Tonik deposits hit P5 billion eight months after launch

Total deposits held by Tonik Digital Bank, Inc. (Philippines) hit P5 billion to date as the lender attracted depositors through relatively higher rates.

The P5-billion mark was reached eight months since the bank launched in the country in March, it said in a statement on Thursday.

“We built Tonik to accelerate financial inclusion to more Filipinos, who deserve to have the fully digital ease and convenience in their banking experience. We are very grateful that we’re now closer to reaching this goal with the overwhelming support that we are receiving from our customers,” Tonik Chief Executive Officer and Founder Greg Krasnov was quoted as saying.

The digital bank secured P1 billion in deposits within a month since its launch.

Tonik offers rates of up to 6% for its time deposits. Its other deposits products yield rates of up to 4.5% per annum.

The bank is also extending credit where clients can complete a lending application in 15 minutes. The loan product is targeted for the country’s unbanked, underbanked, as well as middle class Filipinos that are looking for a quick credit application.

Aside from online transfers, bank clients can do cash-in and cash-out transactions with Tonik through point-of-sale terminals in convenience stores and pawnshops across 30,000 areas nationwide.

Digital banks offer their products and services digitally and are not expected to have brick-and-mortar branches like traditional lenders.

These lenders are expected to help the BSP with its target to bring 70% of Filipinos into the formal financial system and to make 50% of payments online by 2023. — L.W.T. Noble