To help expand financial inclusion in the Philippines, the International Finance Corporation (IFC), a member of the World Bank Group, is investing PHP404 million (US$7 million) in Salmon Group Ltd (“Salmon”), an innovative AI-enabled financial company, that is a controlling shareholder of Rural Bank of Sta Rosa (Laguna), Inc.
IFC joins a PHP1.4 billion ($25 million) Series A extension round as a lead investor alongside Northstar Group, a Singapore-headquartered private equity fund, and other local and international investors.
The capital will be used to further enhance the capital position of Rural Bank of Sta Rosa (Laguna) and to enable Salmon, the parent company of the bank, to develop new credit products and a lifestyle banking offering, which Salmon plans to launch in the second half of 2024. In preparation for this launch, the bank offers some of the most attractive deposit interest rates in the Philippines, including its time deposit with up to 8.88% interest for a 12-month term.
IFC will also work with Salmon to further strengthen its role as a responsible lender.
“We are excited to welcome IFC and Northstar as our partners. IFC is one of the largest venture capital investors in emerging markets, and we share IFC’s commitment to leveraging disruptive AI technology to boost access to banking among the underserved. Large part of IFC funding will be directed towards extending the footprint and enhancing capital position of the Rural Bank of Sta Rosa (Laguna),” said Raffy Montemayor, a co-founder of Salmon and chairman of the bank.
Salmon operates and owns a licensed bank in the Philippines. Founded in July 2022, Salmon uses AI-enabled technology and a proprietary credit engine to offer market-disruptive consumer loans, such as Salmon Credit, Salmon Installment and Salmon Cash Loans.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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About Salmon
Salmon is currently operating a licensed bank in the Philippines (Rural Bank of Sta. Rosa Laguna, Inc.) with the ambition of building the best credit-led and technology-centric bank in Southeast Asia.
Founded in July 2022 by an experienced founding team, Salmon uses AI-enabled technology and a proprietary credit engine to offer market-disruptive consumer loans (Salmon Credit, Salmon Installment and Salmon Cash Loans) providing differentiated simplicity and convenience to its customers. The mobile application of Salmon is rated at 4.8 and 92% of Salmon customers recommend its services to their friends and family.
For more information, visit https://salmon.ph.
