Cambodia Insight
Cambodia’s economy is experiencing rapid growth, highlighting the increasing importance of the financial industry. In this context, local banks are seeking new opportunities through digital transformation and customer-focused services. Today, we had the privilege of speaking with Mr. Raymond Sia Say Guan, the CEO of Canadia Bank, to discuss these changes and challenges. Through this interview, we will explore the current state and future of Cambodia’s financial market, while also delving into the bank’s relationship with Korean customers.
1. Could you introduce the recent regulations and issues in Cambodia’s financial sector, and how is Canadia Bank responding to them?
The recent regulations in Cambodia’s financial sector, issued by the National Bank of Cambodia (NBC), include guidelines for credit restructuring to assist customers facing financial challenges during the economic slowdown and a reduction of the capital buffer requirement from 2.5% to 1.25%. In response, Canadia Bank is leveraging these measures to support our customers by restructuring loans to those currently facing cashflow challenges. We have provided credit restructuring support to deserving clients impacted by economic challenges, balancing business opportunities with prudent risk management. This allows our clients to have financial flexibility and improve their cash flow management. At the same time, we have also strengthened our lending practices to ensure improved loan quality and expanded our collection team to manage delinquent loans effectively, keeping our non-performing loan (NPL) ratio within a manageable range.
2. Digital payments and settlements have rapidly expanded since COVID-19, with QR payments becoming central to transactions. How is Canadia Bank adapting to this shift?
In response to the rapid expansion of digital payments since COVID-19, Canadia Bank has launched a new version of our mobile app in February 2023 with continuous enhancements to serve the needs of our customers. The app offers various functions, such as self-account opening and KHQR, to improve the customer experience. Recently, we implemented cross-border QR payments with Thailand and Vietnam to provide greater convenience for our customers.
To advance our digital journey, we have established a Digital Business team dedicated to designing innovative products that ensure a seamless financial experience for our customers.
Read More: Canadia Bank is Twice Recognized by Euromoney as Best Bank for Corporates
3. Enhancing customer experience has emerged as a critical challenge in the financial industry. What strategies does Canadia Bank employ in this regard?
At Canadia Bank, customers come first. We exist to serve our customers’ needs. We prioritize enhancing customer experiences through a customer-centric culture and extensive employee training. Our Relationship Managers and Officers receive ongoing training in product knowledge, credit assessment, and client-relationship management to ensure customer satisfaction. We offer personalized services at our branches, including Premier Services at strategic locations, and provide 24/7 customer support via our contact center.
Embracing digital transformation, we offer seamless banking through the Canadia Bank App, Corporate Internet Banking, and Smart Bank Centers, which feature modern facilities and self-service digital devices. Our network includes 68 branches in Cambodia, 3 in Laos, and numerous local and international partnerships. To further enhance convenience, we partnered with True Money, a leading regional fintech, allowing customers to use its network of 10,000 agents nationwide for loan repayments and cash transactions.
4. Despite high mobile penetration in Cambodia, the percentage of the population owning bank accounts remains low, leading to the growth of alternative payment methods. How does Canadia Bank view this situation?
We view the low bank account ownership in Cambodia as both a challenge and an opportunity for growth. To enhance financial accessibility, we have implemented self-registration for digital accounts, allowing customers to open accounts without needing to visit a branch. It is equally important to promote financial literacy by collaborating with relevant companies and entities to educate the population on banking benefits. Additionally, we partnered with mobile operators and money remittance companies to integrate services, aiming to reach underserved communities and foster greater financial inclusion.
5. Globally, AI (Artificial Intelligence) and Big Data technologies are becoming central to the financial sector. Does Canadia Bank have any plans related to these technologies?
Canadia Bank has begun exploring the potential of AI and Big Data in various areas. We are conducting preliminary impact analysis and feasibility studies for initiatives in Risk Management, Marketing, and Cyber Security.
6. SME (Small and Medium Enterprise) play a vital role in Cambodia’s economy. Does Canadia Bank have any financial programs to support SME? If so, what have been the outcomes, and what are the future plans?
For over 33 years, Canadia Bank has supported Cambodia’s SME sector with tailored financial programs. These include SME term loans for long-term investments, the Smart Lady Program for women entrepreneurs, and the Green Financing Program for eco-friendly businesses. Our Unsecured SME Program, in partnership with the Credit Guarantee Corporation of Cambodia (CGCC), offers flexible funding with reduced collateral requirements. We also provide trade finance facilities like Letters of Credit, Bank Guarantees, and Bill Receivable Discounting to help SMEs manage import-export activities and expand internationally.
We enhance SME convenience with digital solutions such as the Merchant App, Corporate Internet Banking, Canadia Bank App, and e-commerce payment systems. Our remittance services support seamless financial transactions. Moving forward, Canadia Bank is committed to refining existing programs and introducing new initiatives to meet the evolving needs of SMEs, ensuring they thrive and contribute to Cambodia’s economic growth.
7. What is the relationship between Canadia Bank and fintech companies or startups created by young entrepreneurs in Cambodia? Do you offer any financial services tailored to their needs?
We recognize the vital role of fintech companies and young entrepreneurs in driving innovation and economic growth in Cambodia. Through our SME programs, Canadia Bank provides tailored financing solutions for startups and business expansion, ensuring access to capital. Collaborations with organizations like the Young Entrepreneur Association of Cambodia (YEAC), Cambodia Women Entrepreneurs Association (CWEA), and the Federation of Associations for Small and Medium Enterprises of Cambodia (FASMEC) demonstrate our commitment to supporting SMEs and startups. To address collateral challenges, we offer unsecured loan options for easier access to funding. Additionally, we support capacity-building initiatives by providing and sponsoring financial literacy workshops. We partnered with Cambodia University of Technology and Science (CamTech) to provide advisory services and training, bridging the gap between academy and industry. This would facilitate graduates to be equipped with the technical and entrepreneurial skills needed in today’s workplace.
Understanding fintech’s potential to enhance financial inclusion, Canadia Bank actively explores partnerships with innovative fintech companies to develop customer-centric solutions. Recently, we signed a strategic partnership with GIZ through its Improved Competitiveness of National Enterprises (ICONE) program to provide SMEs in Siem Reap, Battambang, and Banteay Meanchey with tailored financing options, promote financial literacy, and enhance access to capital markets.
8. Has Canadia Bank recently launched any new financial products? If so, what are their key features, and how have customers responded to them?
Product innovation remains a top priority in our Bank. We continuously introduce innovative deposit and loan products to enhance convenience and customer satisfaction. For individuals, we offer more competitive interest savings accounts for NSSF members, flexible savings options like the Prathana Account, mobile app account reactivation, and enhanced payroll services. Our loan products include secured personal loans with competitive rates and specialized financing for migrant workers preparing for employment in countries like South Korea, featuring competitive interest rates and no collateral requirements. We also bundle life, fire, and health insurance with our banking services for a comprehensive financial solution.
For SMEs, we provide tailored financing products and digital banking solutions to support growth. Key offerings include the SME Smart Lady+ program for female entrepreneurs, the Green Financing Program for eco-friendly initiatives, and guaranteed loans through the Credit Guarantee Corporation of Cambodia (CGCC). The Rice Export Guarantee Scheme supports rice millers and exporters.
Our enhanced digital channels, including Canadia Bank App, Corporate Internet Banking, self-service digital machines, and digital payment solutions, are particularly well-received by younger, tech-savvy customers seeking convenience and efficiency.
9. Korean individuals and businesses hold a significant presence in Cambodia’s economic landscape. What is Canadia Bank’s relationship with Korean customers and companies?
Canadia Bank is proud to be a trusted financial partner for the Korean community in Cambodia. We have a dedicated team of Korean nationals in our Foreign Business Division under the supervision of Mr. Byung Soo Moon, Senior Vice President, to serve the needs of our Korean customers. Over the years, we have built strong and valued relationships with Korean businesses, investors, and individuals, reflecting our commitment to their success. Our diverse client base spans various sectors, including construction, trading, real estate, and food and beverage. We offer a comprehensive range of services, including deposits, loans, trade financing, remittances, payroll, and digital payment solutions, tailored to meet the unique needs of our Korean customers.
10. Korean banks are actively operating in Cambodia’s financial market. What specialized services does Canadia Bank provide to Korean customers and businesses?
We are dedicated to providing specialized services tailored to Korean customers. Our Foreign Business Division employs several bankers of Korean nationalities who offer personalized VIP customer service, which include deposits and loan products and investment consulting. Additionally, we ensure that our digital banking solutions meet the needs of Korean businesses, offering safe, efficient, and convenient financial services. Our commitment extends to leveraging our deep understanding of the local market to support the success of Korean enterprises in Cambodia. Beyond providing banking services, we actively offer opportunities for collaboration and investment in various sectors such as trust services, joint venture consulting, investment advisory, legal and tax advisory, foreign language translation, and document preparation support by leveraging on our Group companies, such as Canadia Securities and Cana Trust.
11. Investments and activities of Korean companies are increasing in Cambodia. Does Canadia Bank have any plans or strategies for collaboration with these companies?
We are actively developing strategies to enhance collaboration with Korean businesses operating in Cambodia. We aim to provide comprehensive investment
advisory services and facilitate partnerships across various industries, ensuring our Korean clients receive the best possible opportunities for growth. Furthermore, we maintain close relationships with the Korean Embassy, Korean Association, and various Korean organizations to better understand the needs of the Korean business community and provide tailored financial solutions. Our focus is on becoming a strategic partner for Korean investors by combining our local expertise with innovative product and services and cutting-edge digital financial solutions.
12. Lastly, is there any message you would like to convey to your Korean customers and potential customers who are considering using Canadia Bank?
At Canadia Bank, customers’ trust, satisfaction, and safety are our top priorities. These are the foundations built over three decades by our visionary Chairman of the Board, Lok Neak Okhna Dr. Pung Kheav Se. We leverage our deep market knowledge to provide valuable insights to our customers and are committed to safeguarding their assets while offering sustainable and secure financial solutions. As a local bank with extensive knowledge of the Cambodian market, we aim to go beyond banking by offering comprehensive support and expertise to all Koreans in Cambodia, whether in finance, investment, or other areas of business. Through close collaboration with the Korean community, we aspire to be a customer-centric bank that provides unparalleled service and partnership for Korean individuals and businesses.
This article is also available in Korean via our partner platform Cambodia Insight.
