Thursday 11 January 2024

FINTECH COMPANY SALMON BECOMES LICENCED BANK IN THE PHILIPPINES

KUALA LUMPUR, Jan 10 (Bernama) -- Fintech company Salmon announced it has received regulatory approval from the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) to acquire the controlling interest in Rural Bank of Sta. Rosa (Laguna), a well-respected licenced financial institution serving Filipino communities since 1963.

Salmon in a statement said it will own 59.7 per cent of the bank upon completion of this transaction which will conclude in the coming weeks.

The bank’s licence and its geographic footprint will enable Salmon to offer artificial intelligence (AI)-centric consumer credit and debit products nationwide.

“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.

“This transaction will help us reach additional underserved communities in the Philippines, bringing modern, customer-centric and easy-to-access financial services to more people,” said Salmon Co-Founder and Business Head in the Philippines, Raffy Montemayor.

Becoming a licenced bank in a major market represents a significant milestone for both Salmon and the Philippines as Salmon joins only a handful of other fintech companies operating licenced banking institutions in Southeast Asia.

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

The transaction also supports the Rural Bank Strengthening Program launched by the BSP in 2022 to enhance the country’s rural banking sector and promote inclusive growth to address the changing needs of the dynamic, young and technologically savvy Filipino population.

Salmon will maintain and enhance the bank's offline presence, injecting significant capital and technology into it to upgrade its offering for all customers.

-- BERNAMA

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