Cambodia Investment Review
Credit Bureau Cambodia (CBC) has announced commitment of $1 million in support of the National Financial Inclusion Strategy to promote and strengthen financial inclusion over the next five years in Cambodia.
The exact details of how the funds will be used are still ongoing but the overall aim is to support local financial institutions that are not in the CBC’s coverage to come under its reporting system.
In addition, funding will be allocated to enabling women’s access to finance, promoting financial literacy on credit reporting, digital finance education and consumer protection.
CBC manages the most comprehensive credit reporting system in the country covering credit histories of more than 7 million borrowers from more than 170-member financial institutions.
Under the Prakas on Credit Reporting from the National Bank of Cambodia the CBC enables lenders to quickly check credit histories of borrowers without which the whole decision process becomes very lengthy and tedious.
All lending financial institutions are required to report credit information to CBC. Lenders need to check a loan requester’s personal credit file to assess their creditworthiness before deciding to issue a loan.
National Financial Inclusion Strategy 2019-2025
Oeur Sothearoath, CEO of CBC stated: “We would like to express our commitment to support the implementation of NFIS 2019-2025 and contribute to enable wider access to financial services to all Cambodians thereby promoting their economic opportunities and well-being.”
According to CBC statistics, 59% of Cambodians do not have access to formal financial services whereas 29% of adult Cambodians are completely excluded from access to formal as well as informal finance.
Chea Serey, Chairwoman of CBC stated: “Financial inclusion is a strong enabler of addressing country’s economic growth and reducing inequality.”
“As a key financial infrastructure in the country, CBC’s support shall bring synergy in NBC’s initiatives in driving financial inclusion in the country. CBC’s support areas shall help further improve inclusive and efficient credit markets, minimize transaction costs and reduce consumer vulnerabilities,” she added.
Priority activities in NFIS 2019-2025 include promotion of innovative credit products, consumer empowerment and protection, financial sector transparency, among others aiming to reduce financial exclusion of women by half from 27% to 13% and increase usage of formal financial services from 59% to 70% by 2025.
Credit Bureau Cambodia’s credit reporting system
Since 2012, CBC has been the leading provider of financial information, analytical solutions, and credit reporting services to financial institutions and consumers in the Kingdom of Cambodia.
CBC assists customers in managing the risks and rewards of commercial and financial decisions through a range of solutions, including Consumer Credit Report, Commercial Credit Report, K-Score, Data Analytical Report, Portfolio Monitoring Service, Portfolio Review Service, and Customized Solutions.
In August, CBC and Wing Money signed an agreement allowing users to electronically request their credit reports from Credit Bureau Cambodia (CBC) to check their credit history necessary for loan requests at any financial institution. Previously, applicants would need to travel to CBC’s physical office and request the report.
Users will be charged $5 for each self-request of their personal credit report made through the Wing Money App. The CBC report will then be emailed to the respective user within three working days.
Oeur Sothearoath previously joined Cambodia Investment Review – Leader Talks for an exclusive interview. Oeur explained how the bureau is helping Cambodia increase financial literacy, further developing consumers’ rating scores, and embracing the rapidly moving financial technology revolution. Click here to read the full interview.