Nova Credit Teams with Alloy on Inclusive Business Lending

San Francisco-based FinTech Nova Credit partnered with identity decisioning platform Alloy to help lenders become more inclusive and serve more consumers across the credit spectrum without increasing the risk of fraud, according to a company press release Tuesday (May 24).

Nova Credit helps credit-excluded customers access credit and gives financial institutions the ability to expand their number of potential customers without risk.

“Our mission at Alloy is to create a future where financial services are accessible for all, including access to credit to millions of people who don’t fit traditional profiles for creditworthiness,” said Laura Spiekerman, co-founder and CRO of Alloy, in the company press release.

“Our partnership with Nova Credit expands our ability to help financial institutions get the trusted data they need to confidently provide access to credit to people who have traditionally been excluded from it,” she said.

Nova Credit uses first-party data to develop a more accurate picture of financial identity to assist lenders in evaluating applicant profiles more fairly through its Credit Passport, a cross-border credit solution giving lenders access to international credit data on new-to-country consumers; and Cash Atlas, a cash flow underwriting solution that allows financial institutions (FIs) to improve their risk assessment and use bank transaction data for their lending decisions.

Alloy will integrate Nova Credit’s products into the credit underwriting decisioning capabilities on its platform, so lenders can have faster and easier access to credit risk data and analytics.

Related: Nova Credit Introduces Cash Atlas B2B Cash Flow Underwriting Solutions

Nova Credit debuted Cash Atlas, a cash flow underwriting solution that generates a Fair Credit Reporting Act consumer report from bank transaction data to help businesses make more informed lending decisions based on consumers’ financial health, in early May.

Cash Atlas creates a complete picture of a consumer’s financial profile and allows consumers to share a more complete look at their financial situations by connecting consumer-permissioned financial data points, such as bank transaction data in their checking and savings accounts.

Nova Credit is expanding to the United Kingdom, with plans to eventually serve the European market. Since its launch in 2016, Nova Credit has unlocked access to more than 2 billion credit profiles and has partnered with credit bureaus in over 20 countries to standardize immigrant credit data into a form that can be accepted by U.S. banks and FinTechs.