How TomoCredit Empowers Immigrants with No Credit Score

What inspired Kristy Kim to start TomoCredit?

Kristy Kim's journey as an immigrant in the U.S. was fraught with challenges, especially when it came to credit approval. Despite her academic and professional credentials, she repeatedly faced rejections for basic financial services like credit cards, auto loans, and even apartment rentals due to her lack of a credit score.

This series of rejections reached a tipping point when she was denied a job offer from Goldman Sachs because they decided not to offer visas for the incoming class. These experiences fueled a sense of frustration and rejection, prompting her to take action.

Kristy Kim's personal struggles and the shared experiences of her friends became the catalyst for founding TomoCredit. Her mission was clear: to build a credit solution that would enable immigrants and international students to secure the financial services they need without a credit score. This vision turned her feelings of exclusion into a powerful driver for change, ultimately leading to the creation of TomoCredit.

How does TomoCredit work for users without a credit score?

TomoCredit offers a unique solution for credit approval for immigrants and international students.

Unlike traditional banks, TomoCredit does not rely on FICO scores. Instead, it uses bank account data to assess creditworthiness.

Steps to Get Approved by TomoCredit

1. Connect Your Bank Accounts

   Users can link multiple bank accounts, including checking, savings, and even brokerage accounts like Robinhood or Charles Schwab.

2. Tomo Score Calculation

   The proprietary Tomo score evaluates:

   • Income levels
   • Spending habits
   • Disposable income

3. Approval Process

   Based on the Tomo score, users can get approved for credit, regardless of their existing FICO score.

Key Features

• No Credit Score Needed: Users are approved based on their financial activities.
• Comprehensive Data Analysis: The algorithm evaluates multiple financial indicators for a holistic view.
• Inclusive Target Audience: Offers credit solutions to immigrants, international students, and even Americans with no credit score.

By focusing on transactional and bank account data, TomoCredit bridges the gap and provides essential credit services to those without a traditional credit history.

What makes TomoCredit different from traditional banks?

TomoCredit sets itself apart from traditional banks by offering unique solutions tailored specifically for immigrants and international students.

Key Differences:

• No Credit Score Needed:

  • Unlike traditional banks, TomoCredit does not rely on FICO scores for credit approval.
  • Users are evaluated based on their financial activities and bank account data.

• Innovative Use of Data:

  • TomoCredit employs its proprietary algorithm, the Tomo score, which analyzes multiple financial indicators.
  • The evaluation includes income levels, spending habits, and disposable income.

• Inclusive Approach:

  • TomoCredit targets legal immigrants, international students, and Americans without a credit score.
  • This inclusive target audience cannot usually access credit from traditional banks.

• First-Mover Advantage:

  • Traditional banks are often hesitant to approve users without a credit history.
  • TomoCredit takes the first step by providing a viable alternative for this underrepresented group.

By leveraging modern data analytics and focusing on underserved demographics, TomoCredit offers a revolutionary approach compared to conventional banking practices.

What challenges did TomoCredit face in its early stages?

Kristy Kim faced multiple challenges when starting TomoCredit.

First, she had no background in consumer banking. This meant she needed to quickly learn about credit systems and build industry relationships.

• Initial steps involved meeting with professionals from Wells Fargo, American Express, and Barclays.*

Secondly, securing financial backing was a significant hurdle. Banks were initially reluctant to invest in a startup without proven success.

Securing the investment from Barclays marked a turning point.

Lastly, technical challenges were immense. Building a new credit scoring system and ensuring it worked reliably required hiring skilled engineers and developing robust algorithms.

Despite these hurdles, these efforts laid the groundwork for TomoCredit’s unique approach to credit approval for immigrants.

How has TomoCredit grown since its launch?

TomoCredit has experienced remarkable growth since its inception.

Customer Acquisition:

• Day one saw over 10,000 sign-ups without any paid marketing.
• As of now, TomoCredit boasts close to 4 million customers in the U.S.

Investment Milestones:

• The company secured significant investment from Barclays UK Bank in its early stages.
• This funding helped TomoCredit to grow rapidly, including a 400% increase during the COVID-19 pandemic.

Expansion Plans:

• TomoCredit aims for another 200% growth this year.
• The company is actively looking to scale up by hiring more personnel to support its expanding customer base.

By focusing on credit approval for immigrants and leveraging innovative data solutions, TomoCredit continues to expand its footprint in the fintech industry.

What future goals does Kristy Kim have for TomoCredit?

Kristy Kim envisions TomoCredit as a beacon of support for immigrants and international students in the U.S.

Her primary goal is to make TomoCredit a go-to brand for financial services tailored to this community.

Long-Term Vision:

• Empowering Immigrants: Kristy wants TomoCredit to empower immigrants in achieving their ambitious goals.
• Comprehensive Services: She aims to expand beyond credit cards to include auto loans and mortgage approvals.
• Brand Trust: Building a brand that immigrants trust and rely on for various aspects of their financial journey.

In essence, Kristy aims to alleviate financial hurdles for future generations of international students, ensuring they don't face the struggles she did. Through TomoCredit, she hopes to create a brighter, more inclusive financial future for all immigrants.