International Finance Corporation & Salmon to drive financial inclusion in the Philippines

By Gloria Mathias

International Finance Corporation (IFC), a member of the World Bank Group, has invested $7 million in Salmon, a consumer FinTech that focuses on providing short-term credit to consumers underserved by traditional banks.

IFC joins this $25 million Series A extension round (Series A-1) as a lead investor alongside Northstar Group, a Singapore-headquartered private equity and venture capital fund manager and other local and international investors.

The capital will enable Salmon to develop new credit products and a lifestyle banking offering, which Salmon plans to launch in the second half of 2024. IFC will also work with Salmon to further strengthen its role as a responsible lender.

“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 operates and owns a licensed bank (Rural Bank of Sta. Rosa Laguna Inc.) in the Philippines. Founded in July 2022, Salmon uses AI-enabled technology and a proprietary credit engine to offer market-disruptive consumer loans, such as Salmon Credit, Salmon Installment and Salmon Cash Loans.

“This strategic investment reflects our confidence in Salmon’s vision of providing modern, affordable, and easy-to-access banking services to every Filipino,” said Jean-Marc Arbogast, Country Manager for the Philippines at IFC. “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.”

Most of the Philippines’ adult population remains underserved by existing banks, especially in access to modern technology-centric credit products. According to the Bangko Sentral ng Pilipinas (BSP), only 25% have access to formal credit.

“We are excited to support Salmon’s vision to provide innovative digital banking services and credit solutions to the underserved in Philippines” said Wong Chee-Yann, CIO of Northstar Group. “We also look forward to partnering the founders of Salmon, IFC, and other investors in the journey to build a market leading consumer FinTech business in Philippines.”