The Southeast Asia-focused digital bank plans to use the new funds to launch its digital bank in the Philippines and target the start of commercial operations in the third quarter of 2020.

Tonik received approval from the Philippine central bank last January, allowing it to provide digital banking services in the country.

Based in Singapore, Tonik provides retail financial products, including savings deposits, loans, current accounts, payments, and cards on a secure digital banking platform.

According to Tonik, the Philippines represents a US$140 billion retail deposit market, and a US$100 billion unsecured consumer lending opportunity.

“Over 70% of the adult population in the Philippines remains unbanked, and market research indicates that over 50% of existing bank clients would be keen to switch their deposits to a pure-play digital contender,” said Greg Krasnov, founder and CEO at Tonik.