(Photo courtesy of PNA)
Financial technology firm Salmon Group remains optimistic about the growth of consumer lending in the Philippines, citing the resilience of the domestic economy and rising consumer spending despite inflation and higher interest rates.
The technology-driven banking and lending platform recently secured an additional USD 140 million, equivalent to approximately Php 8.88 billion, in capitalization to support its expansion.
Salmon operates app-based financial services regulated by the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC). Its investors include the World Bank Group’s International Finance Corporation (IFC) and United States-based venture investors.
Salmon co-founder Pavel Fedorov said the additional capital would support the expansion of existing lending products, the introduction of new financial services, and the strengthening of Salmon Bank’s operations.
The company also plans to expand its deposit services and other banking products.
“Across all three, we’ll continue to invest heavily on technology and product excellence, ensuring that our customers get a faster, simpler and seamless experience whenever they access our services,” Fedorov told the Philippine News Agency on Tuesday.
Asked how much of the new funding would be allocated to lending this year, Fedorov said the company intends to sustain its expansion and extend credit to millions of additional borrowers over the next year.
He said Salmon would rely on its artificial intelligence-powered credit assessment system and digital technology to improve loan processing and customer access.
“Our ambition is huge, but what matters most is building an institution that earns trust at scale, from customers, regulators, funding partners, and the market. Hence, our priority is to accelerate our growth responsibly — serving more Filipinos while keeping the right safeguards in place,” he said.
Despite elevated inflation and higher domestic interest rates, Fedorov maintained that the long-term outlook for consumer lending in the Philippines remains positive.
“We are convinced that the story of growing penetration of consumer credit in the Philippines is structural. There will be many ups and downs down the road for the entire industry, but the direction of growth is clear and it will not depend much on the changes in the interest rate,” he said.
Fedorov added that the company’s lending models have remained resilient despite economic challenges.
He said Salmon had recorded improving loan delinquency rates over the past year, indicating stronger repayment performance among borrowers.
“We have healthy positive unit economics that allows us to make profitable incremental loans to our customers,” he added.
The company aims to use its fresh capital and technology investments to expand access to credit while maintaining responsible lending practices and financial safeguards.
