How Open Banking can help a foreigner with no local credit history to get a loan or a credit card?

16 septembrie 2020

Nova Credit, the premier cross-border credit reporting agency, has teamed up with Salt Edge, a company specialized in developing open banking solutions, to get instant access to the banking data of newcomers from the UK and EU.

„The new partnership improves the consumer’s access to products like credit cards and loans in the United States,” according to the press release.

„When a person moves to the U.S., a lack of local credit history makes it difficult for U.S. lenders to assess a borrower’s propensity to pay. With the help of the Nova Credit solution, the consumer gets a standardised Credit Passport® that credit card companies, lenders, and providers across industries from credit cards to telecommunications and real estate can use to evaluate their creditworthiness through international credit and bank transaction data. Nova Credit provides lenders with this information through a single API,” the company said.

The partnership with Salt Edge allows Nova Credit to expand the Credit Passport® to include bank transaction data from  31 European nations including Austria, France, Germany, Spain, and the United Kingdom, among others.

After receiving an applicant’s consent to share their international banking data, Nova Credit normalises it based on U.S. standards and incorporates it into the Credit Passport®. Salt Edge’s data enrichment solution helps simplify this process for Nova Credit. Bank data is transferred in a well-structured format, with all transactions sorted through an innovative categorisation engine based on self-learning machine algorithms.

The Credit Passport® has helped thousands of newcomers gain access to finance in the U.S. Our new partnership with Salt Edge will support the expansion of country coverage and enable more consumers to leverage their own data to start their new life in the U.S. on the right foot. Migration is a vulnerable period of transition and we’re proud to make it a bit easier with this new partnership,” said Misha Esipov, Nova Credit Co-founder and CEO.

Bank data is accessed in a regulatory compliant way, adhering to all security and personal information standards. The collaboration with Salt Edge grants Nova Credit access to real-time financial data to automatically verify the applicants’ identity, income sources, account number, and balance.

With the current U.S. financial system, it can take newcomers up to five years to build a credit history that corresponds to what they had in their country of residence. Using Salt Edge’s open banking technology, Nova Credit can refine banking data faster, and expand their country coverage to Europe and beyond so that more people can start living the American dream,” said Vladimir Pintea, Head of Open Banking Gateway.

Lack of a domestic credit history keeps millions of immigrants in the United States from realizing their dreams. Nova Credit helps newcomers and other global citizens apply for financial services using their international credit history from countries including Australia, Brazil, Canada, India, Mexico, Nigeria, South Korea, and the UK.

Nova Credit translates international credit data into a U.S.-equivalent score and reports in a format familiar to American underwriters, who use it to evaluate applications for credit products. Founded by immigrants, the firm has a diverse team from around the globe who are creating a world beyond borders to help newcomers arrive and thrive.

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Gabriela Nistor – director general adjunct BT

Tendinţele pe care le-am remarcat înainte de începerea pandemiei s-au accelerat pe perioada stării de urgenţă. Am văzut acest lucru ca o oportunitate, un tipping point pentru bancă. Post-pandemie nu avem cum sa ne întoarcem la comportamentul financiar pe care îl aveam până în februarie a.c. Relaţia românilor cu online-ul s-a schimbat. In plus, cardul fizic se va dematerializa. Vom asista la o scădere a cererii pentru cardurile fizice, respectiv la o creştere a preferinţei pentru componenta digitală a acestora.”

Sondaj

In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale in 2020?