TONIK Digital Bank, Inc. has breached one million in cumulative loan disbursements, it said on Thursday.

“Reaching one million loans marks a major stride in our mission to deliver fast, accessible mass-market consumer credit across the Philippines. We’re scaling rapidly while turning an operational profit — a rare combo in fintech (financial technology) — and we see much more upside ahead,” Tonik Founder and Chief Executive Officer Greg Krasnov said in a statement.

Tonik, which was launched in 2021, said it expanded its loan portfolio by seven times and reduced unit operational service costs by five times in two years.

“This dynamic growth and cost focus helped the bank hit contribution margin breakeven in the fourth quarter of 2024, paving the way for cash flow breakeven within the next 9-12 months,” it said.

“Tonik also leads in average revenue per user and average margin per user across digital banking — showcasing a more robust monetization model than its payments-led peers.”

The bank said its focus on the unsecured consumer credit market, boosted by artificial intelligence (AI)-driven underwriting and the use of alternative data, has driven its growth.

“Consumer lending in the Philippines comprises just 5% of GDP (gross domestic product), far below the 21% regional average. Armed with a digital-only bank license, Tonik secures low-cost deposit funding, strongly outperforming fintech lenders forced to rely on more expensive wholesale capital,” Tonik said.

“With a diverse product lineup — payroll loans, shop installment financing, AI-powered digital cash loans, and upsell loans — Tonik is poised for accelerating its impact in 2025 due to aggressive deployment of AI across the organization.”

Tonik is one of the six digital banks licensed by the Bangko Sentral ng Pilipinas (BSP) to operate in the country.

Singapore-based holding company Tonik Financial Pte Ltd. holds a 60% stake in the digital bank, while Oak Drive Ventures, Inc. and Camerton, Inc. have shareholdings of 20% apiece.

Based on its annual report posted on its website, Tonik booked a net loss of P947.095 million in 2022, wider than the P643.9-million loss reported in 2021.

Tonik had total assets of P8.49 billion at end-September 2024, latest data from the BSP’s website showed. Its gross loan portfolio stood at P2.42 billion in the period, while its net loan portfolio was at P2.21 billion. Deposit liabilities stood at P6.03 billion.

The digital banking sector posted a combined P7.07-billion net loss in 2024, according to preliminary BSP data. — A.M.C. Sy