Cambodia Investment Review
The National Bank of Cambodia (NBC), the Cambodian Association of Finance and Technology (CAFT), and the Association of Banks in Cambodia (ABC) jointly led an influential Cambodian delegation to the Inclusive Fintech Forum held in the city of Kigali from June 20 to June 22, 2023. The international event, designed to encourage dialogue and collaboration around strategies for inclusive and sustainable FinTech development, shone a spotlight on the robust Cambodian digital financial ecosystem.
A broad array of international participants, including policymakers, entrepreneurs, investors, corporations, and foundations, converged for this three-day event. The objective was to align on strategies, policies, and partnerships to harness the transformative power of technology and accelerate the advancement of financial inclusion.
The Cambodian delegation, under the leadership of NBC, championed the cause of digitalization as a significant driver of financial inclusion. Their presence at the forum emphasized their commitment to collaboration and knowledge-sharing as critical enablers for building an inclusive financial ecosystem.
Blockchain and smart contracts are on the horizon
CAFT Chairman, Remi Pell, delivered a persuasive presentation highlighting the current scenario and future prospects of the Cambodian fintech sector. Pell highlighted the dominance of mobile wallets and payment providers in the country, spurred by an explosion of e-commerce and a rapid increase in contactless transactions. He also underscored the expected emergence of new players in Insurtech, Regtech, and Neobank sectors, emphasizing that blockchain solutions and smart contracts are on the horizon as revolutionary tools in the financial landscape.
Speaking on the pressing need for skilled professionals, innovators, and entrepreneurs in the blockchain domain, Pell said, “We acknowledge the existing skills gap in these sectors. Yet, we see a wealth of opportunities lying within blockchain technology, which can be leveraged for transparent smart contract solutions and applications across various sectors.”
A highlight of the Cambodian delegation’s contribution was their focus on the Bakong Payment Service, a ground-breaking initiative from the NBC. This service has caused a seismic shift in the country’s retail payment landscape, allowing customers to effortlessly carry out cash transactions across an extensive network of banks and financial institutions.
Optimism for expanding ‘Bakong’ outside Cambodia
H.E. Dr. Serey Chea, Deputy Governor of the NBC, has shared optimism for expanding the operations of the Bakong blockchain-based payment system to other countries. This ambitious strategy aims to boost tourism, investment, trade, and inbound remittances, while also encouraging the use of the local currency.
Chea has previously told local media, “The Bakong system represents a paradigm shift for financial inclusivity in Cambodia. It opens doors for less affluent rural residents to access formal financial services, thereby contributing significantly to our financial inclusion strategy.”
By the conclusion of the Inclusive Fintech Forum, the Cambodian delegation had made a significant impression. Their compelling demonstration of the rapid progression in Cambodian fintech and readiness to embrace the future of digital finance resonated powerfully with participants.
Looking beyond the forum, the delegation left with strengthened partnerships, expanded knowledge, and renewed dedication to Cambodia’s digital transformation journey. This dedication was made evident by the establishment of the General Department of Digital Economy under the Ministry of Economy and Finance, indicating the country’s commitment to the efficiency and effectiveness of digital management and development.
The association’s future plans and initiatives
Speaking to Cambodia Investment Review after the event Tomas Pokorny, Board Member of CAFT, shed light on the association’s future plans and initiatives. “CAFT is poised to continue driving its next efforts via events, meetings, and other meaningful trade and exploratory commerce and collaboration missions. This strategy, akin to our successful initiative in Kigali from and to Cambodia, signifies an exciting chapter for the upcoming growth in the tech, fintech, and finance sectors,” said Pokorny.
Tomas also highlighted the association’s commitment towards making Cambodia a leading destination for fintech innovation and investment, citing the delegation’s success in Kigali as proof of their hard work and dedication. “Our success in Kigali is a testament to CAFT and its members’ dedication. We are fueled by a rejuvenated passion and drive for the industry, positioning us as potential leaders in Cambodia’s digital transformation journey,” he elaborated.
Pokorny further detailed CAFT’s specific strategies to drive these efforts. “We aim to organize more events and meetings to bring together industry leaders and stakeholders. In addition, we will conduct research and analysis to identify new opportunities for fintech innovation. One of our key objectives is to develop educational programs that will train the next generation of fintech professionals. We will also advocate for policies that support the growth of the fintech sector.”
Expressing confidence in CAFT’s roadmap, Pokorny affirmed the association’s commitment to creating a vibrant and sustainable fintech ecosystem. “We believe that these strategic efforts will establish Cambodia as a leading destination for fintech innovation and investment. Our commitment is to work with all stakeholders towards a vibrant and sustainable fintech ecosystem,” he stated.
