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Awaken* newsletter

December 9, 2024

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In this month’s edition of the Awaken* Newsletter, we speak with Kristy Kim, Founder and CEO of TomoCredit, a fintech startup focused on improving access to credit for underserved consumers. By using AI to evaluate real-time cash flow data rather than traditional credit scores, TomoCredit connects consumers with lenders.

Kristy discusses her journey as an immigrant, an Asian female founder, and an entrepreneur working to transform the financial industry. Through her leadership, TomoCredit aims to provide more people with better access to capital and lending opportunities.

Can you start by giving us an overview of your company and what you’re trying to solve?

Kristy Kim: Sure! At TomoCredit, our mission is to bridge the gap between underserved consumers and lenders using AI technology. We are focused on serving individuals who have been left behind by traditional financial systems, especially those without credit scores or with limited credit history.

There are millions of people in the U.S. who are underbanked, and the financial institutions that could potentially help them either don’t have access to their data or don’t understand their risk profile. We leverage AI to evaluate consumers based on their cash flow instead of relying solely on traditional credit scores. This enables us to match these individuals with lenders who are willing to serve them without taking on additional risk. Our platform helps both consumers and lenders—consumers get access to capital, and lenders expand their market in a low-risk way.

What motivated you to start TomoCredit?

As a first-generation immigrant from South Korea, I moved to the U.S. at eleven. In my early twenties, I faced the challenges of building my own credit history. After graduating from UC Berkeley, I worked in investment banking.

Despite having a stable income, I was denied an auto loan five times because I lacked a credit score. This experience highlighted a significant gap in the financial system, where many immigrants, young adults and many other underserved communities are excluded due to the absence of a credit history. After being turned down multiple times, I knew something had to change. I saw that the traditional credit system wasn’t serving millions of people, particularly immigrants, who had the ability to repay but lacked a credit history to prove it.

That experience of being excluded from the financial system really motivated me to find a way to help people like myself access the credit they needed. Determined to address this issue, I founded TomoCredit to provide credit solutions for those who, like me, struggle to access traditional credit avenues.

I wanted to create a system that didn’t rely on traditional credit scores but instead used alternative data, like cash flow, to assess creditworthiness. The idea was to connect underserved consumers to lenders in a way that wouldn’t increase their risk. TomoCredit was born out of this desire to make the financial system more inclusive—so others wouldn’t face the same rejections I did, and would have the chance to access capital and thrive.

As an immigrant founder, have you faced any challenges or biases in fundraising or building relationships with big institutions?

Kristy Kim: Yes, there are definitely challenges that come with being an immigrant founder, and at times, it can feel like an uphill battle. But, interestingly, my background has also played to my advantage.

As an immigrant, I have a unique lens on the problems facing underserved communities. I know firsthand what it’s like to struggle with the traditional credit system. I’ve faced the same barriers that many of our customers face, and that gives me an edge when I’m speaking to financial institutions. I’m able to say, “Look, I know my customers better than anyone else. These people are creditworthy, but they’re being overlooked by the traditional system.”

There is some bias, of course, especially when you’re dealing with legacy institutions, but I think they also recognize that I bring something different to the table—an intimate understanding of the market and the customers they often don’t have access to. Lenders are willing to listen because they know that by partnering with us, they can expand their pool of potential customers without taking on additional risk.

You’ve been in this industry for over five years now. What keeps you motivated despite the challenges you’ve faced?

Kristy Kim: That’s a great question. Honestly, the progress we’ve made keeps me motivated. Every year, I see the interest in our approach growing, and it reinforces that we’re heading in the right direction.

When we first started, it felt like I was an outsider trying to convince traditional financial institutions to embrace an entirely new way of evaluating credit. But now, year after year, we see more and more mainstream players realizing that there’s a huge market for underserved consumers—and that these consumers are creditworthy if we just use the right tools to understand them. It’s exciting to be at the forefront of this change.

For me, it’s not just about building a business—it’s about creating lasting impact. The U.S. consumer credit industry is worth over $4 trillion, and the fact that we are focusing on a largely ignored segment of that market feels like we’re making a real difference. And, of course, as a founder, seeing our technology evolve and improve with time and data is incredibly motivating.

How does your solution differ from other competitors in the market who are also targeting underserved consumers?

Kristy Kim: The key differentiator is that we don’t just rely on traditional credit scores to assess risk.

Our AI model is powered by cash flow data—essentially, we evaluate consumers based on their spending and income patterns, which gives a far more accurate picture of their financial health. Over the past five years, we’ve accumulated a wealth of data that allows us to refine our model, and with every new data point, we get better at underwriting.

Unlike competitors who may be using generic data or building from scratch, we have a more granular understanding of how underserved consumers behave financially. Additionally, the beauty of our system is that we’re not just looking at data from one financial institution—we’re aggregating data from multiple sources. Our customers might have accounts with multiple banks, and that gives us a fuller picture of their financial habits. In comparison, other companies might only have access to data from one bank, which limits their ability to assess risk accurately.

As a founder, what has been the most rewarding part of your journey so far, and what has been the hardest?

Kristy Kim: The most rewarding part has been seeing the validation from both the industry and our customers. When leaders of financial institutions tell me that TomoCredit makes sense, it’s incredibly validating. It’s a feeling of affirmation that, yes, we’re on the right path. But it’s also rewarding to see the real-world impact we’re having on people’s lives. We’ve helped thousands of people access capital who otherwise wouldn’t have had the chance.

On the flip side, the hardest part has been dealing with the mental burden of being a startup founder. When things are going well, it feels like everything is moving at full speed, but when challenges arise—whether it’s fundraising hurdles, market uncertainty, or hiring struggles—the pressure is immense. Unlike larger companies with more resources, startups have less margin for error. It can feel like one wrong move could jeopardize everything, and that can be emotionally exhausting. But it’s in those moments that you really find your resilience, and you learn that, no matter how tough it gets, you have to push forward.

As a seasoned founder, what key lessons from your previous startup experience have you applied to building TomoCredit?

When I launched my first company, I was in my early twenties, full of energy but lacking experience. It was a trial-and-error journey, where I learned a lot, but I quickly realized that having a clear vision and understanding the real impact you want to make is crucial.

Starting TomoCredit was a completely different experience. This time, I approached it with a clear strategy, having learned the importance of tackling a problem that I was personally passionate about. My previous startup experience taught me how to make more strategic decisions, prioritize what matters most, and stay resilient through the inevitable ups and downs of entrepreneurship.

What advice would you give to aspiring founders, particularly those who may be feeling discouraged after a tough year?

Kristy Kim: My advice would be to stay grounded in your purpose and conviction. It’s easy to get distracted by the ups and downs of the startup world, but at the end of the day, your mission should drive you more than the fear of failure or the setbacks you face along the way.

When I first started my company, it wasn’t about just building a business—it was about solving a real problem that I deeply cared about. The passion for the idea needs to be stronger than the fear of failure. Even if things don’t work out the way you hope, you can still be proud knowing that you tried to create something that could have made a real impact.

The most successful founders I know are the ones who are able to maintain a strong sense of purpose, even when it feels like everything is falling apart. If you believe in what you’re doing and are committed to the long-term vision, that will carry you through the hard times.

What are some recent key achievements or milestones that you’re excited to share?

Kristy Kim: Thanks for asking. First, our AI-driven platform continues to help underserved consumers access credit by using cash flow data to connect them with lenders.

We’ve also made significant strides in improving our underwriting capabilities by leveraging years of data to assess creditworthiness more accurately. This year, we paused issuing new credit cards to focus on refining our AI and underwriting technology. While we haven’t issued new cards yet, we’re still accepting customers and offering other financial services. Additionally, our partnerships with larger financial institutions are also growing, with increasing interest from major players. These collaborations are essential to our mission of expanding access to lending for underserved communities.

And lastly, on the team front, we’ve made several key hires, including the former CTO at Experian and the former CEO of LegalZoom. Their expertise in open banking and scaling high-growth companies will help us continue to expand our offerings and further our mission.

Looking ahead, what’s next for TomoCredit?

Kristy Kim: We’re expanding our offering, bringing more lenders into the network, and continuing to refine our AI technology to provide better risk assessments.

We’ve been growing the B2B side of our business over the last year, and we’re seeing significant interest from bigger players in the financial sector. We’re also planning to expand our product offerings to include more types of loans, like auto loans and mortgages, to help more customers get the access they need.

We’re also actively hiring, which is very exciting for us. We’re looking for a talented marketing person to help us build our brand and spread the word about what we’re doing. Our mission is to make financial access easier for everyone, and we’re excited to continue growing and impacting even more lives.

Kristy Kim’s journey proves that determination, a clear vision, and a deep understanding of your market can break through even the toughest barriers. At TomoCredit, she’s not just building a company; she’s seeking to reshape how credit is accessed, especially for those often left behind by traditional systems. Stay tuned for more updates on TomoCredit’s journey, and learn how they’re challenging the status quo while creating new opportunities for underserved communities.

Author: Donna Yu

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Garry Tan

Awaken* newsletter

Garry Tan on Startups, Advocacy, and Overcoming Cultural Mindsets

Few people in Silicon Valley are as high-profile as Y Combinator’s President and CEO, Garry Tan. Garry has worn many different hats over his illustrious career. In addition to leading the world’s most successful startup accelerator, Garry was the 10th employee at Palantir, co-founded Posterous (one of the earliest blogging sites), founded Initialized Capital (a VC fund with over $3.2B AUM), and has even ventured into the world of politics, becoming a prominent activist in San Francisco local politics. I got the chance to pick Garry’s brain about how being Asian has affected his life, and I hope that his answers can help and inspire our readers. Without further ado:

OVERCOMING DETRIMENTAL MINDSETS

My experience is that children of working class parents (especially Asian immigrants) tend to have a sticky mindset of scarcity–even when they improve their socioeconomic status. Garry has previously talked about his “$200 million mistake”. That is–he declined Peter Thiel’s offer to be a founding member at Palantir. To me, this seemed like a manifestation of this mindset, so I asked Garry how he overcame it:

I was able to realize that these things were two-way doors. Quitting a big tech company on good terms actually means you can go back anytime. There are one-way doors and two-way doors. For people who grow up with our upbringing, everything feels like a one-way door. But if you can recognize when that is wrong, then you have reclaimed some of the privileges those who come from money have by default.

The one-way vs two-way door framework is something Amazon founder Jeff Bezos has talked about extensively. You can hear him go more in depth here.

The stigma around mental health in the Asian community is another mindset that is gaining more attention. Personally, because my immigrant parents had to fight tooth and nail for survival, I don’t feel that I have the right to complain about my mental health since my life is comparatively easy. I asked Garry if this resonated with him and how he overcame this mental block:

I pretended I didn’t have any problems and spent a lot of time just trying to blend in, but in the end things about my childhood or unusual trauma-based reactions would pop up in my professional life. At some point I started going to therapy individually and it helped me immensely. All these things I didn’t have control over suddenly became something I could integrate and be aware of, and make better choices about. Carl Jung says if you don’t make the unconscious conscious, it will rule you, and you will call it fate. 

A third common mindset I see among Asian Americans is to keep their heads down and avoid rocking the boat, even if it means holding in their thoughts. Given that Garry is a very outspoken person, I asked him how he developed his confidence:

I remember in high school, I was editor of the school newspaper and noticed that students in our poorer high school got much more harsh sentences and expulsions for the same infractions that would get a slap on the wrist at the rich school. I was so angry about it, and I wrote an article exposing it but that was censored by my high school newspaper teacher. I was already going to graduate and go to Stanford so I let it slide, but deep inside me there was an anger at being silenced that I never forgot. Before newspaper, I would publish underground newspapers using Pagemaker and my English teacher would photocopy the newspapers for the class – it gave me a power I never forgot because otherwise I was the scrawny Asian nerd in the corner, but when I could channel the words of my community it gave me standing. I never forgot that.

ON ASIAN COMMUNITIES

On the topic of communities, I asked Garry about what motivated him to become a fierce advocate for the Asian community:

I feel strong solidarity with my Asian American community in San Francisco. We are a major part of the city but we are not seen. We are not heard. The local leaders would even denigrate our attempts at securing safety for our Asian American elders. Now I know I need to fight for those who don’t have a voice. One of the coolest things I found was a nonprofit called Dear Community that connects Asian Americans new to SF, often young professionals, to each other and to the existing SF Chinatown communities. It’s amazing to see smart driven people come together around that, and fight for our people in this city.

I also pointed out how he recently went to Singapore to attend a startup event called SWITCH, and asked him how he felt about the startup scenes popping up in Asian countries:

Startups are happening all around the world. You can learn from YouTube and the web. YC alums are everywhere in the world. I’m excited to see that what started in the Bay Area is now a global phenomenon and only growing.

THE ASIAN FOUNDER EXPERIENCE

On a friend’s recommendation, I asked Garry “Who are some non-technical Asian founder role models I might want to look towards? In terms of working at an early stage startup as a non-technical employee, what are the most valuable skills to learn?” Garry’s response kind of challenged the premise of my question:

In startups and in technology, being technical is a key strength. Be technical if you can be. And then be a polymath: it’s far easier for a technical person to pick up the soft skills than the other way around. 

In hindsight, I will admit that it seems silly to expect to get an outlier outcome (in the positive direction) in the tech industry if you aren’t willing to put in the effort to become technical. He got me on that one.

Lastly, I asked Garry the same question I ask all our guests–how does he think about his Asian-ness in the context of being a founder:

I didn’t think about it until much later. Frankly I tried to pretend it wasn’t an issue, even though there was absolutely a bamboo ceiling even for me. I was passed over for promotions and/or people didn’t think I was capable of doing what I have done. I would rage-quit jobs and it would work out, but I could see it going a different way. As a founder, I found that I needed to up-level my ability to speak up and speak out, and especially be as assertive as possible when I knew I was absolutely right. I had an unspoken desire that I was not even aware of for harmony, and without being aware of it I would sometimes self-abandon, and then be passive aggressive about it later. I don’t do that anymore, and it was a key step in my development as a leader. I wish I developed it earlier, and it was all because of unconscious programming from my childhood. 

The biggest lesson I took away from this interview was how the infallible and outspoken Garry Tan was not always so, and that at one point he was very much like the stereotypical Asian kid. Garry’s story proves that with self-awareness and determination, anybody can undergo tremendous growth and become an industry leader.

SHOUTOUTS

If you have an ambitious startup idea and want to be part of an amazing community of founders, apply to Y Combinator! Y Combinator runs batches twice a year–in the winter and summer. Applications for the summer 2024 batch are open, you can apply at https://www.ycombinator.com/apply

Thank you Garry for the interview!

Featured Image Source: Y Combinator

  • 7 min read
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Stories

Former Teacher Launches Very First Asian Heritage Magnetic Dress-Up Dolls

Dolls have been with us for many centuries now, evolving from wooden dolls, clay dolls, and paper dolls, to plastic dolls, but the message that they send us has always been the same. They are often imbued with symbolism about what is acceptable and desirable in our society.

For children, dolls can mean a lot of different things, but most importantly, dolls can help them build their creativity, imagination, individuality, and even self-esteem. For this reason, Eunice Chen launched the World’s Very First Asian Heritage Wooden Magnetic Dress-Up Dolls.

Read through as we learn more about the journey that led Eunice to create Stay Curious Toys, all of which she shared through an exclusive interview with Asian Hustle Network.

THE CREATION OF STAY CURIOUS DOLLS

When Eunice first embarked on her project of designing an Asian princess and giving her many traditional Asian clothing, it was purely for her own enjoyment and fulfillment of one of her childhood wishes. She wanted to share her designs as a free resource to the Asian community, so she created paper doll versions and posted them online.

“I wasn’t expecting much response, but it BLEW UP!” Eunice said. She got thousands of likes and hundreds of comments from people thanking her and asking her to turn it into a real toy product.

Months passed and people were still asking her to make the dolls into a wooden toy. She did not know where to begin and literally just Googled and researched online. Somehow, she stumbled across a factory that she (later on) discovered also makes wooden toys for big brand names such as Disney, Fisher-Price, and Melissa and Doug! One thing led to another, and now she owns her own toy company called Stay Curious Toys, with her first products being magnetic dress-up dolls. 

PIVOTING FROM BEING AN ELEMENTARY TEACHER TO A FULL-TIME DESIGNER

Before becoming a designer, Eunice was an elementary school teacher. In December 2020, she decided to do a complete career pivot to become a designer, and had a dream of working as a designer in the animation industry. Growing up though, Eunice also wanted to become a fashion designer.

Little did she know that all of her dreams would come true, and that she would have the opportunity and enjoy designing her own toys and their clothes too.

Despite having no formal education in art and no connections in the art industry, Eunice worked hard, took art classes and learned to ask for help. She is now working as a full time designer on a Disney TV show, has illustrated four books, and designed toys.

OVERCOMING CHALLENGES

Just like everyone, Eunice faced some challenges along the way, one of which was fear of failure, and a lot of self-doubt.

“I still don’t know the best way to deal with it and I haven’t overcome it, but I just continue to push through. I know that if I take small steps towards my goal or dreams daily, then one day I will get to the destination,” she said.

CULTURAL ROOTS AND MODERN FLAIR

Eunice’s multicultural upbringing in Canada/US and Taiwan plays a significant role in shaping her dolls. Infusing Eastern and Western influences, she creates designs that celebrate Asian heritage while offering a modern and fresh perspective.

In Taiwan, Eunice had a lot of Asian role models to look up to and instill within her a lot of pride in her identity. It showed her more diversity in the types of careers and interests an Asian person could pursue.

In the US/Canada, Eunice experienced what a lot of Asian Americans go through, how they always feel like an outsider and constantly having to be perfect or prove themselves. But she also witnessed the grit behind every immigrant and stories of their families.

However, in both places, she hadn’t seen Asian dolls that truly represented the richness and diversity of Asian Culture. And in some way, her creation is something that she wished she had when she was a girl.

WORKING ON A DISNEY TV SHOW

“I knew I had limited time and a lot of catching up to do, and since I was starting from the very bottom, I had no ego (or no shame). So I just kept putting myself out there and tried to learn from everyone and everything. I also developed thick skin and learned to take rejection lightly. Eventually, after countless applications, I got an art test for Pupstruction to design a bus for the show. They liked my design and hired me!” Eunice shared.

Eunice uses the same lessons she learned from landing her Disney job now with Stay Curious Toys: “keep a clear goal, continue to learn, don’t let rejections or setbacks deter you from your goal, and make friends!”

LIFE-ALTERING PERSPECTIVE

A near-death experience shaped Eunice’s outlook on life. 

“It made me realize that life was too short to be lived for other people’s approval. And so I started making choices for myself…and through that process, I discovered that when I was making things that I truly enjoyed, it resonated with people and people responded,” she shared.

ADVICE FROM EUNICE

For those who want to pivot their career – “Be clear in what you want–even if you can’t see the final, ultimate goal, you have to know and believe what your next steps are. And in any change, risk is involved, so you have to know when to take that risk/jump. It is also important to filter out the noise/feedback you get from your friends and family–listen to them and then make your own assessment with the information you got from them. Each person and situation is different, so I am only sharing what has worked for me. But ultimately, the most important thing is to make or do what you love, and not what others want you to do.”

For those who want to pursue a career in art – “Make sure you develop a strong set of foundational art skills and learn those from good artists and references. Think about which field in the art industry you’d like to be in and curate your art portfolio to match the type of job you’d like. Stay humble and hungry, and surround yourself with peers and mentors by reaching out to them and asking questions. Keep putting yourself and your art out there, and know that even the best artists experience imposter syndrome.”

CONNECT WITH EUNICE CHEN / STAY CURIOUS TOYS

IG: @eunicesketches / @staycurioustoys

Website: eunicesketches.com / staycurioustoys.com

*Pre-order at staycurioustoys.com, starting February 1, 2024. The first 100 customers will receive an exclusive tote bag designed by Eunice.

  • 6 min read

News

Three Business Heirs in Asia Pave the Way for Socially Conscious Investments

Across Asia, a new wave of second- and third-generation business heirs is redirecting family enterprises toward sustainable investments, challenging traditional profit-centric businesses.

Komal Sahu, Chief of Sustainable Finance at AVPN, the largest network of social investors in Asia, notes that younger generations are recognizing their family’s wealth as a catalyst for positive transformation. By integrating environmental, social, and governance factors into their investments, these heirs aim to drive positive change while maintaining financial viability.

Al Jazeera has shared three business heirs across Asia that exemplifies this:

In Malaysia, 27-year-old Abe Lim, an heir to a lubricant and cleaning products business, departed from her father’s profit-focused approach, despite being groomed to take over the company. Instead, she founded Purpose Plastic, successfully transforming discarded plastic into home decor and other products while emphasizing sustainability.

Image Source: Al Jazeera / Abe Lim

In some cases, the older generation encourages innovative thinking to secure the ongoing success of their businesses. The Lopez family in the Philippines, known for success in telecommunications and energy, divested from coal in 2016 to focus on renewable energy. Marianna Lopez Vargas, partnerships manager at the Oscar M Lopez Center, believes that a complete transition to renewables is achievable with the right incentives.

Singapore-based Fernando Scodro, responsible for his family office’s investment strategy, is educating his family about socially conscious investing, which leads to impactful investments like COGNI, a Brazilian startup focused on energy efficiency.

As these Asian business heirs redefine success, their commitment to sustainable investments signals a profound shift toward a more socially and environmentally conscious business landscape.

Featured Image Sources: Al Jazeera, Esquire PH, X

  • 2 min read
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News

A Teacher and Basketball Coach’s Path to a Six-Figure Income in Orange County

Meet Jae Byun, a math teacher and basketball coach in Orange County, California, who’s making a six-figure salary doing what he loves.

Originally majoring in business economics at the University of California, Irvine, Jae initially set his sights on a financial industry career. However, after completing internships in that field, he felt a desire for something different.

During his senior year in 2013, he accepted a coaching position at his former high school in Orange County, guided by the stability and income potential his coaches emphasized in the teaching profession.

“It wasn’t going to make me a millionaire, but it was going to allow me to have time and freedom. That really appealed to me,” he said to CNBC.

Born in South Korea, Jae moved to California at a young age and grew up valuing hard work, learning from his truck driver father and spa worker mother. His parents were concerned about him at first and disappointed that he took a career in education, but eventually, they came around with the fact and loved that Jae now lives with them. Jae is paying them $800 for rent and helping with household expenses, even though they told him that he didn’t need to.

Image Source: CNBC

It took Jae about six years to reach his current salary of nearly $115,000, including coaching stipends and summer programs. He actively manages his money, saving half of his monthly income and investing in retirement accounts. Even with some unexpected expenses, Jae remains committed to financial stability.

Looking ahead, Jae plans to generate extra income and ensure a comfortable retirement for his parents.

Featured Image Source: CNBC

  • 2 min read