BSP approves Salmon banking license

CONSUMER financial technology firm Salmon has become a licensed bank after the Philippine central bank approved its purchase of a controlling interest in the Rural Bank of Sta. Rosa (Laguna), it said in a statement on Tuesday.

“Salmon will own 59.7% of the bank upon the completion of this transaction, which will conclude in the coming weeks,” it said.

The acquisition of the rural lender will allow Salmon to offer artificial intelligence (AI)-centric consumer credit and debit products in the Philippines through both offline and online settings, it added.

Salmon said it plans to open branches in Metro Manila, Cebu and Davao to increase access to modern banking services for underserved and underbanked Filipinos.

Under the deal, Salmon will enhance the rural bank’s offline presence through capital and technological improvements.

The rural lender will also distribute Salmon’s products and services through its offline and online channels.

“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,” said Raffy Montemayor, co-founder and business head at Salmon Philippines.

Established in July 2022, Salmon is a consumer financial technology company in Southeast Asia that focuses on AI and data-driven banking solutions. It said it is supported by the sovereign wealth fund of Abu Dhabi ADQ, as well as international and Filipino investors.

The Rural Bank of Sta. Rosa was set up in 1963 and has been operating in Laguna and Cavite provinces. — Aaron Michael C. Sy