Fintech startup Salmon has successfully obtained a banking license in the Philippines after acquiring a controlling stake in a rural bank located in Laguna. The acquisition has been approved by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), and Salmon is set to possess 59.7% of the bank once the transaction is finalized in the coming weeks.
This licensing now allows Salmon to offer AI-driven consumer credit and debit products in the Philippine market. Additionally, the acquisition of the rural bank will help extend access to modern banking services to underbanked Filipinos in major regions, including Metro Manila, Cebu, and Davao. Salmon has plans to open new branches in these areas pending approval from the BSP.
Raffy Montemayor, Salmon’s Co-Founder and Business Head in the Philippines, expressed enthusiasm about the deal, stating that it will help the company reach and serve more underserved communities in the country. Salmon aims to provide customer-centric financial services that are accessible, regardless of smartphone ownership or customer location, by combining offline and online platforms.
Salmon intends to improve and expand the Rural Bank of Sta. Rosa’s services by injecting significant capital and technology into the institution. This move aligns with Salmon’s mission to enhance financial inclusion and offer modern financial products to every Filipino.
The growth of the fintech sector in the Philippines has been significant. According to Fintech Philippines, the sector experienced a growth rate of over 38%, with the number of companies increasing from 216 in the past two years to 299 by August 2023. This growth stands out when compared to other countries like Hong Kong and Switzerland, where the fintech sector has seen a slowdown.
The BSP’s Digital Payments Transformation Roadmap 2020-2023 emphasizes the role of digital payments in fostering the growth of fintech businesses engaged in e-commerce. As online purchases continue to drive the consumption of goods and services, the usage of digital payments is expected to increase. The Philippines also boasts a high internet penetration rate of 75%, making it one of the leading countries in the Asia Pacific region in terms of internet usage.