A credit infrastructure and analytics company announced this month that it is working with PayPal to empower cash flow insights.
PayPal intends to utilize Nova Credit’s Cash Atlas to incorporate cash flow underwriting capabilities across consumer credit products in Canada and beyond, the two fintech firms jointly revealed.
The Cash Atlas feature allows lenders to access, analyze, and act on cash flow data in an FCRA-compliant manner.
This cash flow data provides a real-time view of a consumer’s financial health, allowing lenders to generate a more complete risk profile across the credit spectrum, according to Ratinder Bedi, who serves as Global Chief Credit Officer at PayPal.
“Traditional underwriting was leaving behind qualified consumers, especially in the Buy Now, Pay Later space,” Bedi suggests. “Nova Credit’s Cash Atlas enables us to responsibly incorporate cash flow data and expand credit access without compromising our commitment to consumer financial health.”
Integrating Cash Atlas into PayPal’s core credit decisioning means customers receive more personalized experiences, while maintaining rigorous risk management standards, according to Nova Credit cofounder Misha Esipov.
“PayPal’s approach to responsible innovation aligns perfectly with our mission to power a more fair and inclusive financial system,” the chief executive officer remarked. “This collaboration will help bridge the gap for consumers who are financially capable but lack sufficient credit history.”
As Buy Now, Pay Later usage continues to grow, PayPal’s enhanced underwriting capabilities position the company to capture a larger share of this expanding market and provide greater access to credit, according to Michelle Gill, an executive vice president at PayPal who manages financial services for small businesses.
“We’re proud to partner with a trusted leader like Nova Credit, whose proven track record in alternative credit data further strengthens PayPal’s differentiated underwriting approach to deliver more inclusive credit solutions for our customers,” Gill stated.
Founded in 2016, Nova Credit has been working with Canada’s largest financial institutions, including establishing a partnership with The Royal Bank of Canada as well as one with Scotiabank and also the Bank of Montreal.
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