Salmon group disrupts rural banking with startup strategy in Philippines

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The Salmon Group has disrupted rural banking with its startup strategy model for Rural Bank of Sta. Rosa by strengthening the capital base and accelerating digitalization to drive financial inclusion.

Salmon co-founder and Rural Bank of Sta. Rosa chairperson Raffy Montemayor highlighted the importance of sustainable funding and digital transformation to improve the bank's products and services and enhance customer experience.

Montemayor said the latest investment received was $7 million from the World Bank's International Finance Corp. (IFC) last May.

'We are injecting fresh capital to make Rural Bank of Sta. Rosa a robust financial institution by attracting notable investors such as the IFC, Singapore-based venture capital fund manager NorthStar Group and Abu Dhabi's sovereign wealth fund ADQ,' Montemayor said.

The capital injection saw the bank equity of Rural Bank of Sta. Rosa surged by 1,075 percent to P385 million from P32.8 million. The bank's total deposits soared by 439 percent to P440 million from P82 million and bank loans increasing by 648 percent to P400 million from P54 million as of end of May.

Montemayor said the role of technology in the development of Rural Bank of Sta. Rosa's products and customer experience to expand its customer base beyond its physical branches.

'We are planning to launch our mobile app and debit card within the year subject to the approval of Banko Sentral ng Pilipinas to reach customers,' Montemayor said.

The Rural Bank of Sta. Rosa is offering a competitive 8.88 percent interest rate for time deposits of over P500,000 which is especially beneficial for those in Sta. Rosa and nearby residents. For time deposits of P50,000 to P500,000, the bank is offering six percent interest rate for 12 months.

Montemayor said the 8.88 percent time deposit interest rate offer of Rural Bank of Sta. Rosa has no catch or promo period.

'Earning our competitive 8.88 percent interest rate is straightforward. Simply deposit more than P500,000 to a maximum of P50 million. No hidden fees or complex requirements involved,' he said.

The Salmon Group is made up of Salmon Group Ltd. and its subsidiaries in the Philippines including Sunprime Finance Inc. and the Rural Bank of Sta. Rosa (Laguna) Inc., which was established in 1963.