Product: TomoScore
Company: TomoCredit
TomoCredit, a fintech startup founded by Kristy Kim in 2019 and focused on expanding credit accessibility for millions of Americans, offers solutions that businesses can use to establish credit histories for those individuals who are considered "credit invisible," Kim stated. In keeping with that mission, the company recently launched TomoScore, a cash flow-based credit score designed to mitigate lender risk by identifying high-quality borrowers who have limited or no credit histories.
"Our current credit bureau system is outdated and prescriptive, presenting large hurdles for millions of consumers," Kim said. "I experienced this difficulty firsthand when as an immigrant and a recent college graduate with no credit history."
Kim went on to say that she had to pay cash for a car after facing multiple auto loan rejections. While she was fortunate enough to have the funds to make that purchase, she acknowledged that not everyone is in the same financial situation. This inspired her to create TomoScore, a way to identify high-quality borrowers, including those without a traditional credit score.
TomoCredit representatives affirmed that the company's young immigrant founders had experienced difficulties when applying for credit cards as foreign nationals and resolved to help others by building a credit card that does not require a credit score for approval.
The company further noted that TomoCredit's TomoScore is a well-trained underwriting model that utilizes real-time, cash-flow based performance data as an alternative to traditional credit scores.
By monitoring the cash flow attributes of those considered "credit invisible," including new U.S. citizens, small and midsize business owners, students and other young adults who demonstrate sound financial practices, TomoScore gives lenders a proven method to evaluate and acquire mid- to high-income borrowers while keeping default rates at better-than-industry averages TomoCredit attested.
More than 62 million Americans have thin credit files or no credit history, making it difficult for them to secure loans from lenders, the company said. Lenders historically rely on consumer credit scores from FICO and other credit reporting bureaus to identify eligible candidates.
FICO scores are calculated using a mix of data including payment history, amounts owed, length of credit history, new credit and credit mix obtained strictly from credit files. This traditional method ignores a borrower's real-time cash flow data—meaning that credit-worthy, high-income individuals with no credit score could have their application declined by lenders.
John Suh, TomoCredit board member and business leader, agreed that TomoScore is a timely solution for evaluating real-time cash flow attributes that other credit rating methods frequently overlook. He stated that this unique approach is part of Tomo's B2B expansion that will change traditional lending by providing financial institutions and service providers a new set of products and services.
"The Tomo team understands the 'cash rich, credit poor' customer segment better than anyone else operating in the space," he said. "Despite having a wealth of bank transaction data, this community of upwardly mobile and highly educated individuals has historically been ignored by U.S. financial institutions.
Suh also mentioned that TomoScore is a first-of-its-kind fintech product that offers proprietary performance data and a holistic financial profile of prospective borrowers, which includes on-time bill payments, regular income, monthly rent payments and investments, which allows financial institutions to make credit more accessible to worthy borrowers without added risk.
The company's solutions are backed by top-tier investors, including Morgan Stanley, Mastercard, and Barclays, enabling millions of qualified individuals to access credit, Suh added. 
Website: https://tomocredit.com Contact: help@tomocredit.com
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