Interview: Nikki Cross of Nova Credit discusses the significance of consumer-approved data as the coming trend
In today's rapidly evolving lending landscape, a pioneering company named Nova Credit is revolutionising the industry by providing consumer reports based on consumer-permissioned data, with a strong focus on cash flow data underwriting for lenders.
Nikki Cross, the senior director of data science solutions at Nova Credit, is leading the charge. She bridges the gap between the internal data science team and prospects' and clients' data science and credit policy teams, serving as a vital link in the solutions consulting function.
The top three benefits of real-time access to consumer-permissioned transaction data for lenders are manifold:
1. **Improved Predictive Underwriting and Risk Assessment:** Real-time transaction data offers lenders a granular insight into a borrower’s cash flow patterns, enabling more accurate and timely credit decisions. This data helps approve more applicants while avoiding unintended risk, especially for thin-file or credit-invisible consumers who lack traditional credit history.
2. **Enhanced Fraud Detection and Financial Security:** Access to transaction data in real time allows lenders to identify suspicious or fraudulent activity quickly, preventing losses before they escalate. Early detection improves customer confidence by reducing false positives and streamlining fraud management processes.
3. **Operational Efficiency and Automation:** Real-time data feeds enable automated cash flow underwriting and more seamless permissioning experiences, reducing time and expenses associated with credit decisions. Integration of this data supports multiple purposes like application pre-fill, account verification, and funding, making lending faster, more scalable, and cost-effective.
These benefits empower lenders with more accurate, secure, and efficient credit evaluation capabilities, driving better outcomes both for themselves and their customers.
It's important to note that the concept of using deposit information to make lending decisions is not new. Local banks used this approach before credit bureaus existed, and big banks with existing deposits often still do. However, Nova Credit has modernised, democratised, and standardised this approach through technology and analytics.
Integrating new data sources like cash flow into underwriting practices can be challenging for lending institutions, as it requires new interpretation alongside traditional credit data and may take several years to implement. Economic uncertainty is another significant challenge, as underwriters are in recession-planning cycles and trying to understand what might be coming and how to prepare for more conservative growth.
Nikki Cross's role involves helping lenders understand how to effectively use consumer-permissioned data, starting with education and working with them to build implementation strategies and policies that make sense for their business context.
Nova Credit is making strides in the industry. They are an Associate Partner of Open Banking Expo USA 2025, and Chris Hansen, general manager, Cash Atlas Solutions at Nova Credit, will be speaking at the event on June 26 in New York.
Further reading can be found in the article titled "Entrata integrates Nova Credit's 'Credit Passport' to improve access to housing." As the lending industry continues to evolve, the integration of real-time consumer-permissioned data is poised to become a game-changer.
- Nikki Cross, the senior director of data science solutions at Nova Credit, plays a significant role in bridging the gap between internal and external data science teams, serving as a vital link in the solutions consulting function.
- By gaining real-time access to consumer-permissioned transaction data, lenders can benefit from improved predictive underwriting and risk assessment, making credit decisions more accurate and timely.
- The integration of this data allows for enhanced fraud detection and financial security, enabling lenders to identify and prevent suspicious or fraudulent activity quickly.
- As technology continues to evolve, Nova Credit is democratizing and modernizing the use of deposit information in lending decisions, making the process more standardized and effective.
- Chris Hansen, general manager of Cash Atlas Solutions at Nova Credit, will be speaking at the Open Banking Expo USA 2025 on June 26 in New York, showcasing Nova Credit's advancements in the industry.
