Tonik, a Singapore-based digital bank targeting Southeast Asia, announced that it has raised US$6 million in an institutional funding round led by venture capital firms Insignia Ventures Partners and Credence Partners.
These funds will be used to launch its digital bank in the Philippines, with commercial operations starting in the third quarter of 2020. Its support and research & development functions will be based out of Singapore and India.
Tonik was founded in 2018 by current CEO Greg Krasnov. Its offerings include deposits, payments, loans, and current accounts.
According to Krasnov, a huge opportunity lies in the country’s huge unbanked market. “Over 70% of the adult population in the Philippines remains unbanked, and market research indicates that over 50% of existing bank clients would be keen to switch their deposits to a pure-play digital contender.”
Tonik will be competing in this market against some digital bank players who have launched previously in the country, such as ING Philippines and CIMB Bank Philippines.