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Early-mover advantage is prized in the startup ecosystem and for good reason.
Entering a market or space early should, in theory, give a company a big competitive edge. Companies can build brand recognition and customer loyalty faster than its peers, therefore gaining greater market share.
Of course, it’s not the only thing you need to build a profitable business.
Tonik Financial was the first to secure a digibank license from the Philippines’ central bank and while its 2023 financials show some encouraging improvements, it’s still loss-making. Check out our featured story for a look at how the company is trying to turn that around.
Today we look at:
- Tonik Financial’s solid 2023 numbers on road to profit
- Why India scrapped its so-called angel tax
- Other newsy highlights such as Funding Societies disbursing US$64.2 million in Islamic business financing and Singapore agreeing a deal for a new quantum computer
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An interest tonic for Tonik
Image credit: Timmy Loen
Singapore-based Tonik Financial was the first neobank to secure a license from the Philippines’ central bank.
The firm’s latest financials reveal that it’s still loss-making, but Tonik is still aiming to be the first digital bank in the Philippines to turn a profit, despite rising competition.
- Interesting interest income stats: Tonik’s total interest income in 2023 tripled to US$19.9 million compared to the prior year, while interest expense only grew 6%. This helped the firm’s net interest income turn positive for the year after being in the red for 2022.
- Loans on the up: Tonik founder Greg Krasnov told Tech in Asia that throughout 2023, the bank was profitable in all three consumer lending products: salary loans, cash loans, and shop installment loans.
- State of play: As of May, Tonik said it had about 1.5 million customers in the Philippines, well behind competitors GoTyme Bank and Maya Bank. Tonik is also behind the two in terms of deposits market share, but Krasnov says that the company does not need to grow its deposit portfolio right now, as it has exceeded its targets.
Read more: Tonik interest income triples in 2023, eyes cash flow breakeven by next year
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