Tonik has announced a significant milestone: disbursing 1 million loans since its launch. This achievement underscores Tonik’s commitment to consumer lending, a key driver in the country’s expanding digital banking sector.
Such a focused strategy has fueled growth, with Tonik’s loan portfolio increasing sevenfold while simultaneously streamlining operational costs.
The resulting efficiency enabled the bank to achieve contribution margin breakeven in the fourth quarter of 2024, and it anticipates reaching cash flow breakeven in the near future.
Tonik’s digital-only approach allows for a diverse range of loan products, including payroll loans, shop instalment financing, and AI-powered digital cash loans.
To further expand its reach and provide accessible and affordable credit to a wider population, Tonik leverages AI and alternative data for credit scoring and loan processing. Consumer lending in the Philippines currently lags behind the regional average, making this strategy particularly significant.
Tonik’s performance thus suggests a potential shift in the consumer lending landscape, with digital banks like Tonik poised to play an increasingly prominent role.
Tonik is currently headquartered in Singapore and have operations in Manila and Chennai.
Prominent investors such as Sequoia India, Point72 Ventures, and Mizuho Bank back the company, further solidifying its position in the evolving financial landscape.
Featured image credit: Edited from Freepik
