This first-of-its-kind partnership will expand access to electric vehicle subscriptions by enabling automated credit risk decisioning for Autonomy customers with ‘thin file’ or no credit history
Today Nova Credit, the world’s leading consumer-permissioned credit bureau, and Autonomy™, the nation’s largest electric vehicle subscription company, announced a partnership to help make access to electric vehicles easier for credit customers with ‘thin file’ or no credit history The partnership will enable Autonomy’s application process with Nova Credit’s cash flow underwriting solution, Cash Atlas™, allowing Autonomy to qualify a greater number of customers with ‘thin file’, or no credit history for a vehicle subscription. This streamlined, data-driven process will help Autonomy sustain rapid yet qualified customer growth as it expands into additional geographies and other in-demand electric vehicles.
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In the U.S. alone, more than 60 million people are credit-excluded because they don’t use credit enough or in conventional ways. While traditional credit bureau reports have been the anchor data source for credit risk assessment in the industry for years, they leave gaps in evaluating a customer’s complete financial background and creditworthiness, and limit opportunities for businesses to offer services to large portions of the population. Nova Credit’s Cash Atlas™ bridges this gap by transforming consumer-permissioned bank transaction data into a Fair Credit Reporting Act (FCRA) consumer report, informing businesses’ lending decisions by painting a more holistic view of a customer’s financial health.
Autonomy will embed Cash Atlas™ directly into its application process, giving prospective customers the immediate opportunity to provide additional bank statement data to present a more comprehensive view of their financials and thus increase their chances of approval. With this capability, Autonomy will be able to automate credit risk decisioning based on a customer’s bank transaction data rather than simply relying on traditional credit reports, which glean insights from credit behavior that can be limited and months behind. The partnership allows Autonomy to increase efficiency and reach more customers, without sacrificing payment risk.
“Being able to automate the underwriting decision for customers that don’t have traditional credit histories, yet represent a great customer fit for our product, is the goal of this partnership,” said Scott Painter, founder and CEO of Autonomy. “Implementing Nova Credit’s Cash Atlas™ product will allow us to look beyond the traditional definitions of creditworthiness and help get more customers access to electric vehicles while ensuring that the performance of our subscription fleet remains radically better than traditional auto finance. Empowering customers through financial inclusivity is at the core of our mission and aligns with Nova Credit’s own mission.”
Today, Autonomy offers the Tesla Model 3 and Tesla Model Y and will soon add the full Tesla lineup, among other makes and models. Autonomy’s subscription model offers the cheapest, fastest, and easiest way to get an electric vehicle, and it does not require the long-term debt or commitment that comes with buying or leasing. Autonomy subscribers can pay their subscription entirely on their credit card or through their bank account. They have the flexibility to subscribe month to month after a three-month minimum hold period. Customers can subscribe to an electric vehicle entirely in app (Google Play Store or Apple App Store) and customize their monthly payment to meet their budget. Additionally, Autonomy vehicles are available for delivery or pickup within weeks, compared with the six- to nine-month wait for a loan or lease.
“To date, traditional credit data-based underwriting practices have unintentionally excluded a broad swath of consumers from smart financial options like vehicle subscription services – an important solution for those who want to test the EV waters but might not be ready to commit to purchasing a car,” said Misha Esipov, co-founder and CEO of Nova Credit. “This partnership allows Autonomy to better serve the mainstream and credit-excluded consumers who may not be aware that they are even eligible for these subscriptions. Cash Atlas™ allows users to paint a more complete picture of their financial identity and in doing so allows lenders to make a more fair and informed risk decision.”
ABOUT NOVA CREDIT
Nova Credit is a consumer-permissioned credit bureau with two products that help businesses make more fair and informed decisions on millions of ‘thin file’, no credit history, or new-to-country applicants. The Credit Passport® unlocks cross-border credit bureau data to help businesses underwrite new-to-country newcomer populations. The Cash Atlas™ provides greater insight into the cash flows of any applicant, including verifying their income with greater precision than alternatives. Businesses use these products to approve more applicants without taking on more risk, and consumers are empowered to put their best foot forward in their applications. The company’s differentiated data sources and proprietary analytics are used by leading organizations like American Express, Verizon, HSBC, SoFi, and Yardi. Nova Credit is backed by investors including Kleiner Perkins, General Catalyst, Index Ventures, and Canapi as well as executives from Goldman Sachs, JPMorgan, and Citi. Learn more at www.novacredit.com
Autonomy is a technology company on a mission to make access to mobility easy and affordable through car subscriptions. The company was founded by auto retail, auto finance, and auto insurance disruptors Scott Painter and Georg Bauer, who founded Fair, the first-ever used-vehicle subscription offering, pioneering the Car-as-a-Service (CaaS) category. Building upon that experience, Autonomy has created a turnkey vehicle subscription platform for consumers and the automotive industry that enables vehicle subscriptions to scale profitably and become a mainstream alternative to traditional car buying. Autonomy is innovating through technology, finance, and insurance to power car subscriptions for the battery, electric vehicle, and zero-emissions vehicle sectors. Autonomy relies on partnerships with automakers and brick-and-mortar car dealerships to provide benefits to both consumers and the industry. Autonomy represents freedom from long-term debt, freedom from long-term commitments, and even freedom from fossil fuels. It means new choices and more control over your financial well-being. Autonomy is based in Santa Monica, California.