Leading financial technology firm, Salmon Group, said it has interrupted 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.

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 injection saw the bank equity of Rural Bank of Sta. Rosa increased 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 time deposit interest 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 especially beneficial for those in Sta. Rosa and nearby residents.

For time deposits of P50,000 to P500,000, the bank is offering a 6 percent interest rate for 12 months.

Montemayor said that the 8.88 percent time deposit interest rate offered of the 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 P50,000,000. No hidden fees or complex requirements involved," he said.