Cheese Raises $3.6M to Launch Digital Bank for Asian Americans

The Rise of Community-Focused Digital Banks

The fintech landscape has seen considerable acceleration recently, particularly regarding the emergence of digital banks specifically designed to serve distinct communities within the United States.

Over recent months, several neobanks have been created with a focus on the Black and Latinx populations. For example, we previously reported on First Boulevard’s $5 million funding round.

Introducing Cheese: Banking for the Asian-American Community

Today, Cheese is announcing the availability of its digital banking platform, primarily intended to serve the Asian-American community. Ken Lian, co-founder and CEO, relocated to the U.S. from China in 2008 to pursue higher education.

Lian recounts facing numerous challenges after his arrival, including thousands of dollars in bank fees and repeated rejections for standard bank accounts, despite maintaining a FICO score exceeding 800.

These experiences were the impetus for developing Cheese, which will deliver banking services through a platform supporting multiple languages. The startup, established a year ago, also incorporates a social element, enabling customers to support Asian-American businesses and organizations.

Lian’s entrepreneurial background includes founding Moolah Science, a company that assisted consumers in identifying potential refunds from online retailers. This venture was acquired by a Fortune 500 company in 2019.

Cheese was founded alongside Zhen Wang and Qingyi Li, based on the belief that Asian-Americans often encounter discrimination and systemic disadvantages in the U.S., despite having high levels of education.

“We possess a deeper understanding of Asian users than any other entity, simply because we are the users,” Lian explained to TechCrunch. “Conventional banking institutions failed to grasp my cultural background, lifestyle, or priorities. Our requirements are unique.”

He further stated, “Many challenger banks have overlooked Asian communities and immigrants. Our goal is to offer an exceptional product that welcomes these individuals to the U.S. and simplifies their banking experience.”

Funding and Partnerships

Cheese has secured a total of $3.6 million in funding over the past year. Investors include iFly.vc, Amplify, Adam Nash (former CEO of Wealthfront), Spencer Rascoff (Zillow co-founder), and venture capital firms Wedbush Ventures, Idealab, and Operate Venture Studio.

The startup has also collaborated with Jimmy Wong, a prominent advocate for Asian rights, who will serve as Cheese’s chief community ambassador.

Cheese’s platform offers a debit Mastercard (issued through Coastal Community Bank) accessible to individuals without a credit history. This is comparable to the offering from TomoCredit, which recently raised $7 million to expand its debit card product for those with limited or no credit history.

Customers can instantly access virtual cards via their mobile wallets. Additional features include early direct deposit (up to two days ahead of schedule), a 3% referral bonus, a 0.3% annual percentage yield (APY), and up to 10% cash back on purchases at over 10,000 participating merchants.

Addressing the Needs of the Underbanked

Han Shen, founding partner of iFly, believes Cheese has the potential to assist the underbanked population in the United States.

“They often do not receive the same level of service or suitable products for their banking needs and encounter various difficulties,” he noted. “Cheese has a roadmap of products designed for this customer base… Our research confirms a strong product-market fit, and we have confidence in this team.”

This investment represents iFly’s first lead investment in the consumer fintech sector.

“We were already committed to investing in mission-driven companies. They aim to simplify and improve banking for the underbanked, including immigrants,” Shen continued. “Individuals deserve superior service. In Cheese’s case, the question isn’t whether to provide it, but how to deliver it effectively to address their specific challenges.”

Supporting the Asian-American Community

Alongside its launch, Cheese has committed $100,000 to the Cheese Giveback Fund. This entire amount will be donated to nonprofit organizations and community programs supporting Asian neighborhoods and businesses affected by violence and economic hardship during the COVID-19 pandemic.