Fintech company Finastra has announced that TONIK, the first licensed digital-only bank in Southeast Asia, has selected Fusion Essence Cloud to power its end-to-end core banking service.
To ensure low latency and data resiliency for TONIK, Fusion Essence will deploy the cloud out of the Microsoft Azure Southeast Asia Region in its Singapore Data Center, Finastra said in a statement.
European neo-banks are already being powered by Fusion Essence Cloud. Its deployment in Southeast Asia will help bring the benefits of innovative digital banking to the Philippines, it added.
TONIK, on the other hand, will benefit from a low cost entry into the market, ease and speed of deployment, as well as the ability to increase business volume while diversifying its product set cost-effectively.
“Research shows that over 70 percent of people across Southeast Asia are underbanked or unbanked, but almost 90 percent of industry experts agree that digital financial services will improve financial access,” said Wissam Khoury, Finastra senior vice president and general manager.
“At the same time, while more than 70 percent of SME merchants currently accept only cash, seven in 10 of those say they are likely to accept digital payments in the next five years,” he added.
“The opportunity for digital-only banking has therefore never been more ripe in the region and we’re thrilled TONIK has chosen Finastra’s Fusion Essence in the cloud to propel its mission to revolutionise money.”