Nova Credit

Nova Credit is a financial technology and alternative data company that gives lenders access to unified consumer credit and income data through a single platform. Its stated data sources include international credit bureaus, bank data aggregators, payroll systems and automated document data^[1].

The company's products center on cash flow underwriting, using consumer-permissioned bank transaction and income data to assess creditworthiness. Nova Credit reports operating as a consumer reporting agency (CRA) under the Fair Credit Reporting Act (FCRA) in the United States, and claims more than 7,000 customers served worldwide, 26 underlying data sources and over $10 billion in credit value unlocked for consumers^[1].

What It Does

Nova Credit aggregates consumer-permissioned financial data and turns it into underwriting inputs. The company describes four core use cases: reaching new consumer segments such as newcomers without U.S. credit history, orchestrating data across multiple providers, reducing portfolio risk through source-based data, and automating income verification^[1].

It markets its platform as an alternative to in-house integrations, stating that lenders can implement cash flow underwriting or international credit data nine to twelve months faster than building equivalent capability internally^[1].

Products

The product line comprises four applications on a common platform. Cash Atlas applies bank transaction data to credit risk assessment; Income Navigator automates income verification and, per the company, incorporates advanced document fraud detection; Credit Passport translates international credit histories so that qualified newcomers can be approved for mainstream credit; and Eligibility Compass is positioned as a way to shorten income and asset verification from weeks to minutes^[1].

The company has also referenced the NovaScore Cash Flow, a consumer credit risk score built on cash flow data, in its published materials^[1].

Data and Methodology

Inputs span traditional credit bureau files, domestic checking and savings account aggregator feeds, payroll systems and consumer-supplied documents, harmonized on the Nova Credit Platform^[1].

The company states that it gathers consumer-permissioned data through integrations with international credit bureaus and domestic account data aggregators, and that its solutions are designed to transform these new data sources into credit risk insights^[1].

Buyers and Use Cases

Target verticals include banks, tenant screening firms, fintechs, credit unions, auto lenders and affordable housing operators^[1]. Companies shown as clients or partners on the corporate site include HSBC, SoFi, Yardi, MoneyLion, Scotiabank and Sallie Mae^[1], and the company has publicized cash flow underwriting deployments with Chase, PayPal and Yardi^[1].

A published case study describes SoFi using Nova Credit to verify customer income through bank transaction data^[1].

History and Funding

TechCrunch reported in October 2023 that Nova Credit had raised $45 million to grow its cross-border and alternative data credit products^[2]. A company announcement separately describes a $35 million Series D round intended to accelerate the adoption of cash flow underwriting^[1].

Compliance

According to the company, it operates globally as a consumer reporting agency under the FCRA in the U.S.; clients using its data can approve, decline and send adverse action notices, while Nova Credit manages disputes^[1].

More datasets from Nova Credit

Nova Credit lists 1 datasets on this encyclopedia. The most representative listings:

More about Credit & Lending

Credit & Lending is one of the signal families covered by The Alternative Data Encyclopedia, with 13 providers and 63 datasets listed in the register. For how the signal is generated, its caveats and the compliance considerations, and the full provider list, see the category article.