Singapore-based Tonik Financial has closed a $6m equity funding round to fund the launch its first digital-only bank in the Philippines.
The funding round was led by venture capitalists Insignia Ventures and Credence Partners. Regional family offices and angel investors also participated in the funding round.
Go deeper with GlobalData
Tonik hopes to launch commercial operations in the Philippines in the third quarter of this year.
Tonik recently acquired own bank license from the Philippine banking regulator, establishing itself as the first digital bank in Southeast Asia.
The Philippines is said to have $140bn in retail deposits and $100bn unsecured consumer lending opportunity.
Tonik founder and CEO Greg Krasnov said: “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.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“We look forward to working with our new investors to improve financial inclusion in the country.”
Insignia Ventures founding managing partner Yinglan Tan said: “We are delighted to partner with the Tonik team led by Greg.
“Consumers in emerging markets deserve the ease and convenience of offerings like Amazon, and they expect the same from their bank.
“Building a modern bank from front to back is an incredible challenge, and we haven’t met a better team to take it on!”
The latest funding round follows Tonik’s announcement last month to launch its first digital-only bank in the Philippines.
In the same month, Tonik selected Finastra’s Fusion Essence solution to power core banking capabilities in the country.
Last week, Tonik taps NICE Actimize to enhance its anti-money laundering (AML) capabilities.
