February 4, 2020 – Singapore-based TONIK Financial announces it has acquired the first digital-only banking license from the Philippines’ Bangko Sentral ng Pilipinas (BSP).
Digital banking has increased in usage recently. While many universal banks have made the digital push, TONIK is unique because it is “digital-only”. Through a local branchless banking platform, it can focus on retail deposits and consumer loans.
With over 70% unbanked population in the Philippines, Newspaper Inquirer notes of researches that suggest that among the adults, a switch to pure digital banking is something they consider. According to BSP Deputy Governor Chuchi for Supervision and Examination Sector Chuchi Fonacier said they are consciously working on ensuring they maintain an “enabling” regulatory environment for responsible new financial players, aligned with their drive to bring the central bank closer to the Filipinos.
“Thus, it is with great optimism that we welcome TONIK Bank in the Philippines and we look forward to exciting digitally centered products and services and committed efficiencies that will benefit every Filipino,” – Chuchi Fonacier, BSP
In a statement, TONIK CEO Greg Krasnov said digital-only banks globally have successfully demonstrated an ability to immediately gain massive market share through compelling consumer propositions while operating at lower costs. Also, he said “We believe that the regulator’s confidence in us serves as the testament to the unique strength and track record of our team and the attractiveness of our product philosophy. We look forward to bringing a new level of digital banking services to the Filipino clients.”
Via its homepage, TONIK said its mission is to revolutionize the way money works in Southeast Asia. It aims to address the US$140 billion retail deposit and US$100 billion unsecured retail lending opportunities in the Philippines. Also according to TONIK, its team, led by Greg Krasnov, have expertise in building over 30 digital and retail banks globally. Krasnov himself has built and sold Platinum bank, a major consumer finance bank in Eastern Europe. Its president Long Pineda is the Founder and CEO of Rizal Microbank, a top microfinance bank in the Philippines and part of the RCBC Group.
This article is published on BitPinas: TONIK is New Digital Bank in the Philippines Launching This 2020