Cambodia Investment Review
Technology has transformed the banking sector in Cambodia, leading to economic growth and the emergence of Wing Bank and its financial revolution through Bionic Innovations and Digital Loan.
In recent years, Cambodia has experienced a remarkable transformation in its banking sector, propelled by the integration of bionic innovations.
The fusion of cutting-edge technology with financial services has not only revolutionised the way people conduct banking, but also paved the way for financial inclusion and economic growth.
This article explores the transformative impact of bionic innovations on the banking landscape in Cambodia, with a specific focus on the contributions of Wing Bank.
Utilising Advanced Innovation Technology:
Wing Bank’s innovation technology has revolutionised customer service in the banking industry. Artificial Intelligence (AI) and Machine Learning (ML) based credit decisions have enabled Wing to make eligible one million customers by studying the data points from multiple business domains such as Banking and Telecom, among others.
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Wing Bank has developed a real-time decision engine that incorporates multiple underwriting scorecards that have been statistically developed and monitored over time.
This real-time engine helps to approve a loan within seconds of the application and makes it hassle-free for customers.
The real-time decision engine simultaneously talks to, among others, the Credit Bureau of Cambodia (CBC) and multiple in-house databases before making a credit decision.
The bank has also developed an ancillary score based on inputs from CBC, which is called the internal Wings Score.
The internal Wings Score has been developed on the logistic regression model and also implements a real-time decision engine.
Bunthe Hor, the Deputy CEO of Wing Bank, said, We aim to expand loan services to all Cambodian customers, including those in remote regions, utilising AI technology. This speeds up loan approval and supports community growth.
Empowering Financial Inclusion:
Wing Bank has been at the forefront of driving financial inclusion in Cambodia. Recognising the challenges faced by underserved populations, especially those in rural areas, Wing Bank’s digital banking platform has expanded access to formal financial services.
By offering services such as account opening, fund transfers, bill payments, and microloans through its mobile app, Wing Bank has enabled individuals previously excluded from traditional banking systems to participate actively in the economy.
This has paved the way for increased savings and entrepreneurship and facilitated economic growth in previously marginalised communities.
Bunthe Hor said, We have been able to whitelist customers to have a chance to avail of digital loans. We plan on creating mass awareness campaigns to promote this as we strive to build our digital capabilities by expanding our message and growing our user base.
Enhancing Accessibility and Convenience:
Wing Bank’s mobile banking app offers easy and convenient access to financial services, making it a top choice in Cambodia for both individuals and businesses, with the bank proud to be able to provide such a helpful and accessible tool to its customers.
And this innovative mobile banking platform lies at the heart of Wing Bank’s success. Via a simple and user-friendly mobile application, customers can perform a wide range of financial transactions, including money transfers, bill payments, and mobile top-ups.
This convenience has revolutionised the way Cambodians manage their money, especially in rural areas where access to physical bank branches is limited.
Furthermore, Wing Bank’s platform goes beyond basic banking services, it has integrated additional features such as micro-loans, insurance, and savings accounts, empowering individuals to build financial stability and plan for the future.
This comprehensive suite of services has not only improved the lives of individuals, but has also boosted economic growth and development across Cambodia.
Bunthe Hor, expressed his excitement at being part of bringing about greater financial inclusion for Cambodians, The integration of cutting-edge technologies, such as mobile banking apps, biometric authentication, and digital payment solutions, has transformed the way people manage their finances.
Enhancing Identity Solutions and Verification of Customer Documents
As a member of CamDX, Wing Bank is bolstering its electronic Know Your Customer (e-KYC) capabilities. This is achieved by enabling instant verification of customer KYC documents against the Ministry of Interior database in the Kingdom of Cambodia. The integration of this system provides advanced security measures and aids in preventing fraudulent activities.
The e-KYC technology from CamDX allows organizations to digitally verify customer documents by cross-referencing them with validated databases. Implementing robust and secure e-KYC capabilities aligns with the Cambodian Governments Digital Economy and Society Policy Framework 2021 – 2035. This alignment represents a key objective for the banking sector.
Additionally, Wing Bank is utilizing liveliness and facial detection technology. This technology is widely used and is integrated into one of the government-sponsoring funds under program “Inflation and Flooding” program. The program is designed to enable individuals with limited financial knowledge to safely access financial services through Wing agents. The system ensures secure transactions by detecting the individual’s face and comparing it with the ID photo.
Revolutionising Payments:
The Bakong platform, a backbone payment system that facilitates interoperability among different banks and financial institutions, has helped increase the efficiency of the payment system and promote cashless payments.
The QR code payment is safe, efficient, affordable, and inclusive, and to promote it, the KHQR Code Standard has been launched and on-site/off-site supervision is conducted.
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Strengthening payment service institutions and electronic payments are important goals for stability and public trust in the payment system.
In 2022, the Bakong backbone payment system had 69 members, of which 46 were in the production phase. A total of 0.52 million customers registered through the Bakong generic application, while compared to 2021, there were 26.1 million transactions, an increase of 2.2 times.
And Wing Bank, a leading innovator in Innovation technology, has helped transform the payments industry in Cambodia. By teaming up with merchants and businesses, Wing Bank has made digital payments more accessible.
Customers can conveniently pay through QR codes and mobile wallets, eliminating the need for physical cash. This move towards a cashless economy has made payments not only more convenient, but also safer. This has led to increased security in financial transactions, reducing the risks associated with carrying cash.
The Way Forward:
Cambodia aims to become a high-income country by 2050 through digital technology. The “Cambodia Digital Economy and Society Policy Framework 2021-2035” has three main pillars: digital citizens, digital government, and digital business, with building a digital government the first priority to enable digital transformation in response to the Fourth Industrial Revolution and Covid-19.
“As Cambodia continues to embrace and adapt to these bionic innovations, Wing Bank is poised to become a leading player in the region’s digital banking revolution, setting a strong example, Bunthe said.
While data privacy and security remain a priority while promoting financial literacy and access to banking services in remote areas, the banking sector has already benefited massively from digital technology, with Wing Bank and innovations leading the way.
