HSBC has invested $10 million in Nova Credit as part of a wider partnership giving the bank global access to the startup's cross-border credit data product.
US-based Nova Credit tackles the problem that immigrants have when they arrive in a new country - that their credit history is stopped at the border.
The Nova Credit Passport capability pulls newcomers’ established credit data from their country of origin and converts it into an equivalent score and report suitable for use by lenders and financial services providers in their new host country.
HSBC has already deployed the technology in Singapore, initially to support customers with credit history in India. The bank intends to expand coverage to include customers with a credit history in Australia, the UK and the Philippines in 2022, and to more country bureaus in 2023.
In addition, HSBC Ventures has invested $10 million in the company as it prepares to tap into the Credit Passport around the globe.
Catherine Zhou, global head, ventures, digital innovation and partnerships, HSBC, says: “Seeing the company’s success in reaching migrant communities over the past six years in the US, it is clear that Credit Passport should be shared with a wider audience."
Misha Esipov, CEO, Nova Credit, adds: “Despite considerable globalization, our financial world remains far from borderless. This historic partnership with HSBC will bring the Credit Passport to new parts of the world, unlocking new frontiers in the flow of financial information.”