Cash App Score Opened to External Lenders
Block is making its Cash App Score, a real-time credit assessment tool, available to other lenders through Nova Credit.
Block is now offering its Cash App Score to external lenders. The financial technology firm is partnering with Nova Credit to distribute the real-time credit signal through its Cash Flow Intelligence platform.
Cash App Score analyzes millions of first-party data points from within the Cash App ecosystem. It examines user behavior like spending, saving, repayment patterns, paycheck deposits, and peer-to-peer transactions. This creates a near real-time assessment of an individual's financial health. The score has already started rolling out to Cash App customers.
How the Score Works for Consumers
Users can view their Cash App Score within the app's Money Tab. They are also provided with insights into the factors influencing their score. This allows them to understand what drives their rating and take specific actions to improve it. The system is designed to offer transparency and control over personal financial data.
Integration for External Lenders
Now, through the partnership with Nova Credit, other financial institutions can access this scoring tool. The Cash App Score will be embedded directly into lenders' existing underwriting workflows via Nova Credit's platform. A key feature is that no new consumer credentialing is required for lenders to use it.
Lenders can apply the score across various lending verticals. Block specifies these areas as ones where Cash App itself does not compete.
Executive Perspective on the Move
Juan Hernandez, head of credit and underwriting at Block, explained the rationale. "We built Cash App Score to see the financial activity of millions of people the traditional credit system misses," he said. Hernandez noted the same technology is central to how Block manages credit risk internally.
He emphasized the partnership's goal. "Partnering with Nova Credit lets us put that capability in the hands of lenders through infrastructure they already trust," Hernandez stated. The aim is to reach more consumers responsibly while letting them stay informed and in control of their data.
The move represents a significant expansion for Block's financial data products. By use Nova Credit's established platform, Block can integrate its proprietary scoring model into the broader lending industry without disrupting current processes.
