Tonik powers up with GenAI to boost growth

MANILA, PhilippinesMay 29, 2024 /PRNewswire/ — Pioneering Philippine digital bank Tonik continues to highlight its innovative edge by becoming the first digital bank to successfully incorporate Generative AI featuring ChatGPT to its operations.

The strategic move underscores Tonik’s dedication in staying at the forefront of digital banking advancements while delivering exceptional banking services to its customers.

“With Tonik experiencing remarkable growth, customer interaction surged by 2.5 times,” said Tonik Chief Operating Officer, Tomasz Borowski. “In response, our focus has been on enhancing service quality while managing operational costs effectively.”

Generative AI, particularly ChatGPT, emerged as the ideal solution to meet these goals, ensuring seamless customer experiences while optimizing operational efficiency. Tonik now stands as the first digital bank in the Philippines to leverage this innovative technology in customer service.

Currently, nine out of ten customer queries are directed through Tonik’s in-app chat feature, with Generative AI autonomously resolving 75% of these queries without human intervention. This implementation has not only amplified the efficiency of Tonik’s in-house customer care team by 4.3 times but also empowered them to dedicate more time to resolving intricate issues.

The move also birthed new job requirements to cater to the ongoing AI revolution, including establishing a dedicated team that actively trains and monitors the AI daily to ensure that it addresses customer queries and concerns with accuracy.

Strategy for Profitability

Tonik’s initiative to implement the smartest banking chatbot in the Philippines has resulted in a substantial increase in the bank’s productivity while maintaining a headcount growth rate below 20%, directly contributing to the bank’s path towards profitability.

Anticipated cost savings, estimated at over USD 20 million in the next three years, will be reinvested to introduce lower fees, charges, and innovative new services, further enhancing Tonik’s offerings for its customers.

Moreover, the bank’s commitment to innovation also extends beyond customer care to credit inclusion, with Tonik being the sole digital bank in the Philippines offering three consumer loan product groups: payroll loan, shop installment loan, and cash loan, all available to its current onboarded customer base of 1.5 million Filipinos.

In the past 12 months Tonik has witnessed a doubling of loan production run-rate and loan portfolio growth, setting it apart from the stagnant loan portfolios of other digital banks in the sector.

“We strive to give our customers a cool and fun banking experience, and that begins by making it easy for them to bank. We want them to know that we are here when they need us, but we do not want them to spend too much time resolving any issues they encounter down the road,” said Tonik Chief Growth Hacker, Mila Bedrenets.

In today’s rapidly evolving digital landscape, customers demand more than standard banking services. Tonik addresses these evolving needs by leveraging AI-powered tools to enhance operational efficiency, thereby reaffirming its commitment to delivering exceptional customer care through innovation.

About Tonik

Tonik is the first digital-only neobank in the Philippines, providing loan, deposit, and payment products to consumers on a highly secure digital banking platform. The neobank operates based on the first digital bank license issued by the Bangko Sentral ng Pilipinas (BSP).

Tonik is led by a team of retail finance veterans who have previously built and scaled multiple retail banks and fintechs across global emerging markets. It is backed by top international investors, including Sequoia India, Point72 Ventures, and Mizuho Bank. Tonik’s tech stack is integrated in partnership with world-class banktech vendors including Mastercard, Finastra, Amazon Web Services, Google, Genesys, and Daon. Tonik operates out of hubs in Singapore (HQ), Manila, and Chennai.

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