Cambodia Unveils New Fintech Development Policy

The Cambodian government has launched the Cambodia Financial Technology Development Policy 2023-2028. The strategy aims to boost financial innovation, maintain financial stability, and enhance financial inclusion. The launch event, held in October, was presided over by Aun Pornmoniroth, Cambodia’s Deputy Prime Minister and Minister of Economy and Finance.

Stakeholders Gather for Policy Launch

During the launch, a workshop was held, attended by officials from various sectors of the fintech ecosystem. The workshop sought to raise awareness about the policy and encourage the development of fintech in Cambodia. Aun Pornmoniroth used this platform to provide five recommendations for the effective implementation of the new policy, emphasizing the importance of clear action plans, capacity building, and collaboration.

Policy Objectives and Implementation

The Cambodia Financial Technology Development Policy 2023-2028 is devised to foster Cambodia’s fintech industry by creating a favorable environment for its growth. The government expects that the development of the fintech sector will help drive the evolution of the country’s digital economy and society.

The policy outlines four main objectives: the development of policy enablers, digital enablers, the promotion of the use of enabling technologies, and the fostering of fintech activities. A total of 52 policy measures will be implemented to reach these goals.

The National Bank of Cambodia and the Non-Bank Financial Services Authority will lead the implementation of the plan. Other ministries and public institutions, under the coordination of the Digital Economy and Business Committee, will also collaborate to ensure the successful deployment of the strategy.

Potential Impact on Fintech Landscape

Sisavuthara Sim, founder and CEO of Nexus Capital and Investment Advisory, believes the new policy will introduce a new era in Cambodia’s fintech landscape. He suggests that the strategy will provide greater regulatory clarity, attracting foreign fintech firms and investors.

Sim sees the potential for the new fintech policy to increase both foreign and local investment in the sector, and to foster skill-sharing among local entrepreneurs.

Despite having a young, tech-savvy population and a high percentage of unbanked individuals, Cambodia’s fintech sector is less developed compared to Southeast Asian neighbors like Singapore, Indonesia, and Vietnam. This new policy aims to leverage these advantages and stimulate the sector’s growth.

Digital Payment Usage on the Rise

The launch of the new fintech policy aligns with a period of growth in digital payment usage in Cambodia. According to the National Bank of Cambodia, the total number of transactions increased from 708 million to 1 billion in 2022, representing an increase of 34% over a year. The number of e-wallet accounts also saw a significant increase, jumping from 13.6 million in 2021 to 19.5 million in 2022.