TomoCredit is helping young consumers build credit—now they’re planning to build Gen Z’s perfect bank.

TomoCredit is helping young consumers build credit—now they’re planning to build Gen Z’s perfect bank. The San Francisco-based company is one of the few fintech cos run by women of color, and is aiding young people and immigrants who have no previous credit history. TomoCredit’s CEO Kristy Kim was born in South Korea and grew inspired to start the business following her personal struggle with credit when she moved to the U.S. TomoCredit’s credit system is designed to function more similarly to a debit card in that it “customizes credit limits based on bank accounts and other abilities to pay.” A user won’t be able to overspend if they hit their credit limit and the card will be cut off, but without penalties like late fees or interest charges. YPulse research shows building a good credit score is one of Gen Z and Millennials’ top financial goals right now and TomoCredit is betting on young consumers who are more likely than previous generations to embrace nontraditional banking and lending. (Observer)