Philippine fintech startup Salmon is aiming to secure a thrift bank license for the Rural Bank of Santa Rosa as part of its strategic expansion in the country, according to company officials.
The move is intended to transform the rural bank into a retail-oriented thrift bank by late 2025, enhancing its services and reach within the Philippine financial sector.
Salmon plans to initiate the license application process with the Bangko Sentral ng Pilipinas (BSP) by the end of 2025.
The company is focusing on ensuring readiness in terms of capital adequacy and compliance with all regulatory criteria set by the central bank.
The Rural Bank of Santa Rosa, headquartered in Laguna with a branch in Cavite, is expected to play a pivotal role in Salmon’s expansion into traditional banking services.
Currently operating a hybrid model that combines banking and online financing services, Salmon launched its flagship product, Salmon Credit, in September 2023.
This product offers a revolving credit line aimed at underserved sectors, reflecting the company’s commitment to increasing financial inclusion and providing accessible credit options to a wider segment of the population.
Earlier this year, Salmon received regulatory approval from the BSP Monetary Board to acquire a controlling interest in the Rural Bank of Santa Rosa. Following the completion of the transaction, Salmon now holds a 59.7% stake in the bank.
This acquisition positions Salmon to implement its strategic plans for growth and to integrate its fintech innovations with traditional banking services.
To support its expansion, Salmon intends to increase the bank’s authorized capital to more than 2 billion pesos by 2025, following an initial increase to 1.2 billion pesos.
This capital infusion is aimed at investing in talent acquisition, advanced technology, new product development, and the growth of the bank’s loan portfolio. The enhanced capital base is expected to strengthen the bank’s financial position and operational capabilities.
In addition to its lending services, Salmon has introduced high-yield deposit products, offering an interest rate of 8.8% for time deposits.
This initiative has significantly boosted the bank’s funding base, enabling a rapid expansion of its loan portfolio and enhancing its ability to meet customer financing needs.
As part of its efforts to broaden its market presence, the bank plans to open a branch in Bonifacio Global City (BGC), Taguig, a major business district in Metro Manila. This expansion is expected to increase the bank’s visibility and accessibility to clients in the metropolitan area.
Salmon’s strategic initiatives reflect its ambition to enhance financial services in the Philippines by merging technological innovation with traditional banking.
The company’s focus on underserved markets aims to promote financial inclusion and contribute to the country’s economic growth by providing accessible and efficient financial solutions.
The company acknowledges that the success of its expansion and transformation plans is contingent upon meeting regulatory requirements and successfully navigating the competitive banking landscape.
Salmon intends to monitor risks associated with its business operations and manage them accordingly to ensure sustainable growth.