Cambodia Investment Review
Credit Bureau Cambodia and VTrust Appraisal have officially launched the Digital Real Estate Appraisal (Indication Plus Platform) – the first of its kind digital-based property valuation service in Cambodia – for financial institutions across the country enabling convenient, affordable and efficient property valuation for credit assessment using latest digital and analytics technologies.
The product was launched during an official ceremony at the 10th Anniversary Business Forum of CBC; with the presence of senior representatives of the National Bank of Cambodia, ministries, CBC, VTrust as well as banks and financial institutions.
To read more about the 10th Anniversary Business Forum of CBC click here.
Being the first digital real estate appraisal platform in Cambodia, Indication Plus has become a ‘one stop shop’ which is an integrated technology platform that adds huge value to the property collateral valuation.
Mr. Vong Sokhal, Chairman of VTrust Appraisal has said the agreement with CBC will enable the company to digitalize property valuation across the financial industry in Cambodia for wider access to finance for Cambodians. He went on to state that the move will help to build a vibrant digital economy and society, and further promote the Kingdom’s economic growth.
“As Cambodia is digitalising at a rapid pace, we have combined our almost two decades of experience in property valuation with latest technologies to benefit the Cambodian borrowers as well as lenders through convenient and affordable property valuation,” he emphasized.
According to industry insiders, property collateral valuation has played its crucial part of credit risk assessment for financial institutions as well as borrowers in Cambodia.
Mortgages comprise more than 50% of overall consumer credit
CBC reports indicate that mortgage also comprises more than 50% of the overall consumer credit balance portfolio. Additionally, more than 50% of the financial industry’s lending is secured loan and majority of which is backed by land title-based collateral. With the dynamic growth of real estate as well as credit markets in the country, digital real estate appraisal is playing an important role in credit risk management.
The digital real estate appraisal solution relies on extensive real estate data compiled historically through extensive years of operations of VTrust powered by latest data analytics modelling.
To read more about Cambodia’s 2022 real estate trend click here.
In order to use this service, lenders simply need to access the digital platform and submit property details such as location, area, dimensions and images. The system will digitally assess the input information and generate an indicative value of the property which can be used for collateral valuation.
As this valuation method does not require field visits and the whole process can be completed digitally, this is more affordable and convenient to lenders. This service will be available as a Value Added Solution of CBC to its member financial institutions. As a Value Added Solution, this will be offered only on demand from members.
CBC is committed to harnessing digitalisation and data analytics
Mr. Oeur Sothearoath, CEO of CBC expressed, “CBC is committed to harnessing digitalisation and data analytics to enable quick and frictionless decision-making for our members to quickly make credit risk assessments and decisions.”
“Digital Real Estate Appraisal through our collaboration with VTrust will be an important addition to our portfolio of Value-Added Solutions to enable our members to quickly assess credit risks using credit histories and property valuation to make loan decisions conveniently and quickly,” he added.
Over the last few years, the financial sector has gone rapid digital transformation. Automated loan decisioning systems are increasingly being adopted. Digitalisation of credit risk management is also evolving in the country.
In this changing landscape, digitalising real estate appraisal and offering it under a diverse portfolio of CBC’s Value Added Solutions that helps lenders in multiple stages of loan management cycle will significantly enhance the operational efficiency for financial institutions in Cambodia.
To read more about CBC’s midterm economic outlook click here.
Credit Bureau of Cambodia (CBC) has made a medium-term outlook for Cambodia’s total loan balance forecasting it to grow from $48 billion in 2022 to $119 billion in 2027, representing a 147% growth over five years.