Digital-only bank Tonik will offer its Quick Loan product, which is another step in reaching the underserved consumer credit market in the Philippines.
“We estimate that there is a potential $ 100 billion consumer credit market in the Philippines that is 90% underserved right now,” said Greg Krasnov, CEO and founder of Tonik. “Our plan is to change that balance and make affordable credit available to the majority of Filipinos.”
The Tonik Quick Loan does not require the customer to have a previous loan history or a pre-existing bank account with another bank, but instead relies on first-class alternative credit rating technologies for the credit decision.
Neobank Tonik launches physical debit cards with “high security features”
Tonik’s digital banking customers can now fund through PESONet. transfer
“Traditional banks require the applicant to have a credit rating in order to approve a loan, while over 80% of Filipinos have no credit,” Krasnov said. âAs a result, Filipino consumers are being forced to borrow from friends and family or from payday loan providers at very high interest rates. This damages their long-term financial stability and undermines their future. “
This new product also offers a quick application process of under 15 minutes, based on the upload of just one ID and the current pay slip. The credit decision is usually made within minutes through proprietary AI-driven underwriting. Once approved, funds are immediately deposited into the client’s Tonik account. From there, the funds can be withdrawn via the OTC partners Cebuana and MLhuillier, transferred to another bank or e-wallet account of the customer or paid out via an ATM or a dealer payment with the Tonik Debit Card.
By taking advantage of a credit period of up to 24 months, Quick Loan customers can distribute up to 50,000 pesos of the total loan amount over their monthly budget. Customers can also set their own preferred monthly repayment dates as well as save time and reduce their interest rate by linking their payroll ATM card.
“Since our launch six months ago, we’ve already attracted nearly $ 80 million in consumer deposits,” said Krasnov. âThis has confirmed our ability to rapidly scale our lending resources and therefore allows us to grow our loan book quickly and without reliance on third-party wholesale funding. So the Quick Loan is just the first in a series of fully digital consumer loan products that we will be launching in the coming months. Our plan is to use advanced digital technologies to solve financial inclusion in the country, âsaid Krasnov.
Tonik is regulated by Bangko Sentral ng Pilipinas (BSP) through its own digital banking license and the deposits are insured by the Philippine Deposit Insurance Corporation (PDIC). Its unique cloud-based solution is supported by global financial technology leaders such as Mastercard, Amazon Web Services and Finastra.