Misha Esipov/Nova Credit
Nova Credit partners with HSBC for cross border credit sharing
The UK immigrant population is one of the fastest-growing demographics in the country but access to financial services remains difficult for many newcomers.
HSBC UK and Nova Credit have partnered on a new credit card aimed at immigrants wanting to use their international credit history.
Cross-border credit bureau Nova Credit, led by co-founder Misha Esipov (pictured) in 2016, last year raised $10m from HSBC
One year later, through this latest partnership, HSBC says it is the first UK bank to offer international customers to use their full credit history when applying for a credit card
Credit history will initially only come from 12 countries: Australia, Brazil, Canada, Dominican Republic, India, Kenya, Mexico, Nigeria, Philippines, Spain, Switzerland, and the US.
Madhu Kejriwal, head of unsecured lending at HSBC UK says newcomers to the UK can face “real and unique hurdles” owing to difficulties accessing financial services because of a lack of local credit history.
“Opening a credit card and building credit is an important step when setting up life in a new country. As the UK’s leading international bank, we’re excited to be able to offer customers the option to leverage credit history built up overseas to start a positive credit history in the UK on arrival,” Kejriwal said.
Nova Credit’s own research suggests two in three (66 per cent) working age immigrants in the UK, saw delays in accessing credit due to a lack of a UK credit history.
Just over half (55 per cent) also said they felt they had been treated differently due to lack of UK credit history.
“With nearly 100 per cent of the UK’s population growth coming from migration, businesses cannot win without a dedicated strategy to better attract and retain this highly prized, yet underserved segment,” Collin Galster, head of International at Nova Credit said.
“We’re seeing growing recognition to better serve newcomers in the UK, particularly as the FCA’s Consumer Duty rules take effect this year. The Nova Passport has been warmly welcomed by the market as a range of businesses can use it to build more compelling propositions and more valuable customer relationships,” Galster said.