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Amex expands Nova Credit, Marqeta goes into credit, and the risk in B2B loans

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Amex expands Nova Credit, Marqeta goes into credit, and the risk in B2B loans

This article summarizes Tearsheet’s Lending newsletter, which underlines the important moves and stories in digital lending. To sign up, please click here.

Credit scores are becoming easier to access, thanks to fintech. The industry has seen a number of fintechs targeting underserved communities that don’t have credit histories. And people coming in from outside the US can now migrate their credit score thanks to Nova Credit, who recently expanded its list of accepted countries in partnership with Amex. 

Amex expands Nova Credit access to more US newcomers

As credit history typically stops at the border, many people who move to the US from abroad have to build consumer credit from scratch. Nova Credit wanted to address this problem and created an alternative score to assess foreign residents’ creditworthiness based on their home country credit data

American Express partnered with Nova Credit to expand credit access to people coming in the US. Launched in 2019, access was already available for newcomers from Australia, Canada, India, Mexico and the United Kingdom.

Now it’s also available for people coming from Brazil, Dominican Republic, Kenya and Nigeria who have moved to the United States, enabling them to use their international credit history to apply for personal Amex cards by using its Credit Passport.

The Credit Passport is integrated into the American Express online Card application process, enabling applicants’ credit records from certain international credit reporting agencies to be instantly translated into a US-equivalent credit report and score. 

Read more

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Marqeta enters the credit card industry 
Marqeta announced a new partnership with the First National Bank of Omaha to expand its partner ecosystem as it prepares for a credit launch

Using external data to reduce B2B loan risk 
Many fintechs are addressing niche market segments with innovative solutions, like SMBs, which come with unique challenges. The right external data can enrich internal data to unlock new opportunities and create competitive advantages.

How Marqeta engineers crypto spending and rewards products
After Marqeta updated its platform to support cryptocurrency payments and crypto-based rewards on debit and credit card spending, Coinbase, Fold, Shakepay and Bakkt all started using the product

HoneyBook offers lending to a growing SMB economy
HoneyBook is capitalizing on its growing customer base to develop more financial tools for its members. It recently launched an option to offer loans and plans to expand into banking services, as well.

Inside Cross River’s ecosystem of some of the best fintech brands
Chief strategy officer Karan Mehta joined us at The Big Bank Theory Conference to discuss how Cross River’s technology enables the delivery of innovative financial solutions to millions of consumers and businesses.

What happened at COP26? Follow the money.
When talking about the climate crisis or any other wide-ranging issue, banks typically have two main levers they can pull: lending and investments. And these are the two practices that are coming under increased scrutiny

The roadmap ahead for Square Banking with Luke Voiles
Luke Voiles heads Square’s new banking group. He shares his vision for the future of banking and the role Square will play in the global SMB ecosystem.

How Marcus by Goldman Sachs’ pairs direct products with strong partnerships
Goldman Sachs realized that the winning strategy was having a two-sided approach: setting up Marcus as both a customer-facing business as well as a banking partner for other companies.

Things we’re reading

Capital One just said bye to overdraft fees — but are overdraft fees saying bye to banks? (The Financial Brand)

Microsoft to bake BNPL into browser with Zip (Finextra)

American Express taps Opy for its first US third-party BNPL offering (Techcrunch)

SMB lender Fundbox raises $100 million at a $1.1 billion valuation (Techcrunch)

Microloans are set to grow 180% in the next five years (The Fintech Times)

Hometap nets $60M in fresh capital for Home Loan Platform (PYMNTS)

Rakuten, Afterpay combine BNPL, cash-back rewards (PYMNTS)

Banks And Fintech: A Partnership With A Future (Forbes)

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