The installment loans of a profitable digital bank are now available in the stores of a leading national retailer with more than 150 outlets across the Philippines.

The Philippines is an archipelago of more than 7,000 islands, usually grouped into three regions: Luzon in the north, home to the capital Manila; the Visayas in the centre; and Mindanao in the south. Most of the country’s banks, fintechs and investors are based in Manila, and much of the lending activity follows them. Davao City, the largest city in Mindanao, is the base of EMCOR, a household-name retailer of appliances, motorcycles, furniture and phones. EMCOR operates more than 150 stores and service centres across the Visayas, Mindanao and Palawan, describes itself as one of the top three household appliance retailers in the country.

Its new partner is Tonik, the first standalone digital bank licensed by the country’s central bank, the Bangko Sentral ng Pilipinas, and the first digital lender without a parent bank, telco or retail ecosystem behind it to post a profit [5][8]. The setting matters for both. Close to half of Filipinos remain unbanked, according to one industry estimate [12], and Tonik says more than 80% of its Shop Installment Loan borrowers are new to credit [9]. For many households in the provinces, an installment plan at the appliance store is the nearest thing to a bank.

On October 23, 2026, EMCOR and Tonik Digital Bank signed a memorandum of agreement at EMCOR’s head office in Davao City, bringing Tonik’s Shop Installment Loan to EMCOR’s stores [1][2]. Qualified customers can borrow up to ₱50,000 on a first purchase, applying through the Tonik app with one valid ID, for appliances, smartphones, electric bicycles, furniture and other essentials [1][2].

On its face, this is a retail financing arrangement of the kind that gets announced regularly. The terms around it say more. Financing now accounts for about 30% of EMCOR’s nationwide sales, up from 18% a year earlier [1]. The program began at 20 EMCOR branches and has since grown to 32 participating EMCOR stores, according to SunStar’s report, with both companies planning to push further across Mindanao and the Visayas in 2027 [1]. News Fort PH reports plans for 30 more stores across Mindanao, the Visayas and Palawan [2].

What it means for the industry

Retailers are choosing their credit partners deliberately. EMCOR is part of the J-Del Group, a Philippine holding company [4], and was not short of financing options. A non-bank installment lender has financed two-wheeler purchases at EMCOR in Davao since August 2024, and in May 2026 launched an EMCOR-branded credit card across 132 EMCOR stores, with a limit of up to ₱100,000 and zero interest for up to 45 days [3]. Tonik’s agreement sits alongside those arrangements. A retailer that keeps adding lenders is treating credit as a core part of its sales engine, with repayment performance as important as approvals. Aparejo put the stakes plainly: extending credit to customers who cannot pay does them a disservice [1].

Banks are entering a space non-bank lenders built. Non-bank installment lenders have been active in Mindanao for years; one reports 1.8 million customers across the island through 2,900 partner stores since entering in 2017 [3]. Tonik is arriving in a region where installment credit at the point of sale is already familiar, so the question is who can serve it more cheaply and with better credit quality. Tonik says its retail deposit funding costs 3–6%, against 15% or more for non-bank lenders [8]. That is a company claim, but it names the lever: a licensed digital bank with deposit access can price installment credit from a lower cost base, and retailers that care about monthly payments will notice.

Credit-building becomes part of the retail pitch. Tonik has said more than 80% of its Shop Installment Loan customers are new to credit [9]. For a first-time borrower in Davao or Cagayan de Oro, a ₱50,000 appliance loan repaid through a bank app is an entry into the formal credit system. Aparejo said the partnership would also help customers become familiar with digital banking [2]. Responsible lending was a theme from every executive quoted: Tonik’s Addie Valdezco stressed that good loans matter as much as volume, and that borrowers must be able to manage repayments [1].

What it means for Tonik

Tonik’s model is a case of a competitor choosing the terrain it can win on. Rather than racing neobank rivals for app downloads and idle deposits, it built a lender, and profitability followed: positive consolidated cash net income in the first quarter of 2026, a US$110 million loan portfolio in April (up 2.3 times year on year), and an annualized revenue run rate above US$60 million, 99% of it from lending [5][6].

The portfolio is deliberately spread across salary-deduction loans through employers, merchant installment financing and digital personal loans [5][6]. The employer channel runs through Tendo, whose partners include Concentrix, the Philippines’ largest private employer [7]. Shop Installment Loans cover the retail side, where Tonik has signed national and regional names over time, including Robinsons Appliances in 2025 [9]. Each channel hands Tonik a borrower that a partner has already sourced and, in the retail case, a customer standing at the counter with a purchase in mind. Distribution costs sit largely with the partner, and the first loan starts a repayment record that Tonik can use to offer the next one. Tonik has said it plans to scale its merchant network and strengthen revolving credit products for repeat borrowers [6].

EMCOR fits that pattern in three ways.

First, it opens a region Tonik has been working toward. The bank brought its Shop Installment Loan to Cebu in August 2024, after launching it with Luzon retailers [10]. CEO Greg Krasnov called Mindanao “our first big opening” at the signing [1], and EMCOR’s Visayas and Mindanao footprint gives Tonik in-store reach there without building branches.

Second, it adds a retailer with demonstrated demand for credit. A store base where financing already drives roughly 30% of sales is a ready market for installment loans [1].

Third, it leaves room to grow. The 32 participating stores reported by SunStar are roughly a quarter of the 132 EMCOR stores named in a separate credit-card rollout [1][3] (a comparison drawn from two sources, not a figure either company reported). If the rollout reaches the rest of the network, the loan volume at stake changes materially.

Several things bear watching. Neither report discloses interest rates, fees or tenors [1][2], so the competitive position against the other financing options at EMCOR cannot yet be judged on price. EMCOR customers will have more than one financing option at the counter, which makes approval speed and in-store experience decisive. And a new region with a first-time borrower base tests the underwriting that has carried Tonik to profitability elsewhere. EMCOR is one example of a merchant channel Tonik can replicate across other regional retail chains, which is where the larger opportunity lies.

For the industry, the deal shows retailers treating licensed banks as credit partners and Mindanao as a market worth contesting. For Tonik, it extends a model built on partners, deposits and repeat borrowers into a region it has been preparing to enter.

References

1. Sun Star Davao Digital. “EMCOR, Tonik expand consumer financing.” SunStar, October 27, 2026. https://www.sunstar.com.ph/davao/business/emcor-tonik-expand-consumer-financing
2. Palo, Ruth. “EMCOR, Tonik seal partnership to offer more financing options to customers.” News Fort PH, October 2026. https://newsfortph.com/local-news/emcor–tonik-seal-partnership-to-offer-more-financing-options-to-customers
3. Sun Star Davao Digital. “Home Credit boosts Mindanao footprint.” SunStar, July 28, 2026. https://www.sunstar.com.ph/davao/home-credit-boosts-mindanao-footprint
4. J-Del Group. “JDEL Group: Through the years”. https://jdelgroup.com.ph/?p=254
5. “Tonik posts Q1 income, 1st standalone digital lender in PHL to turn profitable.” BusinessWorld, May 13, 2026. https://www.bworldonline.com/banking-finance/2026/05/13/749153/tonik-posts-q1-income-1st-standalone-digital-lender-in-phl-to-turn-profitable/
6. “Tonik profitability Philippines Q1 2026.” Fintech News Philippines, May 2026. https://fintechnews.ph/71334/digital-banking-news-philippines/tonik-profitability-philippines-q1-2026/
7. “Tonik hits breakeven, targets ‘durable profitability’ ahead of pre-IPO round.” DealStreetAsia, May 2026. https://www.dealstreetasia.com/?p=482007
8. “Tonik is first standalone digital bank in PH to post profits.” Technobaboy, May 12, 2026. https://www.technobaboy.com/2026/05/12/tonik-is-first-standalone-digital-bank-in-ph-to-post-profits/
9. “Tonik partners with Robinsons Appliances to expand access to digital financing.” Qorus, March 26, 2025 (reprint of Tonik Digital Bank release). https://qorusglobal.com/index.php/content/29753-tonik-partners-with-robinsons-appliances-to-expand-access-to-digital-financing
10. Dagooc, Ehda M. “Digital bank eyes end of 5-6 lending system.” The Freeman (Philstar), August 13, 2024. https://philstar.com/the-freeman/cebu-business/2024/08/13/2377543/digital-bank-eyes-end-5-6-lending-system
11. EMCOR. “About Us.” https://emcor.com.ph/about-us
12. “PH credit growth hinges on data trust, cross-sector collaboration.” InsiderPH (estimate attributed to JurisTech CEO See Wai Hun). https://insiderph.com/ph-credit-growth-hinges-on-data-trust-cross-sector-collaboration