Cambodia Investment Review
Credit Bureau Cambodia (CBC) has launched a new product to assist both borrowers and lenders gain a better picture of consumers’ financial health – combining two commonly requested metrics into one.
Credit Report PLUS will enable consumers that are currently requesting a single credit report from CBC to now take advantage of more benefits (1 Credit Report + 1 K-Score) under Credit Report PLUS.
This new and improved financial health check service feature is available exclusively on CBC Mobile app that will help borrowers stay on top of their financial health for a small once-off fee.
K-Score (Khmer Score) is a number that summarizes all the information from a credit report into a single score. It measures the applicants’ potential credit risk at the point of application and predicts the likelihood of payment default.
A personal Credit Report thoroughly outlines a consumer’s loan history and the K-Score uses advanced data analytics methods to consolidate this history into a single score that indicates the borrower’s overall creditworthiness.
Borrowers will gain a better picture of their financial health
Ouer Sothearoath CEO of CBC commented: “We have launched Credit Report PLUS to better serve the needs and provide a flexible option to consumers after one year of launching our mobile app. This new feature aims to improve financial literacy and encourage responsible financial behavior in Cambodia.”
“Borrowers will gain a better picture of their financial health and will be able to work to improve their creditworthiness, maintain their K-Score, and report any inaccuracies in their credit report,” he added.
Cambodia’s money lenders have been told by the National Bank of Cambodia they will need to closely monitor their customers consumer credit scores as the regulator looks to wind down COVID 19 allowance in 2022.
According to the latest data in the third quarter Consumer Credit Index Report published by CBC, consumer credit applications jumped 38% compared to the second quarter. Data showed a 5.84% increase in loan balances. Loans 30 days past due also increased by six percent.
This increase in overdue loans is pushing more financial institutions to closely monitor their customers borrowing habits through products offered by CBC.
CBC leading financial inclusion and digital transformation
Cambodia financial institutions are currently undergoing a digital revolution with Cambodia’s lending sector also ready to take the next step in digitalization by embracing emerging technology such as blockchain, artificial intelligence, and alternative data over the next two years, according to a recently released survey.
Most recently, CBC announced a 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.
Oeur Sothearoath 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.