TomoCredit Company Profile

Background

TomoCredit, founded in 2019 by Kristy Kim, is a fintech company headquartered in San Francisco, California. The company aims to provide credit access to individuals lacking traditional credit histories, such as young adults, immigrants, and international students. By leveraging alternative data sources, TomoCredit seeks to democratize credit and promote financial inclusion.

Key Strategic Focus

TomoCredit's strategic focus centers on:

Alternative Credit Assessment: Utilizing real-time cash flow data instead of traditional FICO scores to evaluate creditworthiness.

Product Offerings: Providing a no-fee, 0% APR credit card that requires no credit check or deposit.

Target Market: Catering to the 40 million credit-invisible individuals in the U.S., including immigrants and young adults.

Financials and Funding

TomoCredit has secured significant funding to support its growth:

Seed Funding (February 2021): Raised $7 million with participation from KB Investment Inc., Barclays, and others.

Series A (September 2021): Secured $10 million led by Kapor Capital and KB Investment Inc.

Series B (July 2022): Obtained $122 million in equity and debt, with investors including Morgan Stanley's Next Level Fund, Mastercard, and Silicon Valley Bank.

The funds are intended to expand product offerings, including auto loans and mortgages, and to hire additional staff.

Technological Platform and Innovation

TomoCredit differentiates itself through:

TomoScore: A proprietary underwriting algorithm that assesses creditworthiness based on real-time cash flow data, analyzing over 50,000 dynamic data attributes.

Open Banking Integration: Partnering with Finicity, a Mastercard company, to securely access applicants' financial data for underwriting purposes.

Leadership Team

Kristy Kim: Founder and CEO. A South Korean immigrant, Kim founded TomoCredit to address the challenges faced by individuals without credit histories.

Joseph Lindsay: Chief Technology Officer. Former Open Banking CTO at Experian, bringing extensive experience in open banking and data initiatives.

John Suh: Executive Director. Former CEO of LegalZoom, recognized for leading high-growth companies and driving substantial revenue growth.

Leadership Changes

In October 2024, TomoCredit appointed Joseph Lindsay as CTO and John Suh as Executive Director to bolster its technological and strategic capabilities.

Competitor Profile

Market Insights and Dynamics

The U.S. credit card market is evolving, with a growing emphasis on financial inclusion and alternative credit assessment methods. Traditional credit scoring models often exclude individuals without established credit histories, creating opportunities for innovative fintech solutions.

Competitor Analysis

Petal: Offers credit cards that assess creditworthiness using cash flow data, targeting individuals with limited credit histories.

Deserve: Provides credit cards to students and professionals without requiring a Social Security number or credit history.

Chime: A neobank offering a secured credit card designed to help users build credit without fees or interest.

Strategic Collaborations and Partnerships

Finicity: Collaborated to leverage open banking technology for secure access to applicants' financial data.

Mastercard: Partnered as the exclusive card network for TomoCredit's offerings.

Operational Insights

TomoCredit's unique approach to credit assessment and its focus on underserved markets position it favorably against competitors. The company's emphasis on no fees and 0% APR appeals to consumers seeking cost-effective credit-building solutions.