US-based cross border consumer credit reporting fintech Nova Credit has announced its expansion into Europe.
Nova Credit helps immigrants use their international credit history to access credit cards, auto loans and rental properties.
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The fintech uses API-powered credit risk technology to access consumers’ credit data from their country of origin and converts it into an equivalent score, which can be used by lenders in the new country.
Nova Credit has formed partnerships with credit bureaus in 20 nations across the globe to access their data and convert it into a format used by lenders and financial services providers in the US.
Initially, Nova Credit will focus on serving immigrants in the UK market with plans to expand across the European region.
The UK base will help Nova Credit in forming new partnerships with credit bureaus throughout Europe and the rest of the world.
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By GlobalDataNova Credit international VP & Nova Credit UK director Collin Galster 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.”
Nova Credit noted that currently, ten million immigrants are living in the UK and 3.5 million of them have little or no UK credit history.
Based on the historic credit data in their home country, they could be categorised as ‘creditworthy borrowers’ by UK lenders.
The fintech was founded in 2016 and raised $50m in a Series B funding round in February 2020.
Nova Credit head of UK market development Matt Davies said: “We are excited to bring the knowledge, experience and relationships that Nova Credit has built over several years to enable the UK and European lenders and financial services providers gain access to this deserving but massively underserved, untapped market.”
