Phillip Bank PLC will partner with business process outsourcing firm Massive Distributions to launch a new loyalty initiative for its customers aiming to expand the bank’s digital footprint for KHQR payments acceptance across Cambodia.
The partnership was inked by Mach Chan, Chief Executive Officer of Phillip Bank PLC and Dalton Wong, Chairman of Massive Distributions and President of IndoCham.
Also present to witness the signing were CEO of Massive Distributions Victor Kaw and member of Phillip Bank’s Senior Management Team, Lee Yong Man. Invited guests included Ong Teong Hoon, Director and Shareholder Representative of Phillip Bank, friends, key merchants and business associates of both organizations.
According to Massive Distributions, the firm will launch the program to better serve the bank’s customers across all its banking and insurance products, as well as to promote a greater and wider acceptance of digital payments through the bank’s e-wallet.
Phillip Bank will be one of the first commercial banks in Cambodia to roll out a group-wide loyalty program for its customers.
Speaking at the launch Mach Chan commented: “The partnership is a strong testament to the Singaporean-owned bank’s digitalization efforts and its commitment to provide a safe, convenient, secure and rewarding financial service to its customers. In line with the bank’s objective to improve customers’ personal banking experience, Phillip Bank’s customers will be able to earn loyalty points when they sign up for products and services with the bank.”
“Through the digitally managed loyalty program on the Phillip Mobile App or on their internet banking web page, Phillip Bank’s customers will be able to use the loyalty points to redeem vouchers for F&B, hotel stays, fashion products, consumer electronics and many other consumer and lifestyle products and services from various participating merchants,” he added.
To read more about how Phillip Bank is working with partners to increase its digital ecosystem click here.
Loyalty systems a new concept for Cambodia’s banking sector
Loyalty systems or programs is a new concept in Cambodia and is expanding rapidly across industries. Currently, Massive Distributions is providing and setting up loyalty systems and program management for banks, e-commerce platforms, hotels and resorts as well as large conglomerates in Cambodia.
According to a study cited by the firm, loyalty systems and programs that are implemented and managed in a systematic and efficient way can help businesses increase purchases of their products and services by 20% and greatly improve customer retention.
They added, loyal customers, are 80% more likely to choose their preferred brand over competitors and twice as likely to recommend the brand to their friends. The key to loyalty lies in maintaining a strong foundation of program management whereby the system provides a platform and necessary functionality and acts as an enabler to loyalty.
E-payments are a major driver of Cambodia’s digital economy
A real-world example of the concept was showcased recently after the announcement Phillip Bank will provide a seamless digital payment solution to all the 30 KOI outlets in Cambodia through the KHQR, allowing customers of almost 20 banks to purchase KOI’s beverages by scanning and paying through their mobile app.
According to a recent UN report, digital payments and transfers are considered a foundation for any digital economy.
“In Cambodia, the growth trajectory of cashless transactions has been largely mobilized by people-to-people financial flows, which have vastly increased in the past half-decade following enabling regulations, rapid technological developments, and the steady expansion of a robust mobile money agent network,” the report stated.
To read more about how Massive Distributions is working with other payment providers click here.
E-payments in Cambodia have continued a strong upward trend with data from the National Bank of Cambodia revealing there were 698.8 million transactions, valued at $199.76 billion in 2021 as more companies utilize e-payment technology.
The central bank’s annual review stated that during the COVID-19 pandemic, e-commerce transactions and electronic payments methods increased significantly.
Electronic payment systems played a key role in facilitating both domestic and international fund transfers and trade payments, as well as in preventing COVID-19 from spreading via direct contact, they added.
In the same report some of the concerns for digital payments in Cambodia include a lack of digital IDs and interlinked databases as well as a robust grievance redress mechanism, according to key findings.