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In focus
For this edition, we cover:
- Tonik’s 2025 breakeven target
- Leaders in Indonesia’s digital banking race
- An Australian CEO who handed the reins to his AI twin
Hello reader,
The Bangko Sentral ng Pilipinas (BSP) – the Philippines’ central bank – said in February that it expects most of the country’s licensed digital banks to remain loss-making in the foreseeable future.
According to BSP, deposits have surged on average, but loan book growth has remained slow, resulting in a low average loan-to-deposit ratio of 36%.
But Tonik, one of the six banks in question, had a high ratio in 2024.
It expects to buck the loss-making trend in the next two to three quarters – something that we dove into in this edition’s big story. How is Tonik looking to defy these odds? By taking a measured approach to loans.
The digital bank’s 2024 numbers show that its total deposits declined in 2024. This continues a similar year-on-year decrease in 2023. Meanwhile, Tonik has been doubling down on loans, with its loan-to-deposit ratio reaching around 60% in 2024.
Tonik CEO Greg Krasnov isn’t sweating the dip in deposits as less can be more when deposit costs go up. A tighter loan-to-deposit ratio, he says, is key to hitting breakeven.
Whether Tonik cruises or hits turbulence, we’ll all be watching.
Also, don’t miss our second top story: Indonesia’s digital banking battleground, unpacked in six charts. The race is just as fierce in Southeast Asia’s largest economy.
Miguel Cordon, journalist
Top stories
1️⃣ Tonik targets cash flow breakeven in 2025 as losses narrow
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