Chase Uses Nova Credit to Bolster Cash Flow Underwriting

Chase is using Nova Credit to help power its cash flow underwriting capabilities.

Chase will be employing the credit infrastructure and analytics company’s Cash Atlas for cash flow underwriting, as well as its Credit Passport to access and make decisions with international credit data, according to a Wednesday (Sept. 3) press release.

“These solutions will enable Chase to serve more customers across the U.S. who have limited credit history or are underserved by traditional credit models,” the release said.

Cash Atlas provides Fair Credit Reporting Act-compliant cash flow analytics that illustrate consumers’ actual financial health using trended data on income, expenses and assets, thus offering a more complete picture of the consumer, per the release.

“Chase is committed to being the bank for all, and tools like Cash Atlas and Credit Passport will help with this mission by giving us a more comprehensive view into each individual and their credit needs,” Chris Reagan, president of Chase Branded Cards, said in the release. “With this new data source, we can better assess credit risk, make more informed lending decisions, and approve customers with right-sized lines of credit.”

PYMNTS Intelligence has examined the various methods lenders are using to gain a more comprehensive view of borrowers’ financial health.

Lenders typically rely on FICO scores, which can be valuable tools, but they sometimes come up short regarding applicants’ ability to repay their loans, PYMNTS wrote in January.

“While you need a FICO score, we believe there’s more to know,” ValidiFI CEO John Gordon told PYMNTS at the time.

FICO may be best seen as a lagging indicator of creditworthiness and ability to repay, he added.

“But bank data and the consumers’ bank relationship, with all the information that’s presented, can fill in the gaps,” Gordon said. “What we have found is that if you’re just looking at accounts and routing numbers and not looking at the marriage between the account, the routing number and the consumer who’s applying with it — well, then, you’re missing the opportunity to better quantify that consumer on a number of different levels.”