“My early experiences showed me how important financial inclusion is for people to get a better life. This is one of the reasons I do consumer credit in emerging markets—I really believe my work helps people lift themselves to a new level. It inspires me.”
Greg Krasnov’s journey from a teenage refugee to the founder of the Philippines’ first digital-only neobank is a testament to the transformative power of financial inclusion. As the driving force behind Tonik, Krasnov is revolutionizing banking in Southeast Asia, drawing on a lifetime of experiences that have shaped his mission to democratize financial services.
Krasnov’s story begins in 1991 when, at 16, he and his family fled Ukraine for the United States. Arriving with nothing, the young Krasnov quickly became the family’s lifeline, leveraging his English skills to start a computer repair and coding business. It was during this time that a pivotal moment occurred: his first car loan. This seemingly simple financial product opened doors, enabling Krasnov to expand his business and support his family. The experience instilled in him a deep understanding of how access to credit can be a catalyst for social mobility.
After honing his skills in private equity in Europe, Krasnov returned to Ukraine to found Platinum Bank, which grew to become one of the country’s largest consumer lenders. This success fueled his passion for fintech and led him to Asia, where he has spent the last decade building innovative financial services.
Today, as the Founder of Tonik, Krasnov is at the forefront of the digital banking revolution in the Philippines. Tonik’s neobank model is breaking down traditional barriers to banking, offering accessible, user-friendly financial services to a population traditionally underserved by conventional banks.
Krasnov’s vision goes beyond profit margins; it’s about empowerment. He sees Tonik as a tool for lifting people to new levels of financial security and opportunity. His personal journey from refugee to fintech pioneer infuses Tonik with a mission that resonates deeply with its customers – the promise of a better life through financial inclusion.
Below are the interview highlights:
Could you give our readers an insight into your company and its inception story?
Before Tonik or any business ventures in Southeast Asia, I originally came to the region to relax and enjoy the proverbial “retired CEO” experience. After a couple of years, however, I noticed the emerging consumer finance phenomenon among the middle class in the region, similar to what I had witnessed in Central and Eastern Europe. It felt like a reboot of a familiar movie, different in setting but with the same storyline. Recognizing this, I decided to dive back into business, co-founding a few fintech startups and guiding them over the past nine years.
My journey led me to the Philippines, a country brimming with potential for credit inclusion in Southeast Asia. My first venture in the Philippines was as a co-founder of AsiaKredit, operating Pera247, one of the first data-driven digital lending apps in the country. During the global pandemic, we founded Tonik with a vision to bridge the gap between the traditional banking sector and the burgeoning digital economy. We became the first digital bank to secure a license from the Philippines’ Central Bank and in Southeast Asia, offering high-interest savings accounts, consumer lending products, and intuitive financial tools.
What are some of the biggest challenges you’ve faced as a business leader, and how have you overcome them?
One of the biggest challenges has been navigating the regulatory landscape while introducing an entirely new banking model. We tackled this by fostering strong relationships with regulators, ensuring compliance, and advocating for progressive policies.
Additionally, building trust in a digital-only bank required a significant focus on cybersecurity and customer education. We overcame this by investing heavily in state-of-the-art security measures and transparent communication with our customers.
How do you prioritize and balance the needs of different stakeholders in your business?
Balancing the needs of stakeholders involves a careful alignment of our business goals with customer satisfaction, regulatory compliance, and investor expectations. We prioritize open communication and transparency, ensuring all stakeholders are informed and engaged.
Our customer-first approach drives our product development, while regular updates and consultations with regulators and investors help align our strategic direction with their expectations.
Can you share an example of a time when you had to make a difficult decision as a leader, and what factors influenced your decision-making process?
One difficult decision was during the early stages of the pandemic, when we had to delay our official launch. While market demand was high, the uncertainty and potential risks required a cautious approach. The safety of our team and the reliability of our service were paramount.
After careful consideration of the risks and extensive planning to mitigate them, we decided to postpone, ensuring a more secure and stable launch later. This decision was influenced by our commitment to quality and customer trust.
How do you stay up-to-date on industry trends and incorporate them into your business strategy?
Staying current with industry trends involves continuous learning and networking. I regularly attend industry conferences, participate in webinars, and engage with thought leaders. We also have a dedicated team that monitors market trends and emerging technologies. By integrating these insights into our strategic planning, we stay ahead of the curve and continuously innovate our offerings to meet evolving customer needs.
Can you discuss a time when you had to pivot your business strategy and how you navigated that change?
Certainly. Credit has always been a cornerstone of our strategy at Tonik. Just six months after launching, we introduced our first lending product, the cash loan. It took off quickly, although our deposit growth was still outpacing our loan growth.
This sparked the realization that we needed to accelerate lending and level the playing field between our deposits and our lending portfolio. The rationale behind this is to ensure that deposits, which are essentially the bank’s raw material, are productively employed to generate returns through well-structured loan products.
To this end, we seized the opportunity to diversify our offerings and launched two new credit products: the payroll loan and the shop installment loan. Both have been incredibly well-received by our customers. With these additions, we are now the only digital bank in the Philippines offering such a wide array of consumer lending products, solidifying our position in the market. And with all three of our product lines now generating positive unit-level profitability, we are leading the charge in terms of loan portfolio growth among the digital banks.
How do you foster a positive and productive company culture, and what role do you play in that?
Fostering a positive company culture begins with clear communication and shared values. As a leader, I embody our core values and adhere to our growth manifesto, encouraging every member of our company to do the same. Our growth manifesto inspires us to be bold, take calculated risks, and double down on strategies that work.
As a fintech bank, we need to marry the values of a digital business with those of a traditionally more conservative banking company. So, we have five core values. Three of them are more traditional bank values: – Honesty, Reliability, Teamwork. But two others are non-banking ones – Street-Smart and Sense of Humour. Our non-banking values are critical to our innovation.
Our values are integrated into all our HR (Human Resources) processes – including hiring, onboarding, performance evaluation, and promotion. Simply put, you will not get far in Tonik if you do not act in accordance with our values. I strongly believe that in a company like ours, values are our “glue,” and we must maintain cohesion on the cultural level to operate well and continue delivering both performance and innovation. It is not an easy job, and one that I personally spend a lot of time on, continually reinforcing our values and culture.
Can you share an example of a time when you had to lead your team through a challenging situation, and how you supported them through it?
During the height of the pandemic, transitioning to remote work was a significant challenge. I supported the team by implementing flexible working hours, providing necessary tools and resources, and maintaining regular virtual check-ins to ensure everyone stayed connected and motivated. We also introduced wellness programs to support mental health. By focusing on communication and well-being, we navigated the challenges together and maintained productivity and morale.
How do you measure success in your business, and what metrics do you use to track progress?
At Tonik, we measure success through a combination of customer satisfaction, financial performance, and operational efficiency. From the get-go, we “burn for the customer,” and as cheesy as that may sound, our approach was always about challenging the status quo and placing the needs of our users above everything else.
This customer-centric approach led us to become recognized as by far the top digital bank in the Philippines in terms of customer experience, and most recently, we were awarded as a Top 5 CX of all digital banks globally. Our exceptional customer experience has led us to attract over 1.5 million customers to our platform to date, with very little marketing spend so far.
When it comes to financial performance, our focus area in the last couple of years has been achieving unit profitability on our lending products. Solving for credit quality in unsecured loans in the mass market is a key challenge that has kept the big banks away from this segment. We have solved it now, becoming the first digital bank that is operating with positive unit profitability in its unsecured loans, which allows us now to take the lead among all digital banks in terms of our loan portfolio growth.
What advice would you give to aspiring business leaders, and what qualities do you believe are essential for success in leadership roles?
My advice to aspiring business leaders is to stay curious, be resilient, and maintain a customer-centric approach. Essential qualities for success include adaptability, empathy, and effective communication skills. Leadership is about inspiring and empowering your team, so always lead with integrity and vision. Stay committed to your mission, and never stop learning and innovating.