Page 30 - GS240601

NewProduct

Expand reach, qualify customers

with alternative credit tool

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 re-
porting bureaus to identify eligible candidates.

FICO scores are calculated using a mix of data including
omoCredit, a fintech startup founded by Kristy payment history, amounts owed, length of credit history,
Kim in 2019 and focused on expanding credit new credit and credit mix obtained strictly from credit files.
accessibility for millions of Americans, offers This traditional method ignores a borrower's real-time cash
T solutions that businesses can use to establish flow data—meaning that credit-worthy, high-income indi-
credit histories for those individuals who are considered viduals with no credit score could have their application
"credit invisible," Kim stated. In keeping with that mis- declined by lenders.
sion, the company recently launched TomoScore, a cash Real-time data, strong support
flow-based credit score designed to mitigate lender risk by
identifying high-quality borrowers who have limited or no John Suh, TomoCredit board member and business leader,
credit histories. agreed that TomoScore is a timely solution for evaluat-
ing real-time cash flow attributes that other credit rating
"Our current credit bureau system is outdated and prescrip- methods frequently overlook. He stated that this unique
tive, presenting large hurdles for millions of consumers," Kim approach is part of Tomo's B2B expansion that will change
said. "I experienced this difficulty firsthand when as an im- traditional lending by providing financial institutions and
migrant and a recent college graduate with no credit history." service providers a new set of products and services.

Kim went on to say that she had to pay cash for a car after "The Tomo team understands the 'cash rich, credit poor'
facing multiple auto loan rejections. While she was fortu- customer segment better than anyone else operating in the
nate enough to have the funds to make that purchase, she space," he said. "Despite having a wealth of bank transac-
acknowledged that not everyone is in the same financial tion data, this community of upwardly mobile and highly
situation. This inspired her to create TomoScore, a way to educated individuals has historically been ignored by U.S.
identify high-quality borrowers, including those without a financial institutions.
traditional credit score.
Suh also mentioned that TomoScore is a first-of-its-kind fin-
Expand reach to qualified customers tech product that offers proprietary performance data and

TomoCredit representatives affirmed that the company's a holistic financial profile of prospective borrowers, which
young immigrant founders had experienced difficulties includes on-time bill payments, regular income, monthly
when applying for credit cards as foreign nationals and re- rent payments and investments, which allows financial in-
solved to help others by building a credit card that does not stitutions to make credit more accessible to worthy borrow-
require a credit score for approval. ers without added risk.

The company further noted that TomoCredit's TomoScore The company's solutions are backed by top-tier investors,
is a well-trained underwriting model that utilizes real- including Morgan Stanley, Mastercard, and Barclays, en-
time, cash-flow based performance data as an alternative to abling millions of qualified individuals to access credit,
traditional credit scores. Suh added.

By monitoring the cash flow attributes of those considered
"credit invisible," including new U.S. citizens, small and Company: TomoCredit
midsize business owners, students and other young adults Product: TomoScore
who demonstrate sound financial practices, TomoScore
gives lenders a proven method to evaluate and acquire Website: https://tomocredit.com
mid- to high-income borrowers while keeping default rates Contact: help@tomocredit.com
at better-than-industry averages TomoCredit attested.

30