The opportunity is ripe for the digital-only bank in the country, which has a population of over 100 million – 70 percent of whom is currently unbanked – spread across a vast territory of 7,600 islands.
Tonik has rolled out its long-awaited deposit, payment, and card products to consumers in the Philippines, where it hopes to disrupt the traditional retail banking sector.
The digital-only bank intends to boost financial inclusion, as previously unbanked customers can have accounts set up within five minutes through its mobile app, which come with a virtual MasterCard debit card. Accounts can be topped up via interbank transfer, debit card, or in cash at close to 10,000 retail agents across the country.
Tonik said its use of technology will dramatically cut operating costs, and allows it to offer «game-changing» interest rates and not to charge unfair fees to customers. It plans to expand its offer to include a physical debit card and to allow customers to take out an all-digital consumer loan.
We expect our proposition for the #NeoNormal to resonate particularly strongly with the “digital natives” in the Philippines, who constitute most of the population,» Long Pineda, president of Tonik Digital Bank, said in an announcement on Friday.
Tonik is headquartered in Singapore, and is backed by venture capital funds including Sequoia India and Point72.
