Credit analytics company Nova Credit has launched a new platform to onboard and analyse consumer credit data from a range of alternative sources.
The live platform is already being used by companies such as American Express, HSBC, Scotiabank, Verizon, SoFi, and Yardi.
The Nova Credit Platform is designed for lending institutions to grow responsibly by streamlining onboarding, verification, and underwriting processes of credit data.
The platform features multi-source data orchestration, embedded analytics across Nova Credit’s three flagship products, flexible deployment, and an end-to-end compliance framework.
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The platform is a response to the growing introduction of open banking, which enables consumers to securely share their financial data with third-party providers to improve access to financial products and services.
Financial institutions and fintechs recognise the value this consumer-permissioned data brings to drive growth and support security. However, they are challenged by scaling access and seamlessly deploying this data into actionable credit risk insights.
Companies have struggled to seamlessly embed these workflows to drive conversion and navigate a range of analytical and compliance questions. Resolving these issues is crucial to benefit from capabilities like cash flow underwriting, automated income verification, risk monitoring, cross-border credit, and more.
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“Some of the bureaus will tell you that the reason that ~100 million Americans struggle with financial access is that there simply isn’t enough data on them,” said Nova Credit co-founder and chief executive Misha Esipov.
“Our view is the opposite. There is an abundance of consumer data, but lenders don’t have a seamless and compliant way to access it.”
“As the use of alternative credit data continues to mature, ensuring the data is trustworthy, compliant, and accurate must be a top priority for lenders who look to incorporate it into their underwriting practices,” added Nova Credit chief technology officer Yacine Azmi.
“In addition to reliable data, the ability to assess credit risk accurately and within one, easy-to-integrate platform is paramount, but working with an experienced partner who understands both the credit analytics and compliance is what will separate the best lenders from the pack.”
