Neobank Tonik enters the consumer loan market with the launch of the 15-minute quick loan – Back End News
Digital-only bank Tonik will begin offering its fast lending product, another step in reaching the underserved consumer loan market in the Philippines.
“We estimate that there is a potential $ 100 billion market for consumer loans in the Philippines, which is currently 90% unserved,” said Greg Krasnov, CEO and founder of Tonik. “Our plan is to change this balance and make affordable loans available to the majority of Filipinos.”
Tonik’s Fast Loan does not require the customer to have a credit history or a pre-existing bank account at another bank, instead relying on alternative world-class credit scoring technologies for the credit decision.
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“Traditional banks require the applicant to have a credit history to approve a loan while over 80% of Filipinos have no credit history,” Krasnov said. “As a result, Filipino consumers are forced to borrow from friends and family or from payday loan providers at very high interest rates. This undermines their long-term financial stability and jeopardizes their future. “
term of the loan
This new product also offers a quick application process of less than 15 minutes, based on the upload of a single piece of ID and the last payslip. The credit decision is usually made within minutes through a proprietary AI-based underwriting. Once approved, funds are instantly credited to the customer’s Tonik account. From there, funds can be withdrawn through OTC partners Cebuana and MLhuillier, transferred to the customer’s other bank account or e-wallet, or paid through an ATM or merchant payment using the card. Tonik flow rate.
By taking advantage of a loan term of up to 24 months, Quick Loan customers can allocate up to P 50,000 of the total loan principal over their monthly budgets. Customers can also set their own preferred monthly repayment dates, as well as save time and lower interest rates by tying their ATM card to payroll.
“We have already attracted nearly $ 80 million in consumer deposits since our launch six months ago,” Krasnov said. “This has validated our ability to rapidly increase our lending resources, and therefore allows us to grow our loan portfolio quickly and without any reliance on third-party wholesale funding. So Quick Lending is just the first in a line of fully digital consumer loan products that we will be launching in the coming months. Our plan is to use advanced digital technology to help solve financial inclusion in the country, ”Krasnov said.
Tonik is supervised by the Bangko Sentral ng Pilipinas (BSP) through its own digital banking license, and deposits are insured by the Philippine Deposit Insurance Corporation (PDIC). Its unique cloud-based solution is powered by global financial technology leaders such as Mastercard, Amazon Web Services and Finastra.