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January 12, 2024

Salmon: Now a Licensed Bank, Revolutionizing Fintech in the Philippines

TLDR:

Salmon, a fintech firm that aims to improve access to credit, savings, and investments for underserved customers in Southeast Asia, has received regulatory approval from the Bangko Sentral ng Pilipinas (BSP) to acquire the controlling interest in Rural Bank of Sta. Rosa. This acquisition will allow Salmon to offer AI-centric consumer credit and debit products nationwide. The deal will enhance access to modern banking services for underserved Filipinos and support the Rural Bank Strengthening Program launched by the BSP. Salmon plans to open new branches in key regions such as Metro Manila, Cebu, and Davao. The company aims to bring modern, customer-centric, and easy-to-access financial services to more people.

Key Points:

  • Fintech firm Salmon has received regulatory approval to acquire the controlling interest in Rural Bank of Sta. Rosa
  • The acquisition will enable Salmon to offer AI-centric consumer credit and debit products nationwide in the Philippines
  • The deal will bolster access to modern banking services for underserved Filipinos in key regions such as Metro Manila, Cebu, and Davao
  • The transaction supports the Rural Bank Strengthening Program launched by the BSP in 2022 to enhance the country‚Äôs rural banking sector
  • Salmon plans to open new branches in key regions, subject to BSP approval, to further expand its reach

Fintech firm Salmon has received regulatory approval from the Bangko Sentral ng Pilipinas (BSP) to acquire the controlling interest in Rural Bank of Sta. Rosa (Laguna), a licensed financial institution serving Filipino communities since 1963. Upon completion of this transaction, Salmon will own 59.7% of the bank. This acquisition represents a significant milestone for Salmon as it becomes a licensed bank in a major market and joins a handful of other fintech companies operating licensed banking institutions in Southeast Asia.

The acquisition will enable Salmon to offer AI-centric consumer credit and debit products nationwide in the Philippines. The company operates both in offline and online settings and differentiates itself by emphasizing stellar customer service. Salmon plans to open new branches in key regions such as Metro Manila, Cebu, and Davao, subject to BSP approval. These new branches will bolster access to modern banking services for millions of underserved Filipinos. The transaction also aligns with the Rural Bank Strengthening Program launched by the BSP in 2022 to enhance the country’s rural banking sector and promote inclusive growth.

Raffy Montemayor, Co-Founder and Business Head in the Philippines at Salmon, expressed excitement about this important step in the company’s development and its mission to drive financial inclusion in the country. Montemayor highlighted that the transaction will help reach additional underserved communities in the Philippines, bringing modern, customer-centric, and easy-to-access financial services to more people. Salmon plans to maintain and enhance the bank’s offline presence, injecting significant capital and technology to upgrade its offerings for all customers.