The International Finance Corporation (IFC), a division of the World Bank Group, is contributing $7 million to the fintech company Salmon Group Ltd. (Salmon) in the Philippines in order to promote financial inclusion in that nation.
IFC announced in a statement last Friday that it is the lead investor in this $25 million Series A extension round (Series A-1), joining other local and international investors, including the Singapore-based private equity fund Northstar Group.
The statement claims that Salmon will be able to use the funds to create new credit products and a lifestyle banking service that it intends to introduce in the second half of 2024.
In order to further solidify Salmon’s position as a responsible lender, IFC will collaborate with it.
“We are excited to welcome IFC and Northstar as our partners. IFC is one of the largest venture capital investors in emerging markets, and we share IFC’s commitment to leveraging disruptive technology to boost access to banking among the underserved,” said Raffy Montemayor, a Co-founder of Salmon.
Salmon is a cutting-edge fintech company that caters to customers underserved by traditional banks by offering them short-term loans.
The company runs and owns Rural Bank of Sta. Rosa Laguna Inc., a bank with a license in the Philippines.
Salmon, a July 2022 startup, offers market-disruptive consumer loans like Salmon Credit, Salmon Installment, and Salmon Cash Loans through the use of artificial intelligence (AI)-enabled technology and a proprietary credit engine.
The company was granted permission to become a licensed bank in December 2023 by the Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank. This will enable it to offer a wider range of financial services, such as deposit accounts, debit and credit cards, and other transactional products.
“This strategic investment reflects our confidence in Salmon’s vision of providing modern, affordable, and easy-to-access banking services to every Filipino,
“By pioneering investment in AI-enabled products in the country that will disrupt the market and traditional lenders, we hope to fill important gaps in the banking industry,” said Jean-Marc Arbogast, Country Manager for the Philippines at IFC.
