By extending their partnership, which initially started in 2020, Nova Credit aims to enable SoFi to access consumer-permissioned bank data and cash flow analytics via its Cash Atlas solution, providing the company with the ability to optimise how it serves its members.
As a credit infrastructure and analytics company, Nova Credit centres its efforts around allowing businesses to expand their operations responsibly by leveraging alternative credit data. Also, the company is a CRA that utilises its data infrastructure, compliance framework, and credit knowledge to assist lenders in mitigating the complexities of traditional credit analytics.
The expansion of Nova Credit’s partnership with SoFi comes shortly after the company teamed up with Quarters to help Canadian newcomers establish and transfer their credit history. By including Nova Credit’s Credit Passport service, Quarter’s users located abroad were set to be able to leverage their existing credit history to access rental opportunities and secure housing before their arrival in the country.
Even if traditional credit reporting supports lenders in assessing an individual's history of repayment, cash flow data works towards delivering a more real-time and granular approach of a consumer’s financial health. Through this, lenders can generate a more complex risk profile for consumers across the credit spectrum.
As part of the current agreement, SoFi plans to implement Nova Credit’s Cash Atlas solution in its loan underwriting to assess credit risk, augment credit eligibility, and improve how it interacts with its users. When commenting on the announcement, representatives from Nova Credit underlined that both their company and SoFi share a commitment to offering more financial opportunities to individuals. After working together for four years, the two companies now intend to collaborate on allowing the capabilities of cash flow analytics to assist more individuals access the financial products they require to achieve their objectives.
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