Netbank, a rural bank specialising in embedded finance, has entered into a loan channelling agreement with local fintech Salmon.
The agreement, facilitated through Salmon’s financing arm, Sunprime Finance Inc., will enable Salmon to allocate its consumer loans to Netbank.
These loans will be recorded on Netbank’s balance sheets and secured through a First Loss Default Guarantee (FLDG) by Salmon.
This move aims to expedite the growth of Salmon’s loan portfolio and expand its product offerings across its network of approximately 2,000 locations nationwide.
Netbank’s loan channelling solutions, backed by FLDG, allow partner fintechs to access funding for loan book growth without additional cost burdens or strategic limitations.
Partners can also manage disbursements and streamline collections through the Netbank Virtual Dashboard.
Netbank, a banking-as-a-service platform operating with a full rural banking license, offers white-labelled banking services to help Filipino fintechs grow rapidly and reduce costs.
It provides affordable, creative solutions for opening accounts, offering loans, and managing payments.
Founded in 2022 by fintech and banking veterans Pavel Fedorov, George Chesakov, and Raffy Montemayor, Salmon Group operates subsidiaries in the Philippines, including Sunprime Finance Inc. and the Rural Bank of Sta. Rosa (Laguna), Inc.
The group is backed by the International Finance Corporation, Abu Dhabi’s sovereign wealth fund (ADQ), and other prominent international and Filipino investors.
“This agreement marks a significant milestone in our journey to support the growth of consumer lending in the Philippines.
Through this partnership, we aim to provide more Filipinos with access to credit, thereby supporting the prosperity of communities across the country.”
said David Dela Paz, President of Netbank.
“ Through our partnership, Salmon will be able to further accelerate its growth providing access to credit to more underserved and underbanked Filipinos, in line with vision and goals set by the BSP for financial inclusion in the country.
This collaboration leverages innovative AI-centered financing solutions of Salmon to overcome traditional barriers, allowing us to further grow our consumer loans nationwide and to support the prosperity of communities across the Philippines,”
said Raffy Montemayor, Co-founder of Salmon and Director of Salmon Group Ltd, the parent company of Sunprime Finance Inc.
