Southeast Asian Fintech company Salmon said it has secured approval from the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, to acquire a majority stake in the Rural Bank of Sta. Rosa (Laguna), a Filipino financial institution established in 1963.
With this acquisition, Salmon will own 59.7% of the bank, marking a pivotal step in its expansion strategy.
The completion of this transaction, expected in the upcoming weeks, will allow Salmon to utilize the bank’s license and geographical reach to introduce AI-centric consumer credit and debit products across the Philippines.
Salmon’s operational model combines both offline and online platforms, setting itself apart through exceptional customer service, evidenced by 92% of clients willing to recommend the company to others.
This development is noteworthy for Salmon and the Filipino banking sector, as Salmon becomes one of the few fintech firms in Southeast Asia to operate a licensed banking institution. The acquisition aligns with the BSP’s Rural Bank Strengthening Program launched in 2022, aimed at enhancing the rural banking sector and promoting inclusive growth.
It particularly targets the evolving needs of the young, tech-savvy Filipino population.
Salmon’s expansion will focus on underserved regions, including Metro Manila, Cebu, and Davao, with plans to open new branches pending BSP’s approval. The transaction underscores Salmon’s commitment to financial inclusion and the BSP’s vision to extend modern banking services to millions of underbanked Filipinos.
Raffy Montemayor, Co-Founder and Business Head of Salmon in the Philippines, expressed enthusiasm for this significant development.
“This transaction is a crucial step forward for Salmon. We are thankful for BSP’s support and its commitment to financial inclusion. Our goal is to reach more underserved communities, offering customer-centric and accessible financial services. Our partnership with the Rural Bank of Sta. Rosa (Laguna) is a testament to our shared vision of serving Filipino communities,” said Montemayor.
Salmon intends to bolster the bank’s existing offline presence, infusing capital and technology to enhance services for all customers. Its acclaimed customer-centric approach will now be extended across all its operations, reinforcing its commitment to meeting the diverse financial needs of Filipinos.