Leading financial technology firm Salmon Group will employ its startup strategy model on the Rural Bank of Sta. Rosa through strengthening the capital base and accelerating digitalization as part of financial inclusion efforts.

In a statement, 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.

“We are injecting fresh capital to make Rural Bank of Sta. Rosa a robust financial institution by attracting notable investors such as the International Finance Corp. (IFC), Singapore-based venture capital fund manager NorthStar Group, and Abu Dhabi’s sovereign wealth fund ADQ,” Montemayor stated.

“The latest investment we received was $7 million from IFC last May,” he added.

The capital infusion saw the equity of the Rural Bank of Sta. Rosa increase by 1,075 percent to P385 million from P32.8 million.

On the other hand, the bank’s total deposits soared by 439 percent to P440 million from P82 million and bank loans increased by 648 percent to P400 million from P54 million as of the end of May.

Montemayor emphasized the role of technology in the development of the 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.

Competitive rate

He 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 beneficial for those living in Sta. Rosa and nearby communities.

For time deposits of P50,000 to P500,000, the bank is offering a six percent interest rate for 12 months.