HSBC UK partners with Nova Credit to offer immigrants access to international credit history

Newcomers to the UK can now leverage their international credit history instantly and free of charge when applying for a credit card with HSBC UK, thanks to a new partnership between the bank and Nova Credit, the world’s only cross-border credit bureau.

The UK immigrant population is one of the fastest-growing demographics in the country. More than 10 million people living in the UK were born overseas and every year more than 800,000 more people are granted long-term visas to work or study in the UK. Currently, 95 per cent of the country’s net population growth comes from immigration, expected to grow to more than 100 per cent by 2025.

Recent research commissioned by Nova Credit reveals the financial challenges of relocating to the UK:

• For two in three (66 per cent) working age immigrants in the UK, receiving credit products took longer than expected due to lack of UK credit history.

• Over half (55 per cent) feel they have been treated differently due to lack of UK credit history, and only one in four (26 per cent) have experienced fully online processes to access credit products and services.

Madhu Kejriwal, head of unsecured lending at HSBC UK said: “Newcomers are vital to the growth of our economy, with the flow of ideas and experiences enriching the lives of people across the UK and around the world.

“But newcomers can face real and unique hurdles when settling into their new lives in the UK from struggling to set up essential services due to lack of local credit history to juggling finances between locations and understanding tax considerations.

“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.”

Collin Galster, head of international at Nova Credit said: “We’re thrilled to expand our global partnership with HSBC. 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.

“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.”

By Mark Adair – Correspondent, Bdaily

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