Laguna rural bank gets digital boost

Digital firm Salmon is redefining rural banking by spearheading the digital transformation of Rural Bank of Sta. Rosa (Laguna) to elevate the customer experience.

Salmon co-founder and Rural Bank of Sta. Rosa (Laguna) chairperson Raffy Montemayor stated that the bank's digital transformation is a cornerstone of its disruptive startup strategy, designed to enhance customer experience and solidify brand trust within the banking sector.

“Digitalization is essential for developing innovative bank products and services that enhance customer experience and expand our reach beyond traditional branches,” Montemayor said.

He also revealed that the Rural Bank of Sta. Rosa (Laguna) is currently developing a mobile banking app, which it hopes to launch this year subject to Bangko Sentral ng Pilipinas approval.

“We aim to simplify banking for our depositors by incorporating the AI-powered features of the Salmon app, creating a seamless and convenient user experience,” said Montemayor.

He reiterated that the digitalization of the Rural Bank of Sta. Rosa (Laguna) will reinforce Salmon’s commitment to creating a robust, market-leading consumer fintech ecosystem within the Philippines.

Salmon has injected fresh capital to make the Rural Bank of Sta. Rosa (Laguna) is a stable financial institution that attracts notable investors such as the International Finance Corporation (IFC), Singapore-based venture capital fund manager NorthStar Group, and Abu Dhabi’s sovereign wealth fund ADQ.

The latest investment Salmon received was $7 million from IFC last May.

The investment of Salmon into the Rural Bank of Sta. Rosa (Laguna) and the enhancements made led to the bank’s total deposits soaring by 439 percent to P440 million from P82 million and its loans increasing by 648 percent to P400 million from P54 million as of the end of May 2024.