Cambodia Fintech Report 2023

In our last report on Cambodia’s fintech landscape, we discussed how the country’s central bank, the National Bank of Cambodia (NBC), pushed the use of digital wallets and digital banking solutions at the peak of the COVID-19 pandemic. Since then, nationwide digital banking initiatives have taken off, with consumers and business owners quickly adopting these accessible and low-cost financial services.

The NBC introduced the Cambodian Shared Switch (CSS) system, which facilitates secure and effective electronic payments. More microfinance institutions were established in the country to provide financing opportunities through lending for small businesses. The NBC has connected over 23 financial institutions to offer payment flexibility and digital transactions.

Fintech Growth in Cambodia

Mobile payments are becoming more common in Cambodia as more people gain access to smartphones and internet connectivity. This has led to the rise of digital wallets and mobile banking services that allow customers to transfer money and make payments using their phones easily.

In 2023, digital payments are projected to experience the fastest growth in Cambodia’s fintech landscape. Total transaction value is expected to reach 4,374 million US dollars, and the number of users is projected to reach 8.76 million by 2027. Meanwhile, digital investments are also expected to log a revenue growth of 34.4% by 2024, with total transaction value expected to amount to 1.12 thousand US dollars in 2023.

One of the significant developments in fintech in Cambodia has been the growth of mobile banking services. Mobile banking allows users to perform various financial transactions, such as paying bills, transferring money, and checking account balances, using their mobile phones. This technology has increased financial access for people in remote or rural areas who may have yet to have access to traditional banking services.

In addition, fintech startups in Cambodia offer more alternative lending solutions, which are especially helpful for small and medium-sized enterprises that struggle to secure traditional bank loans. Peer-to-peer lending platforms, for instance, allow investors to lend money directly to borrowers, cutting out the middleman and reducing transaction costs.

Challenges and Opportunities in Cambodia’s Fintech Landscape

Cambodia has seen the emergence of fintech startups focused on specific areas such as remittance, insurance, and investment management. These startups are driving innovation in the fintech landscape and are helping create a more diverse and dynamic financial ecosystem in the country.

Despite the many opportunities in Cambodia's fintech industry, companies face some challenges in the country, such as limited access to funding and a need for regulatory clarity. However, the government has encouraged fintech development by creating the FinTech Regulatory Sandbox to test new products and services and partnering with international organizations to provide technical assistance and support.

Overall, the developments in fintech in Cambodia are helping increase financial inclusion and provide greater access to financial services for a broader range of people. As the country continues to develop its digital infrastructure, Cambodia's fintech landscape will likely continue to grow and play an increasingly important role in the economy.