FinTech: NeoBank Tonik Awarded Philippines’ Digital Banking License

June 9, 2021 | FinTech, News
https://dailyalts.com/wp-content/uploads/2021/06/manila-1703413_1280.jpg

The Bangko Sentral ng Pilipinas (BSP) announced licenses for two digital banks on Tuesday – the other was Singapore-based UNObank.

With the award of the two licenses, which marks a further push in favor of fintech banking in Southeast Asia, the Philippines central bank has greenlighted a total of three banks for digital banking in the country. It awarded a license to state-backed Overseas Filipino Bank in March. Tonik had received its initial rural bank license from the BSP in 2019, allowing the neobank to provide retail banking services focused on retail deposits, card payments, and consumer loans. It claims its digital license is the first for any private and purely digital bank in the country. (THE FINTECH TIMES)

The licenses place the neobanks as a new category of banking – a “digital bank” offers financial products and services that are processed end-to-end through a digital platform and electronic channels with no physical branches offering financial products and services. It must also have a capitalization of at least 1 billion pesos.

The license is a shot in the arm for Tonik

“Securing a digital banking license is one of this year’s anticipated milestones for us,” said Greg Krasnov, Tonik CEO and Founder. “This will help us further strengthen our foothold in the neobanking space through accelerating the rollout of our additional lending and payment products.”

In March 2021, Tonik, the first digital-only neobank in the Philippines, raised over 1 billion pesos ($20million) in retail deposits in under 1 month in a highly successful public launch.

This was a record for a new bank launching in the Philippines.

Last month, Tonik raised $17 million in pre-Series B funding led by iGlobe Partners, a Singapore-based VC firm.

The digital bank currently offers deposit interest rates of up to 6% per annum, and unique saving features such as its Solo Stash and Group Stash products, as well as Term Deposits.

Financial inclusion and digitalization a key priority for the Philippines central bank

Philippine central bank Gov. Benjamin Diokno is committed to a goal of converting half of the country’s financial transactions to a digital mode and enabling formal financial accounts for 70% of Filipino adults by the end of his tenure in 2023.

The pandemic delivered an unexpected boost to that mission, however. According to Gov Diokno, the country will likely meet those targets by the end of 2022, sooner rather than later.

Related Story:  Tyme Raises $110M For Its Bank In South Africa, ASEAN Expansion

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/09/Infibranches-screenshots.jpg
Artificial Intelligence: Nigerian Fintech Startup Infibranches Raises $2M
September 20, 2021     ESG and Sustainability, FinTech, News

Nigerian startup Infibranches Technologies has received funding of $2 million from All On, an impact investing organization backed by Shell (NYSE: RDS.A). Infibranches will use the funds for customer acquisition,…

https://dailyalts.com/wp-content/uploads/2021/09/Cars24-screengrab.jpg
Venture Capital: Indian Used Cars Platform Cars24 Nabs $450M
September 20, 2021     News, Venture Capital

Indian used car platform Cars24 has raised $450 million comprising a $340M Series F equity round and $110M of debt. The capital funding valued the startup, founded in 2015, at…

https://dailyalts.com/wp-content/uploads/2021/09/Print_300DPI-20202007_6900NDallasParkway_Lounge1-1120x630-1.jpg
Digital Assets: Global Digital Bank Revolut Signs Up WeWork Space In Dallas Using Bitcoin
September 20, 2021     Digital Assets, News

In an innovative move, UK-based neobank Revolut is offering most of its 2,000 employees “permanent flexible working,” allowing them to choose when and how often they would like to work…

https://dailyalts.com/wp-content/uploads/2021/09/adult-1868109_640.jpg
Alternative Investments/Digital/ESG: Accelerate’s Carbon-Negative Bitcoin ETF

Accelerate Financial Technologies’ world-first Carbon Negative Bitcoin ETF (TSE: ABTC), now trading on the TSE, offsets more than 100% (“negative”) of the estimated carbon emissions from associated bitcoin mining and…