Business Bayani PH

Philippine consumer fintech company Salmon Group Ltd. secured a $7 million investment from the International Finance Corporation (IFC), a member of the World Bank Group. The investment aims to boost financial inclusion in the Philippines by supporting the development of new credit products and a lifestyle banking offering.

Salmon, founded in July 2022, caters to Filipinos underserved by traditional banks by providing short-term loans. The company leverages artificial intelligence (AI) technology to enhance its credit scoring and offers consumer loans like Salmon Credit, which allows users to borrow up to ₱50,000.

The fresh capital will be used to develop new financial products slated for launch in the second half of 2024. IFC also plans to collaborate with Salmon to strengthen its responsible lending practices.

Jean-Marc Arbogast, IFC’s country manager for the Philippines, expressed his organization’s support for Salmon’s mission. He stated that the investment reflects their belief in Salmon’s goal of making modern and affordable banking services available to all Filipinos.

The investment comes as part of Salmon’s $25 million fundraising round that attracted other investors including Singapore-based private equity firm Northstar Group and Abu Dhabi’s sovereign wealth fund (ADQ).

Expansion into full-service banking

Salmon recently obtained a banking license from the Bangko Sentral ng Pilipinas in December 2023. This allows the company to expand its services beyond loans and include deposit accounts, debit and credit cards, and other transactional products, effectively transforming into a full-service bank.

Enhanced payment channels with ECPay partnership

On top of the IFC investment, Salmon announced a strategic partnership with electronic payment systems provider ECPay on April 25th. This collaboration aims to expand Salmon’s payment channels, offering greater convenience to its customers.

ECPay’s vast network of over 490,000 over-the-counter and 3,000+ digital payment touchpoints, including convenience stores, pawnshops, remittance centers, and rural banks, will allow for easier payments for Salmon products.

This partnership is particularly beneficial for the unbanked population, who comprise half of Salmon’s customer base. They can now conveniently settle their repayments through ECPay’s extensive network.

“We are thrilled to partner with ECPay…ensuring that our customers can easily manage their financial transactions wherever they are,” said Raffy Montemayor, co-founder of Salmon and chairman of the Rural Bank of Sta. Rosa (Laguna), Inc.

Salmon, backed by international and Filipino investors, is committed to promoting financial inclusion in the Philippines. The company utilizes AI and data-driven technology to deliver innovative and customer-centric banking and financial services.Ⓒ