Wells Fargo Faces $10 Million Monthly Losses from Bilt Credit Card Partnership

Jun 16, 2024, 04:02 PM

Wells Fargo is facing financial challenges due to its partnership with Bilt, a credit card company valued at $3.1 billion. The Bilt credit card, which offers cash back on rent payments, has led to significant losses for Wells Fargo, reportedly costing the bank hundreds of millions of dollars. The bank had incorrectly forecasted key revenue drivers, expecting card users to carry balances and not fully utilize the points scheme on rent payments. As a result, Wells Fargo is now renegotiating its deal with Bilt to mitigate the ongoing losses, which are estimated at $10 million a month.