In a groundbreaking move for the Philippine fintech landscape, Tonik has become the first digital-only neobank in the country to obtain a digital bank license from the Bangko Sentral ng Pilipinas (BSP). This milestone was announced following a successful public launch in March 2021, during which Tonik attracted over 1 billion pesos (approximately US$20 million) in retail deposits within just one month, marking a historic event for new banks entering the market.
"Securing a digital banking license is one of this year’s anticipated milestones for us," said Greg Krasnov, CEO and Founder of Tonik. His excitement underscores the impact of this license on their operations, enabling them to enhance their offerings. "This will help us further strengthen our foothold in the neobanking space through accelerating the roll out of our additional lending and payment products."
Before this achievement, Tonik was granted an initial rural bank license by the BSP in December 2019. This license allowed the neobank to provide essential retail banking services, including card payments and consumer loans. In 2020, the BSP introduced guidelines for establishing digital banks, which paved the way for Tonik to apply for its formal digital bank license.
Long Pineda, Country President at Tonik, expressed gratitude for the BSP's support, stating, "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." He noted that obtaining an official digital bank license would be pivotal in broadening their service offerings to help bridge the gap between the banked and unbanked populations in the Philippines.
Tonik aims to transform the banking experience through all-digital services built on a secure platform that prioritizes accessibility and flexibility. They offer competitive deposit interest rates of up to 6% per annum and unique savings account products like Solo Stash and Group Stash. Ensuring customer security, Tonik operates under the supervision of the BSP, and deposits are protected by the Philippine Deposit Insurance Corporation (PDIC).
Furthermore, Tonik's cloud-based operations are supported by established financial technology providers, including Mastercard, Amazon Web Services, and Finastra, which enhances their capability to deliver innovative financial services effectively.
This achievement positions Tonik among the most funded fintech companies in Southeast Asia, having recently completed a successful Pre-Series B funding round, further solidifying its presence in the region.
As they continue to grow, Tonik's mission reflects a commitment to making banking more inclusive, aiming to cater to the significant portion of the population that remains underserved. The dynamics of the banking sector in the Philippines are transforming, and with Tonik at the forefront of this change, the future could be promising for both the bank and its potential customers.
With this license, Tonik is not only setting a precedent but also paving the way for further innovation in the banking sector, as digital banks continue to reshape financial services in emerging markets. As the company's services evolve, the broader impact on financial inclusion in the Philippines remains to be fully realized.