BILT is going to be fine. The statistics are that they have deals to be the rent portal for something like a quarter of US apartment buildings. I don't know if their current valuation makes sense, but they have revenue streams beyond the card.
Unless they did something really stupid like take stake in funding rewards for the card, but it'd be beyond reckless after seeing how much of a bath WF took. That's why BILT was able to stick their tongue out to wells and say no changes... WF funded rewards, including rent rewards. Until WF threatened to place a $250 - $300 AF on the card at least.
Originally Posted by
gudugan
Following up on this, here's the letter I received from Wells Fargo:
I heard of a lot of issues with the switchover of the BillPay from Evolve routing numbers to Column NA and the authorization of rent requirement.
Others have already stated it, but new cards are coming in February for BILT, and Cardless/First Electronic Bank may be unwilling or unable to take over the portfolio from WF. In particular WF may demand that Cardless/FEB buy out the BILT portfolio face value or at a discount - which they may not be able to absorb (portfolio too large), unwilling to take on the risk of the portfolio, or both. F.E.B. only has a net revenue of $26 million a year... there is not room for them to make a Wells Fargo sized error of losing $10M USD/mo on a single product.
(That's also a huge argument as to why a major nerf in the product is inevitable, spun as a win by CEO Ankur Jain... decreased general rent rewards, higher minimum transactions/spend, some increases in affiliated BILT merchant discounts, to say that the cards are more rewarding for "
those who engage with BILT's ecosystem the most.)
Anyways, I wouldn't lose sleep over it. Wait and see what happens.