Salmon Becomes a Licensed Bank in the Philippines

09.01.2024 - 11:36:44

Business Wire India

Salmon, a fintech working to improve access to credit, savings and investments for over 500 million underserved customers in Southeast Asia, announces that it has received regulatory approval from the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) to acquire the controlling interest in Rural Bank of Sta. Rosa (Laguna), a well-respected licensed financial institution serving Filipino communities since 1963.

Salmon will own 59.7% of the bank upon completion of this transaction, which will conclude in the coming weeks. The bank’s license and its geographic footprint will enable Salmon to offer AI-centric consumer credit and debit products nationwide. Salmon operates both in offline and online settings, differentiating itself by emphasizing stellar customer service with 92% of the company's clients saying they would recommend Salmon to friends and family.

Becoming a licensed bank in a major market represents a significant milestone for both Salmon and the Philippines as Salmon joins only a handful of other fintech companies operating licensed banking institutions in Southeast Asia. The deal will bolster access to modern banking services for millions of underserved Filipinos in key regions including Metro Manila, Cebu and Davao, where Salmon plans to open new branches, subject to BSP approval. The transaction also supports the Rural Bank Strengthening Program launched by the BSP in 2022 to enhance the country’s rural banking sector and promote inclusive growth to address the changing needs of the dynamic, young and technologically savvy Filipino population.

Raffy Montemayor, Co-Founder and Business Head in the Philippines at Salmon, commented:

“We are excited to undertake this important next step in Salmon’s development and grateful for the continued support of the BSP and its vision of driving financial inclusion in the country. This transaction will help us reach additional underserved communities in the Philippines, bringing modern, customer-centric and easy-to-access financial services to more people. We are proud of the fantastic relationship we have developed with the executive team of the Rural Bank of Sta. Rosa (Laguna), and look forward to building a robust financial institution together to continue serving communities across the Philippines."

Salmon will maintain and enhance the bank's offline presence, injecting significant capital and technology into it to upgrade its offering for all customers. Salmon's customer-centric approach, celebrated by its existing customer base, will now extend across all channels, including offline.