The International Finance Corporation (IFC) has announced an investment of US$7 million into Salmon Group Ltd., the major shareholder of the Rural Bank of Sta. Rosa in Laguna, Philippines.
This funding is part of a wider initiative, the Series A-1 extension round, where IFC leads alongside other notable investors, including the Northstar Group from Singapore.
The investment is poised to bolster the capital base of the rural lender, facilitating the development of new credit products and lifestyle banking services, slated for launch later this year.
Jean-Marc Arbogast, the IFC Country Manager for the Philippines, highlighted the move as a testament to the corporation’s trust in Salmon‘s innovative approach to banking. He emphasised the potential of artificial intelligence (AI)-enabled products to revolutionise the financial landscape by addressing critical gaps in the sector.
“This strategic investment reflects our confidence in Salmon’s vision of providing modern, affordable, and easy-to-access banking services to every Filipino,”
he said.
Northstar Group’s Chief Investment Officer, Wong Chee-Yann, expressed enthusiasm for the partnership, underscoring a shared vision with Salmon to extend digital banking and credit solutions to underserved communities in the Philippines.
Salmon co-founder and business head in the Philippines, Raffy Montemayor, welcomed the partnership with IFC and Northstar, citing a common goal to enhance banking access through innovative technology.
“IFC is one of the largest venture capital investors in emerging markets, and we share IFC’s commitment to leveraging disruptive AI technology to boost access to banking among the underserved. Large part of IFC funding will be directed towards extending the footprint and enhancing capital position of the Rural Bank of Sta. Rosa (Laguna),”
Raffy shared.
Moreover, IFC plans to collaborate with Salmon to reinforce its commitment as a responsible lending institution. This partnership aims to create a robust, market-leading consumer fintech ecosystem within the Philippines.
Featured image credit: Edited from Freepik
