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.
New and existing customers applying for an HSBC UK credit card online can choose to share their credit history from a growing list of 12 countries, including Australia, Brazil, Canada, Dominican Republic, India, Kenya, Mexico, Nigeria, Philippines, Spain, Switzerland, and the US.
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% of the country’s net population growth comes from immigration, expected to grow to more than 100% by 2025.
Recent research commissioned by Nova Credit reveals the financial challenges of relocating to the UK:
· For two in three (66%) working-age immigrants in the UK, receiving credit products took longer than expected due to lack of UK credit history.
· Over half (55%) feel they have been treated differently due to lack of UK credit history, and only one in four (26%) 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% 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.”
HSBC UK becomes the second HSBC entity, after HSBC Singapore, to roll out Nova Credit’s technology. In line with its commitment to supporting more new-to-country applicants to gain the credit they need internationally, HSBC’s venture capital division, HSBC Ventures, invested $10 million in Nova Credit in Autumn 2022.
How HSBC UK is helping customers with international needs:
1. Simplified account opening: Open a new account before they arrive in their destination, without visiting a branch.
2. Access credit faster: leverage credit history built up overseas, using Nova Credit’s Nova Passport technology, to start a positive credit history in the UK on arrival.
3. Simplified cross-border banking: View, manage and transfer money between HSBC accounts in 26 markets quickly and with no fees, and send and spend overseas fee-free with Global Money.
4. Plan for the future: Access financial planning tools and portfolio-based advice from experts to help them make the most of their money in the UK and abroad.
5. Global support: Manage their banking needs in different time zones with 24/7 support for key services.
6. More than a bank account: access services with global partners beyond banking (tax solutions, special offers and relocation support including airport pick up as well as a UK SIM card on arrival).
