Tonik Financial, the first digital-only bank in Southeast Asia, has selected Finastra’s Fusion Essence in the cloud solution to revolutionise banking in the Philippines.

Finastra’s solution will power Tonik’s end-to-end core banking capabilities and support the bank in the roll out of its retail deposit and customer loans services in the Philippines.

Tonik is starting operations in 2020 in the Philippines via its own bank license, with support and R&D functions based in Singapore and Chennai, India.

Fusion Essence Cloud will be deployed out of the Microsoft Azure Southeast Asia Region (Singapore data centre), supporting Tonik with both low latency and data residency.

The deployment will allow the bank to have a low cost of entry into the market and increase business volumes.

The bank will also benefit from ongoing software updates as well as access to further innovation through, Finastra’s platform for open innovation and the development of applications.

Tonik founder & CEO Greg Krasnov said the banking sector in the Philippines is ripe for digital disruption and the bank seeks to create a hyper-compelling consumer proposition that will revolutionise the way money works in the region.

Krasnov said: “Finastra’s Fusion Essence Cloud – powered by Microsoft Azure – will give us the agility to get these services to market quickly and efficiently.”

Tonik, which was established in 2018, delivers retail financial products, including deposits, loans, current accounts, payments, and cards on a digital banking platform.