World Bank's Investment Boosts RP Fintech Firm Salmon Group Ltd

The World Bank Group's International Finance Corporation (IFC) has made a significant investment of $7 million in the Philippines' fintech firm Salmon Group Ltd, marking a milestone in the country's push for financial inclusion.

With its proprietary credit engine and AI-enabled technology, Salmon offers market-disruptive consumer loans like Salmon Credit, Salmon Installment, and Salmon Cash Loans.

Participating in the $25 million Series A extension round (Series A-1), the World Bank Group joins as a lead investor alongside Northstar Group, a Singapore-headquartered private equity fund, and other local and international investors.

According to the IFC's statement, the capital infusion will empower Salmon to develop new credit products and introduce a lifestyle banking offering, scheduled for launch in the latter half of 2024.

Moreover, the IFC will collaborate closely with Salmon to reinforce its role as a responsible lender.

Raffy Montemayor, a Co-founder of Salmon, expressed enthusiasm for the partnership with IFC and Northstar, emphasizing their shared commitment to leveraging disruptive technology to enhance banking access for underserved populations.

Salmon, an innovative consumer fintech firm, focuses on providing short-term credit solutions to consumers who lack access to traditional banking services.

With its proprietary credit engine and AI-enabled technology, Salmon offers market-disruptive consumer loans like Salmon Credit, Salmon Installment, and Salmon Cash Loans.

Established in July 2022, Salmon holds ownership of a licensed bank, Rural Bank of Sta. Rosa Laguna Inc., in the Philippines.

Following approval from the central bank, Bangko Sentral ng Pilipinas (BSP), in December 2023, Salmon is poised to expand its financial service offerings to include deposit accounts, debit and credit cards, and other transactional products.

Jean-Marc Arbogast, Country Manager for the Philippines at IFC, highlighted the strategic significance of the investment in Salmon. He emphasized the firm's vision of providing modern, affordable, and accessible banking services to every Filipino.

Additionally, Arbogast underscored the potential of Salmon's AI-enabled products to disrupt the market and address critical gaps in the banking industry.

Despite advancements in the financial sector, a significant portion of the Philippines' adult population remains underserved by traditional banks, particularly in accessing modern technology-centric credit products.

Citing data from the BSP, the statement noted that only 25% of adults in the Philippines have access to formal credit.

IFC, as the largest global development institution focused on the private sector in emerging markets, is dedicated to leveraging its capital, expertise, and influence to foster economic opportunities and create markets in developing countries.

In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, aiming to alleviate poverty and promote shared prosperity amidst global challenges.