Netbank, a Filipino bank specialising in embedded finance, has signed a loan channelling agreement with Salmon, the leading fintech company in the Philippines.
The agreement, signed by Salmon’s financing company, Sunprime Finance Inc., 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 offering in the Philippines, leveraging its existing network of around 2,000 locations across the country.
With Netbank’s loan channelling solutions, secured via First Loss Default Guarantee, 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.
“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,” said David Dela Paz, President of Netbank. “Through this partnership, we aim to provide more Filipinos with access to credit, thereby supporting the prosperity of communities across the country.”
“ 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-centered 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,” said Raffy Montemayor, co-founder of Salmon and a director of Salmon Group Ltd, the parent company of Sunprime Finance Inc.
Netbank (a Rural Bank), Inc. is the first banking as a service platform in Southeast Asia operating on a full banking license. 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.