Fintech startups Tonik and FinScore have unveiled plans to revolutionise how Filipinos save and borrow money, as part of a wider mission to accelerate financial inclusion in the Philippines.
The Philippines has a population of more than 100 million, spread across a vast territory of 7,600 islands but it is estimated that 70 per cent of that population is currently unbanked.
Tonik – the first neobank in the Philippines operating under its own bank licence by the Bangko Sentral ng Pilipinas (BSP) – has forged a partnership with credit scoring company FinScore to uplift digital lending.
FinScore’s technology, which is powered by telco data and advanced analytics, will be integrated into Тonik’s digital banking platform. The data draws upon more than 400 telco variables, such as data and voice usage, top-up patterns, location and SIM age, and enables Tonik to provide a ‘more efficient, secure and accurate way of processing loan applications to Filipino customers, all accessible and centralised in one mobile app’.
Greg Krasnov, Tonik founder and CEO, said: “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. 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.”
While, Christo Georgiev, FinScore country manager and chief strategy officer, commented: “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.”
Tonik plans to launch its new digital banking platform publicly in the Philippine market this quarter. Services will include transactional savings accounts and time deposits with attractive interest rates.
At the end of 2020, FinScore unveiled a data integration partnership with Provenir, a provider of risk decisioning and data analytics software.