San Francisco-based FinTech Nova Credit on Tuesday (May 3) unveiled 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.
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.
“At this point in the economic cycle, there is so much instability and more unknowns yet to come,” Sarah Davies, chief data and analytics officer at Nova Credit, said in the press release. “Cash Atlas comes at a critical time to support lenders as they navigate this tumultuous lending landscape.
“It provides the necessary toolkit to holistically manage credit risk for mainstream and credit excluded consumers by clarifying for the lender whether the consumer has the capacity to afford a loan based on the financial health of their bank account and also whether the consumer is likely to repay the loan given the availability of funds.”
Per the release, Cash Atlas compiles the data — including debit transactions, net inflows and outflows, overdraft and how consumers generally manage their finances — to provide businesses with actionable intelligence that’s unavailable in traditional credit reporting.
“Though traditional credit data-based underwriting practices provide a strong barometer for decision makers, they have unintentionally excluded a broad swath of consumers from credit and financial services,” said Misha Esipov, co-founder and CEO of Nova Credit. “This in turn has denied millions of worthy Americans the opportunity to set a strong foundation for their financial future.”
In April, Nova Credit said it is expanding to the United Kingdom, with plans to eventually serve the European market.
Related: US-Based FinTech Nova Credit Expands to Europe
Nova Credit said that since its launch in 2016, it 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.
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