Nova Credit, a FinTech that says it is unlocking opportunities for those historically excluded from the credit system and companies looking to serve them, has expanded into Europe.
San Francisco-founded Nova Credit is a cross-border credit bureau that’s on a mission to accelerate financial inclusion for millions of creditworthy individuals who immigrate to new countries every year.
Upon arrival, these individuals are without any credit history that lenders in their destination country can evaluate. Subsequently, they struggle to access fairly priced credit-based products like credit cards, car finance, or phone contracts and must pay as much as six months’ rent upfront or find a guarantor to secure an apartment.
Blending deep relationships with consumer credit bureaus around the world, API-driven credit risk technology, and a vast understanding of the regulatory landscape for consumer credit, the Nova Passport capability pulls newcomers’ established credit data from their country of origin and converts it into an equivalent score and report suitable for use by lenders and financial services providers in their new host country.
The company will focus initially on the UK with the ambition to serve the whole European market.
Collin Galster, vice president international at Nova Credit and director of Nova Credit UK, said, “The global credit reporting system was built within national silos that fail to meet the needs of an increasingly globalised and integrated world. Newcomers lack access to funds they need to finance new homes, cars, education, or phone contracts and must spend years rebuilding their credit scores from scratch.
“Likewise, lenders want to be able to serve this vast market of creditworthy individuals but lack the tools to do so. We’re thrilled to finally bring our cross-border capabilities to serve migrant corridors destined for and within Europe.”
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