INTERNATIONAL Finance Corp. (IFC) is investing $7 million (about P404 million) into financial technology (fintech) firm Salmon Group Ltd., a controlling shareholder of Rural Bank of Sta. Rosa (Laguna), Inc.

The funds will be used for the capital of the rural lender, Salmon said in a statement.

The capital will be used to allow Salmon to develop new credit products and a lifestyle banking offering, it said. The fintech company said it plans to launch the products in the second half.

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

“By pioneering investment in AI (artificial intelligence)-enabled products in the country that will disrupt the market and traditional lenders, we hope to fill important gaps in the banking industry,” he added.

IFC is joining the $25-million Series A extension round (Series A-1) as a lead investor alongside Singapore-based private equity fund Northstar Group, along with other local and international investors.

“We are excited to support Salmon’s vision to provide innovative digital banking services and credit solutions to the underserved in the Philippines” Northstar Group Chief Investment Officer Wong Chee-Yann said.

“We also look forward to partnering with the founders of Salmon, IFC, and other investors in the journey to build a market leading consumer fintech business in the Philippines,” he added.

IFC will also work with Salmon to strengthen its role as a responsible lender.

Salmon was founded in July 2022 and uses AI-enabled technology and a proprietary credit engine to offer consumer loans.

“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 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),” Salmon Philippines Co-founder and Business Head Raffy Montemayor said. — AMCS

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