The challenger bank will apply some of the $40 million it raised from Truist, BofA and others to a microloan program aimed at Black and Hispanic groups. It also plans to offer a debit card through community development financial institutions and minority depository banks.
The fintech, which has applied for a California banking license and federal deposit insurance, aims to become a full-service online bank for 1 million Americans by year-end, says Ron Oliveira, its U.S. chief executive.
TomoCredit relies strictly on cash-flow data to gauge the creditworthiness of immigrants and young consumers, who often have too little financial history for traditional scoring models.
Cheese, a new challenger bank aimed at Asian Americans and immigrants to the U.S., has established a fund to support groups that serve communities affected by racist attacks and economic hardship during the pandemic.
