• Published on 7 August 2024
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Netbank partners with Salmon to fund rapid lending growth

Netbank, a Filipino bank specialising in embedded finance, has signed a loan channelling agreement with Salmon, one of the leading fintech companies in the Philippines.

The agreement, signed by Salmon’s financing company, Sunprime Finance will allow Salmon to assign its consumer loans to Netbank. These consumer loans will be booked on Netbank’s balance sheets and will be secured via First Loss Default Guarantee (FLDG) by Salmon. This will allow Salmon to further accelerate the growth of its loan portfolio and extend product offerings in the Philippines, leveraging its existing network of around 2,000 locations across the country.

With Netbank’s loan channelling solutions, secured via FLDG, partner fintechs can access funding to grow their loan book, without the attached cost burdens or strategic constraints. Partners can also easily manage their disbursements as well as streamline their collections through the Netbank Virtual Dashboard.

David Dela Paz, president of Netbank, said: “Netbank is committed to fostering financial inclusion by providing innovative banking solutions to fintech partners like Salmon. This agreement marks a significant milestone in our journey to support the growth of consumer lending in the Philippines. Through this partnership, we aim to provide more Filipinos with access to credit, thereby supporting the prosperity of communities across the country.”

Raffy Montemayor, co-founder of Salmon and a director of Salmon Group, the parent company of Sunprime Finance, said: “Through our partnership, Salmon will be able to further accelerate its growth providing access to credit to more underserved and underbanked Filipinos, in line with vision and goals set by the BSP for financial inclusion in the country. This collaboration leverages innovative AI-centred financing solutions of Salmon to overcome traditional barriers, allowing us to further grow our consumer loans nationwide and to support the prosperity of communities across the Philippines.”

Netbank is one of the first banking-as-a-service platforms in Southeast Asia operating on a full banking licence. It provides banking services, on a fully white-labelled basis, so that Filipino fintechs can grow fast and reduce their costs, thus accelerating financial inclusion and innovation. It provides simple, creative, low-cost solutions so partners can open accounts, offer loans and manage payments.

Re-disseminated by The Asian Banker