Tonik, the Philippines’ first digital-only neobank, announced that it has secured a digital banking license from the country’s central bank, Bangko Sentral ng Pilipinas (BSP), the first for any private and purely digital bank in the archipelago.
The development comes after the neobank’s highly successful public launch in March 2021, which saw it secure over 1 billion pesos ($20 million) 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 fintechs in Southeast Asia.
“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 roll out of our additional lending and payment
In December 2019, Tonik received its initial rural bank license from the BSP, allowing the neobank to provide retail banking services focused on retail deposits, card payments, and consumer loans.
A year later, the BSP issued Circular No. 1105 on 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,” said 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 nderserved segment in the Philippines.”
Tonik is supervised by the BSP and deposits are insured by the Philippine Deposit Insurance Corporation (PDIC). Its unique cloud-based solution is powered by global financial technology leaders such as Mastercard, Amazon Web Services, and Finastra.