FinTech Salmon becomes a licensed bank in the Philippines

By Gloria Methri

Salmon, a consumer credit FinTech, has received regulatory approval to acquire the controlling interest in the Rural Bank of Sta. Rosa (Laguna), making it a licensed bank in the Philippines.

Salmon will own 59.7% of the bank upon the completion of this transaction, which will conclude in the coming weeks. The license will enable Salmon to offer AI-centric consumer credit and debit products nationwide.

The deal will bolster access to modern banking services for millions of underserved and underbanked Filipinos in key regions including Metro Manila, Cebu, and Davao, where Salmon plans to open new branches.

The transaction also supports the Rural Bank Strengthening Program launched by the BSP in 2022 to enhance the Philippines’ rural banking sector and to 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 said, “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. The transaction will help us reach additional underserved communities in the Philippines, bringing modern, customer-centric and easy-to-access financial services to more people, regardless of smartphone ownership or customer location as we combine offline and online settings for providing our services. This transaction aligns seamlessly with our mission and values to expand financial inclusion and offer modern financial products to every Filipino, and we look forward to continuing our productive cooperation with the BSP to help us fulfill this mission.”

Salmon will maintain and enhance the bank’s offline presence, injecting significant capital and technology into the bank to upgrade its offering for all customers. Its products and services, strongly appreciated by its existing customers, will extend across all channels, including offline.