Fintech in the Kingdom of Cambodia:
According to e-Conomy SEA 2019 reports prepared by Google, Temasek, and Bain & Company, the researchers analyzed current and future trends in six regions, namely Thailand, Vietnam, Malaysia, Singapore, Indonesia, and the Philippines. It says: “The internet economy in Southeast Asia will reach $ 100 billion in 2019, up 39% from $ 72 billion in 2018 and is expected to triple to $ 300 billion by 2025.”.
Cambodia has not yet used most of the internet economy internally and in Southeast Asia.
There is a large population of the unemployed segment that has not yet been served in Cambodia. Digital financial services offer the greatest opportunities for non-bank segments that have limited access to financial services.
Follow the funding initiative of the Cambodian government and supporters to promote growth and development in the Fintech sector in the Kingdom of Cambodia.
• Cambodian Fintech Association (CFA) The Cambodian Fintech Association (CFA) was founded in 2018 with the ambition to transform Cambodia into the leading country of Indochina in innovation and investment in fintech in the region. Membership consists of Fintech Start-ups, Hubs, Accelerators, VCs. It is a non-profit organization run on behalf of Cambodian members.
• Cambodia Fintech Day 2019 The “Cambodia Fintech Day 2019” was organized by the National Bank of Cambodia in Phnom Penh, Cambodia. Nav Chanthana, Governor of the National Bank of Cambodia (NBC), said at Fintech Day 2019 in Cambodia: “Fintech plays an important role as an innovation engine that helps improve the efficiency of the payment system in Cambodia. Less than 10% of transactions.
According to reports from Mekong Strategic Partners Co. Ltd (MSP), it will be worth $ 2.215 billion in the UK digital payments market (37% more than in 2018) by the end of 2020, with an expected value of around 3.469 billion. dollars. . . . Therefore, in 2020 there will be a growing demand for digital payments in Cambodia.
Let’s take a look at some of the upcoming Fintech startups in the Kingdom of Cambodia
Founded in 2016, Spean Lucy allows lenders to apply for small loans of $ 50 to $ 1000 using a mobile app.
Founded in 2016, Clik Payments aims to help Cambodia’s fragmented payment industry by developing a payment processing application that will unify all payment methods and networks on its platform.
• Wing is Cambodia’s leading mobile banking fintech. The services offered are bank transfers, bills, telephone changes, online shopping, payment by QR code.
• Pi Pay, founded in 2016, is a company that offers cash payments. The payment platform has a customer-oriented application with payment services for merchants. As of January 2020, the startup has approximately 300,000 users and over $ 350 million in transaction values.
Founded in 2016, BanhJi is a company that provides billing solutions for micro and small businesses in Cambodia. Last year BanhJi had around 3,000 SME customers using their software.
Here are some of the main strengths of the Kingdom of Cambodia:
• Strong economic growth potential Cambodia achieved low to middle-income status in 2015 with a growing middle class, purchasing power, and consumer behavior, which will translate into new solutions for payments, credit, and mobile development.
• Strong government support The most active regulator, the National Bank of Cambodia (NBC), supports loans, and banks in Cambodia continue to lend to consumers and businesses in the country. The Cambodian Investment Council (CIB) offers incentives to investors who want to support entrepreneurs who want to start a business in sectors such as technology, employment, export, tourism, environmental conservation, and rural development. This shows that the government believes in the entrepreneur. The government also offers exemption from taxes, fees, and registration fees.
• Foreign Ownership Grant To encourage foreign entrepreneurs to venture into Cambodia, the government allows 100% foreign ownership. This will help develop talent and create innovative financial services across the country.
Cambodia’s fintech ecosystem lags behind most other ASEAN countries, but with government efforts, it has begun to address weaknesses. They are looking for ways to integrate more than 80% of non-bank consumers, such as financial institutions that can implement digital banking, customer integration, mobile, and home banking, and office software.
Closing the funding gap and understanding the potential of e-commerce could change the way people across the country do business. By increasing Internet penetration, the efficiency of mobile devices can transform the financial sector.
The future of the pandemic is digital. Financial institutions around the world have begun to use new technologies to serve their clients remotely. With the help of technology, banks and microfinance institutions can pay remotely and offer contactless digital banking services.
We can conclude that fintech, with the support of the government, will significantly contribute to the development of the financial and economic sectors in Cambodia and will also bridge the service gap for the non-bank segment.