New digital bank to launch in the Philippines

Singapore-based Tonik Financial, the first digital-only bank in Southeast Asia founded in 2018, will launch operations in the Philippines after closing a Series A equity funding round bringing in $21 million.

In a statement on June 15, Tonik said the funding round was co-led by Sequoia India and Point72 Ventures, while Insignia Ventures Partners and Credence Partners also participated.

Early this year, Tonik Financial announced that its Philippine subsidiary, Tonik Digital Bank Inc., received approval from the Bangko Sentral ng Pilipinas, the central bank of the Philippines, to provide digital banking services, such as retail banking, deposits, and consumer loans in the country.

The financial technology company, founded by fintech entrepreneur Greg Krasnov, said it will be launching the digital bank in the Philippines on the basis of its own bank license.  

The venture capital funding comes as the Covid-19 pandemic, which the Philippine government struggles to contain, has prompted consumers to opt for online banking transactions as opposed to visiting banks.

“Covid-19 is causing consumers all over the globe to save more for emergencies, to care more about the safety of their money as well as about earning a fair interest rate on their deposits while having access to their funds for easy withdrawal and transfer,” Krasnov said.

Catching up in digital banking

The launch of the digital bank is seen as a positive development for the Philippines, which has largely been bypassed by a surge in digital banking in Asia in recent years. The country represents a $140-billion retail deposit market and a $100-billion unsecured consumer lending opportunity, Krasnov noted.

The firm has also observed a rapid jump in consumer demand for digital banking and digital transfers in the country since the start of the year. Studies show that more than 70 per cent of the adult population in the Philippines remains unbanked and market research indicates that over 50 per cent of existing bank clients would be keen to switch their deposits to a pure-play digital

“We are preparing to bring a highly differentiated experience to the Filipino consumer to address these needs and are honored to be supported in this by the regulators who have encouraged innovation and welcomed technology solutions to bolster financial inclusion,” Krasnov added.



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Singapore-based Tonik Financial, the first digital-only bank in Southeast Asia founded in 2018, will launch operations in the Philippines after closing a Series A equity funding round bringing in $21 million. In a statement on June 15, Tonik said the funding round was co-led by Sequoia India and Point72 Ventures, while Insignia Ventures Partners and Credence Partners also participated. Early this year, Tonik Financial announced that its Philippine subsidiary, Tonik Digital Bank Inc., received approval from the Bangko Sentral ng Pilipinas, the central bank of the Philippines, to provide digital banking services, such as retail banking, deposits, and consumer loans...

Singapore-based Tonik Financial, the first digital-only bank in Southeast Asia founded in 2018, will launch operations in the Philippines after closing a Series A equity funding round bringing in $21 million.

In a statement on June 15, Tonik said the funding round was co-led by Sequoia India and Point72 Ventures, while Insignia Ventures Partners and Credence Partners also participated.

Early this year, Tonik Financial announced that its Philippine subsidiary, Tonik Digital Bank Inc., received approval from the Bangko Sentral ng Pilipinas, the central bank of the Philippines, to provide digital banking services, such as retail banking, deposits, and consumer loans in the country.

The financial technology company, founded by fintech entrepreneur Greg Krasnov, said it will be launching the digital bank in the Philippines on the basis of its own bank license.  

The venture capital funding comes as the Covid-19 pandemic, which the Philippine government struggles to contain, has prompted consumers to opt for online banking transactions as opposed to visiting banks.

“Covid-19 is causing consumers all over the globe to save more for emergencies, to care more about the safety of their money as well as about earning a fair interest rate on their deposits while having access to their funds for easy withdrawal and transfer,” Krasnov said.

Catching up in digital banking

The launch of the digital bank is seen as a positive development for the Philippines, which has largely been bypassed by a surge in digital banking in Asia in recent years. The country represents a $140-billion retail deposit market and a $100-billion unsecured consumer lending opportunity, Krasnov noted.

The firm has also observed a rapid jump in consumer demand for digital banking and digital transfers in the country since the start of the year. Studies show that more than 70 per cent of the adult population in the Philippines remains unbanked and market research indicates that over 50 per cent of existing bank clients would be keen to switch their deposits to a pure-play digital

“We are preparing to bring a highly differentiated experience to the Filipino consumer to address these needs and are honored to be supported in this by the regulators who have encouraged innovation and welcomed technology solutions to bolster financial inclusion,” Krasnov added.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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