Tonik teams up with FinScore to uplift digital lending for Filipinos

By Edil Corneille

Tonik, a virtual bank in the Philippines operating under its own bank license by the Bangko Sentral ng Pilipinas (BSP), strikes a partnership with FinScore, an alternative credit scoring company. The two FinTech startups are on a mission to revolutionise the way Filipinos access loans for various purposes.

To carry out this mission, FinScore’s AI-powered Telco Data Credit Scoring technology will be integrated with Тonik’s digital banking platform. Credit Score based on Telco data draws upon over four hundred (400) telco variables such as data and voice usage, top-up patterns, location, and SIM age, among others. Powered by FinScore’s technologies, the neo bank Tonik will be able to provide a more efficient, secure, and accurate way of processing loan applications to Filipino customers, all accessible and centralised in one mobile app.

“Operating in a digital-savvy market with huge smartphone penetration, FinScore’s telco data technologies will enable us to reach and provide loans to more Filipinos,” says Greg Krasnov, Tonik Founder and CEO. “Doing so is key to forwarding our mission of accelerating financial inclusion in a country where majority of the population are underserved and unbanked due to lack of innovation-driven alternatives.”

Using Telco Data for Credit Scoring, FinScore’s scoring models have powered the telco credit scores of over 3.5 million Filipinos and over USD 500 million worth of loans have been disbursed in the Philippines.

Christo Georgiev, FinScore Country Manager and Chief Strategy Officer, also shares his delight for the partnership, “Credit Scoring For All. This is our commitment since we started FinScore. And the word “all’’ encompasses not only the unbanked market but also institutions just like Тonik that aspire to reshape how Filipinos experience saving and borrowing money with their innovative, all-digital banking services. Our partnership addresses the undeniably growing demand for fintech solutions and boosts financial inclusion.”

In November 2020, Tonik launched commercial operations under its own bank license from Bangko Sentral ng Pilipinas, allowing the neo bank to provide retail banking services. The virtual bank is set to launch its new digital banking platform publicly in the Philippine market in Q1 2021, offering a full range of services including transactional savings accounts and time deposits with interest rates.