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].