the first nine months of 2021. Rising investment securities will likely keep boosting ALRS’ asset position in the coming quarters.
Alerus Financial’s bottom line for 2021 is expected to jump 11.5% year over year to $2.81 per share. It has witnessed three upward estimate revisions in the past 30 days and no movement in the opposite direction. Alerus Financial beat earnings estimates thrice in the last four quarters and missed once, with an average surprise of 23.6%.
Headquartered in New York, Blackstone is well poised to benefit from its fund-raising ability, revenue mix and inorganic expansion strategies. The company’s fee-earning assets under management (AUM) and total AUM consistently demonstrate strong growth, aided by increasing net inflows. Over the last four years (2017-2020), fee-earning AUM has witnessed a CAGR of 11.9% and total AUM saw a CAGR of 12.5%.
Blackstone’s 2021 earnings are expected to rise 64.2% to $4.35 per share. It has witnessed five upward estimate revisions in the past 30 days compared with none in the opposite direction. BX beat earnings estimates in all the last four quarters, with an average of 23.7%.
Houlihan Lokey — headquartered in Los Angeles, CA — provides multiple financial services to clients all over the world. Its growing footprint in Europe and Asia’s investment banking services field will help HLI boost strategic and shareholder value in the coming days. Rising average transaction fees will help HLI increase corporate finance revenues.
The full-year 2022 bottom line of Houlihan Lokey is expected to rise 36.8% year over year to $6.32 per share. In the past 30 days, it has witnessed four upward estimate revisions and no downward movement. HLI beat earnings estimates in all the last four quarters, with an average of 39.5%.
Price Performances
American Express’ shares have increased 35.2% in the past year compared with the 16.2% rise of the industry.
During this time period, shares of Alerus Financial, Blackstone, and Houlihan Lokey have jumped 24%, 123.1%, and 56.9%, respectively.