According to a news report by the Startup Kingdom, Cambodian fintech platform is growing ‘incredibly fast’ despite almost 78 percent of its population unbanked.
Currently, there are more than 50 fintech companies which are active. The digital platform sector is already the largest when it comes to the startup landscape.
In the report, it is also indicated that Cambodia’s fintech sector has developed in terms of digital payments, digital banking, and software-as-a-service (SaaS).
Fertile ground for Fintech
Some experts say that Cambodia is already ripe when it comes to the adaptation of technology in the financial sector. However, there is still a need for stakeholders and entrepreneurs to collaborate and introduce a different means of payment to customers and other small merchants.
In addition to this, big institutions can give a go signal to smaller enterprises and wake them up to the opportunities that await when digitization is involved.
More than this, the report by the Startup Kingdom urges the Cambodia government agencies to create regulations to strengthen legal policies when it comes to tech companies. Right now, there has been limited policies on these areas, hence, startup firms also struggle.
In an article published by Smart, it is said that Cambodia’s Ministry of Posts and Telecommunications is already aiming at the innovation in the financial sector.
“The Ministry of Posts and Telecommunications are in the process of formulating a policy which will help spur innovation, promote tech startup and MSME sectors as well as provide an opportunity for Cambodia youth, in line with the Royal Government’s Rectangular Strategy IV,” said Tram Iv Tek, Chairman of the CBRD Fund Board.
In ASEAN countries, Cambodia is positioned as the least country with fintech infrastructure compared to leading countries like Singapore and Indonesia. While there is strong progress in number, Cambodia needs to create policies that can benefit both investors and consumers.