Around 70% of people around the globe now have some form of a bank account, according to the World Bank. But when it comes immigrants, they essentially leave behind their financial histories, starting again from zero. And lots of fintech businesses are starting to focus on them.
A startup called Nova Credit wants to import financial histories from one country to another, and today it’s announcing a $50 million round of funding to grow their business. The investment was led by Kleiner Perkins, along with Canapi Ventures, Index Ventures, Nyca Partners and General Catalyst.
Nova Credit uses Credit Passport technology, which will allow for foreign credit data to be translated into a system that is familiar to American underwriters.
“The world has become increasingly globalized, with people moving around the world at an accelerating rate, yet credit history has been trapped within national borders,” said Nova Credit CEO Misha Esipov — who has worked as a banker at Goldman Sachs and at private equity firm Apollo, and himself is a first-generation Russian immigrant moving to the U.S. with his parents when he was three
“Nova Credit is changing that by enabling millions of newcomers who have hard-earned credit abroad to access financial services more equally in the U.S.”
“Credit is fundamental to economic success, but today’s systems and infrastructure have not kept up with an increasingly mobile world,” said Ilya Fushman, a partner at Kleiner Perkins, in a statement. “Nova Credit is democratizing access to credit globally and we’re delighted to lead the Series B. ”