Tonik, the first digital-only bank in Southeast Asia, has chosen US-based Daon to provide onboarding and biometric authentication for its mobile platform when it launches later this year.
The Tonik Financial venture received its banking licence from the Central Bank of the Philippines in January.
Its parent company, Tonik Financial, closed a $6 million round of equity funding for the new venture at the end of February. Regional venture capital investors Insignia Ventures Partners and Credence Partners participated, along with regional family offices and angel investors.
When it launches, Tonik Digital Bank will provide a full range of retail banking services, with an initial focus on retail deposits and consumer loans, through the first digital-only branchless bank licensed platform in the Philippines.
Daon, a privately held software company founded in 2000, will provide its IdentityX as a Service cloud offering to Tonik, establishing a simple, seamless, all-digital onboarding path for the digital bank’s customers, while meeting anti-money laundering and know-your-customer regulations for identity verification during account opening.
Customers will use biometric factors based on the Fast ID Online (FIDO) standards, with fingerprint, face and voice matching on the server for ongoing authentication.
Greg Krasnov, founder and chief executive officer of Tonik, underlined the importance of digital banking to better and greater access to financial services, particularly with the widespread issues caused by the coronavirus pandemic.
He said: “When the idea of Tonik Digital Bank was born, we knew that we were in the spotlight of the global trends of remote digital service and cashless transactions but the recent coronavirus outbreak made it even more obvious.”
“The world is changing, and the emerging markets are changing the fastest. In the Philippines, with its young and very digitally native population, digital banking will very soon become an industry norm. As for Filipinos that may currently be underbanked, their financial inclusion will also happen primarily through the digital channel. Together with Daon, we are happy to be at the forefront of this exciting trend.”
Tom Grissen, chief executive officer of Daon, added: “Daon has demonstrated a commitment to enabling some of the world’s most innovative banks to offer intuitive, secure and convenient solutions, that not only make it easier for customers to access services but improve the quality of their lives.”
“We look forward to working with a digital disrupter like Tonik as they revolutionise the banking sector in the Philippines and tap into significant market potential.”