Contact
  • HOME
  • / MEDIA /
  • Transforming Access to Credit: A Conversation with Kristy Kim, Founder & CEO of TomoCredit

Awaken* newsletter

December 9, 2024

SHARE:

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

Related Articles

Image Source: houstoniamag.com/SHANNON O’HARA

Stories

From A Struggling Restaurateur To Successful Netflix Chef

The ability to cook does not, however, automatically translate into the capacity to manage a restaurant. The food industry is a fiercely competitive one.

Fortunately for Vietnamese chef Nikki Tran, he succeeded as an “accidental chef” despite his previous failures in the restaurant industry. But what exactly is the secret to his success? 

Nikki launched his first restaurant in Vietnam but was doomed to flop from the beginning because of its quick decline. It started on a drunken night when he drafted his first business plan. He had put down a deposit on a new location that same night, hired a chef, and opened a new restaurant within a week. 

The only problem was that the chef didn’t show up which caused trouble on the first day it was open. The restaurant also struggled to bring in customers despite the backing of Nikki’s famous actress friend, which resulted in a steady loss of revenue. 

Nikki recognized his missteps and realized he was not as well prepared as he thought. Consequently, he worked to improve and reinvent his culinary skills. It did not end up being a challenge for him; instead, he worked toward opening a second restaurant in Houston, Texas, when he returned to the United States. 

At that time, he got hooked on crawfish and began eating them frequently. He took it to Vietnam and experimented with it using a typical technique of its culture. His family, friends, and the first people in Vietnam are thrilled to try it out, and they’ve called it “Viet-Texan cuisine.”

This innovation, which was his take on the now-classic Viet-Cajun crawfish boil made using Vietnamese river prawns, became the one that accidentally brought and pushed him into the international limelight.

Soon, he was profiled by media outlets such as Vice, NBC’s Travel Voyager, Houston Eater, and Netflix. He did not let his first failure or lack of experience prevent him from pursuing his dreams and developing relationships until he became a Netflix star. He is also a familiar face in David Chang’s Ugly Delicious, Phil Rosenthal’s Somebody Feed Phil, and the critically acclaimed Street Food: Asia.

Today, Nikki operates three locations of his restaurant, known as “Ku Ba Quán.” And even though he is known for breaking the rules of traditional Vietnamese cuisine and blending in international influences whenever he feels it is appropriate, he has the impression that he has always gone his own way.

  • 3 min read
Image Source: tribune.com.pk

News

Wu Makes Historic Singles Match Grand Slam Win For China In 63 Years

Wu Yibing became the first male tennis player from China in 63 years to win a Grand Slam tennis match with a victory in this year’s US Open beating Nikoloz Basilashvili 6-3 6-4 6-0 in the first round.

The 22-year-old didn’t compete from March 2019 to January 2022 owing to elbow, back, shoulder, and wrist injuries, with elbow surgery being the most significant. But Wu didn’t want to use his injuries as an excuse.

“I don’t really like to talk about those injuries in too (much) detail because every player has injuries,” Wu had told the ATP website, “The mental strength that you have to go through the pain is part of the game,” he added.

Wu’s compatriot Zhang Zhizhen nearly joined him in the second round, but Tim van Rijthoven saved seven match points in the third set to win 3-6 6-7(4) 7-6(9) 6-1 6-4.

But Wu hopes they can both raise China’s flag, “We are both pushing Chinese men’s tennis levels and we’re still young… I think we’re going to get to the Top 100,” 

As of this writing, Wu is ranked 173rd in the world for men’s singles. However, he hopes to move up the ranks when the 2022 U.S.

  • 1 min read
Image Source: Pesconex Facebook, Latest Chika

News, Stories

Young Siblings’ Pest Control Startup Skyrocketed In Two Months After Their Tiktok Video Went Viral

In just two months, these two siblings launched a pest control business that now serves a wide area around Quezon Province and nearby cities in the Philippines. They are like any other young adult with unfortunate life prospects, but they’ve persevered because they know there must be a better way. 

Pesconex Pest Control Services is owned jointly by its co-founders, Clark Dennies and Clarissa Joyce Demejes. They started their team with their cousin, who has grown to include four more members. 

What began as a training ground provided by their uncle is now a well-recognized business offering services with a quick phone call around Quezon Province and even reached the island of Palawan. 

Their uncle quickly loaned them money to help them start their own business. The effective pest control technique they use is a standardized process and is a convenient way to get rid of pests. They also made sure it is safe and environmentally friendly.

Within the first month, they serviced only a handful of clients, including a few homes, small sari-sari stores, and some bakeries — their parents even drove them to their clients. Nowadays, certain large companies and grocery stores are among the few that hire the team. 

Their success and customer acquisition began when Clarisse posted a TikTok video demonstrating the service they are providing. Many netizens have praised what the two have been doing, and some are so impressed that they would like to utilize their services. 

In just two short months, the siblings have established themselves financially and have also acquired their company car with their first significant earnings successfully.

Instead of focusing on the possibility that the endeavor will be unsuccessful, Clarissa encourages taking the risk. “Manifest that your business will be successful, do your best to succeed.” — she added. 

  • 2 min read
Image Source lawmagazine.bc.edu

Stories

Asian-American Woman in Law On Finding Her Voice That Lead To Her Success In The Courtroom

When looking at an Asian-American woman, certain implicit biases exist. They are often judged as being too meek, timid, or passive to achieve their goals. They may be held back by such an evaluation, preventing them from realizing their full potential.

It was difficult for Asian-American lawyer Debra Wong Yang to speak up throughout her early career. In the long run, she realized that her inability to stand up for herself did not only hurt her but also her clients.

“Eventually, we all find a voice — my advice is to just make sure the one you ultimately adopt is actually yours,” she advised in her essay published by Law360.

Yang graduated from law school in 1985 when women were still relatively powerless in the legal field. Since she was still working toward the goal of following the path she had chosen, she has faced many challenges along her journey. She has witnessed it all, from the very traditional Chinese upbringing she received to the various sacrifices, frustrations, and challenges she must face on a day-to-day basis in her chosen field.

After years of practicing law and facing challenges in the courtroom, she came to a number of important realizations that helped her become a successful attorney. She remembered when she thought up some strategies that she hoped would assist her in communicating effectively with others. 

Yang also tried to conquer her fear, and her motivation helped her cope with the situation and make further progress. With a lot of the many books she has read on leadership, she knows she has finally found her own approach to developing herself. 

She aspires on detailing how she was preparing for her court session with an outline of her questions and concerns, and other litigants will be able to better manage their time with counsel. She realized she was getting better at defending her clients in court because she was able to keep her attention solely on the issues and evidence in her case.

When she was currently going through a period of learning and challenges, she learned that holding a position of authority does not guarantee respect from subordinates. She came to understand that one of the responsibilities of a leader is to address concerns raised by those who doubt one’s abilities.

In her courtroom sessions, Yang strongly suggests analyzing the situation first and looking for authentic solutions carefully. She strongly believed that the solutions to some problems sometimes are not immediately obvious and have never been tried before, or that it’s extremely straightforward. However, she is challenged to keep turning the issue over and over in her mind until she begins to see it from a new perspective.

Yang also stressed the importance of having mentors to turn to for advice and insight. She was assertive in her belief that one should be guided by the process of sitting down, thinking it through, and acting in a way that is most beneficial to them. She went on to say that if the message comes from within, the receiver will perceive it as more genuine and at ease.

In 2002, She was appointed by President George W. Bush as United States Attorney and became a former judge serving the Los Angeles County Superior Court. The fact that her success can be attributed to her strong leadership and the bravery that she possesses as an individual is a reason why she wields her power. 

Not only does Yang share her own experiences, but she also provides valuable advice that other women can use to advance their careers. She stated, “My wish for each of you is that you will be brave when facing self-doubts, challenges, and obstacles. That you will dig deep, reach out if needed, do the research, make the tough decision and not be afraid of losing.”

The fact that Yang, an Asian American woman-in-law, was able to take control of her power demonstrates that one’s race should not determine the opportunities available to them or the path they choose to take in their professional advancement. However, by maintaining a positive attitude and giving oneself the power to make decisions, one will be able to live up to the standards and goals that have been established to assist in one’s own success.

  • 4 min read