To help expand financial inclusion in the Philippines, the International Finance Corporation ( IFC ) has invested USD 7 million in the country’s fintech firm Salmon . According to the announcement, IFC joins this USD 25 million Series A extension round as a lead investor alongside Northstar Group and other local and international investors.

The capital is intended to enable Salmon to develop new credit products and a lifestyle banking offering, which Salmon plans to launch in the second half of 2024. Furthermore, IFC will also work with Salmon to further strengthen its role as a responsible lender. Bridging gaps in banking Salmon is a consumer fintech that focuses on providing short-term credit to consumers underserved by traditional banks.

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

In December 2023, the company obtained approval from the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, to operate as a licensed bank. This milestone enables the firm to broaden its spectrum of financial offerings, encompassing deposit accounts, debit and credit cards, and various transactional services. The statement emphasises the significant portion of the Filipino adult population still lacking adequate banking services, particularly access to modern credit solutions.

Citing data from the BSP, it shows that merely 25 percent of the population have access to formal credit channels. IFC is the largest global development institution focused on the private sector in emerging markets. The firm works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.

In 2023, IFC committed a record USD 43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. .