Cambodia’s Fintech 2021: 10 Key Trends that Will Shape the Fintech Industry
Cambodia’s fintech sector continues to thrive on the back of favorable digitization trends, strong demographics, and consumer preferences, despite uncertainties in the global epidemic.
In this report, MSP highlights ten key trends that will shape the landscape of the fintech and banking sector for years to come.
Increased investments in digital banking channels Incumbent financial institutions are investing heavily in digital channels to strengthen competitiveness. Local banks and foreign-owned banks with local IT autonomy tend to be significantly more agile, and this will provide a key competitive advantage for those banks.
Embracing strategic partnerships New fintech startups and incumbent financial institutions are embracing strategic partnerships to co-create innovative solutions.
Gateway and Payment Service Institutions expanding the connection options between Customers and Merchants Traditional bank networks are expanding through partnerships with gateways and PSIs, who bring their own networks and capabilities to the ecosystem.
Increased acceptance of digital payments The COVID-19 outbreak has accelerated the acceptance of digital payments for merchants and consumers, underpinned by the rise of e-commerce, and convenience offered by contactless and QR payments.
Penetrating the Consumer and MSME segments Merchant acquisition through digitizing micro, small and medium enterprises (MSMEs) has become increasingly competitive. Banks and fintech startups are partnering to offering innovative solutions to service this market segment.
Leveraging Cloud Computing to drive digital transformation Incumbent financial institutions and new fintech startups are embracing the Cloud to operate efficiently and transition from traditional on-premise models to adapt to market trends faster.
Standardizing Quick Response (QR) Code for digital payments Cambodia currently has a fragmented QR code payment market, however the standardization and drive for a common QR code for digital payment is being driven by the central bank.
Electronic Know-Your-Customer (e-KYC) is on the horizon Online verification will allow customers, particularly the unbanked population, to access various digital financial products through their electrotonic device, bypassing the need for traditional face-to-face verification.
Strengthening interconnectivity through Project Bakong Project Bakong is driving interconnectivity and interoperability among participating institutions to enable real-time fund transfers and lower transaction costs.
Bracing for M&A as competition heats up Cambodia’s fragmented digital payment space will give room for several key players to emerge as winners. Competition and scale will encourage consolidation amongst the smaller players.
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