TONIK right ? When you make something out of something , that something is money and the money is the savings that you take from your consumer .”
Krasnov says that on the lending side , the market that Tonik is operating on is deeply underpenetrated , with only 4 % of Filipinos being able to borrow from the incumbent banks . Instead , the culture of lending is interpersonal and 70 % of Filipinos that borrow , borrow from each other . Today , the banking total asset class in the banking system for unsecured consumer finance is about $ 10bn .
Krasnov says : “ If you add mortgage and cars , that ' s another like $ 15bn , and that ' s particularly nothing . So , the unsecured alone , it should be like $ 50 to $ 100bn if you just run per capita columns to other economies of similar level of development . So , even compared to neighbours , you know , Indonesia and Vietnam , which are similar , like three and half , 4,000 GDP per capita , the Philippines should already be 40 to 50 billion , and it ' s only 10 .”
Ultimately , he asserts , current banks don ' t understand how to lend to new bank clients . They don ' t understand how to credit and assess them – and so , they stay away . “ They ' re happily taking the low margin corporate business that is very well secured and they don ' t want to take that incremental risk . And they don ' t really have the knowhow to build those scorecards and use the alternative data , to use those really kind of low-cost processes that make it possible to lend a $ 500 ticket within 60 seconds with high probability of return . It takes quite a bit