Fintech Salmon eyes move-up to thrift banking

Fintech firm Salmon, backed by the International Finance Corp. of the World Bank Group and which currently operates a rural bank in the Philippines, is planning to apply for a thrift banking license by the end of 2025.

This would coincide with more capital infusions meant to strengthen the company’s consumer lending business.

Raffy Montemayor, chair of Salmon’s unit Rural Bank of Sta. Rosa (Laguna), on 
Friday told reporters the firm was aiming for a new permit while eyeing to increase the rural lender’s capital to P2 billion by the end of next year.

The Bangko Sentral ng Pilipinas (BSP) requires rural banks to maintain minimum capital levels of P20 million to P500 million depending on the number of branches.

Salmon’s goal is four times bigger than the maximum requirement for rural lenders.

Thrift banks with head offices in Metro Manila and more than 50 branches are required to have at least P2 billion in capital. Those based outside Metro Manila need only P800 million for their 50 branches.

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“Our ambition is to build a retail bank that services the needs of every Filipino,” Montemayor said.

“What do we need in order to provide more of these products and services? Right now, what we can see is that a thrift bank [license] will make sense. But we need to make sure we’re ready capital-wise,” he added.

To reach that target capitalization, Montemayor said Salmon will hold a Series B fundraising activity in late 2025, the size of which is yet to be set as the company is still in process of determining its funding needs.