According to Tonik Chief Executive Officer and Founder Greg Krasnov, “Securing a digital banking license is one of this year’s anticipated milestones for us. This will help us further strengthen our foothold in the neo banking space through accelerating the rollout of our additional lending and payment products.”
The development comes after the neobank’s highly successful public launch in March 2021, which saw it secure over 1 billion pesos (US$20M) in retail deposits in under 1 month – a historic record for any new bank launching in the Philippines. Most recently, Tonik has also bagged its Pre-Series B funding, solidifying its position as one of the highest funded fintech in Southeast Asia.
Last year, the BSP issued Circular 1105 titled “The Guidelines on the Establishment of Digital Banks,” clearing the way for Tonik to scale up and apply for a formal digital bank license.
“We are truly privileged to be working with a regulator such as the BSP who shares the same vision of bolstering financial inclusion in the country,” shares Long Pineda, Country President at Tonik. “An official digital bank license will enable us to offer more products and services to narrow the gap between the banked population and the huge underserved segment in the Philippines.”
The bank, accessible via a mobile app, offers deposit interest rates of up to 6 percent per annum. Deposits are also insured by the Philippine Deposit Insurance Corp, it said. Other traditional banks with digital services as well as mobile wallets have been offering deposits, payments, and loan financial services in the country.