However, Cambodia’s Fintech economy has been growing steadily, mainly due to the increased adoption of digital payments and the need to serve a relatively large number of unbanked consumers.
Fintech is reportedly one of the largest tech categories in Cambodia. There are around 50 financial technology companies operating in the Kingdom, which has a population of more than 15 million.
The most represented Fintech segment in the country is digital payments, according to a report published by Mekong Strategic Partners and Raintree Development.
As reported by Fintech News Singapore, there are several promising financial technology startups offering services in the country, including Spean Luy, a company launched in 2016. Spean Luy is the creator and manager of a micro-loans mobile app, called Spean Loan.
Spean Loan lets borrowers apply for small loans, between $50 to $1,000, within minutes. The application does not require paperwork and applicants don’t have to visit a physical branch location to complete the process.
Spean Loan’s credit scoring system uses machine learning to assess a borrowers’ ability to pay back their loan.
Last year, Spean Luy secured $300,000 in capital via a round led by Japan-based Showcase Capital. The firm says it’s planning to expand its business operations across the Asian continent.
Clik Payment is another high-potential Cambodian Fintech firm that’s focused on creating a payment processing service, which aims to fix the nation’s fragmented payment sector.
Established in 2016, the firm’s service aggregates various payment methods and platforms under a single platform and interface. Clik Payment gathers transaction details, and offers insights on customers to vendors and retailers.
At present, Clik is waiting for regulatory clearance from the National Bank of Cambodia. If approved, the firm will introduce its services at some point this year.
Approximately 80% of Cambodia’s population is still unbanked, as of May 2019. Merely 3% of the nation’s residents currently own a credit card, and just 13% were using mobile-based payment, as of last year (but this may have changed due to the COVID-19 outbreak).
The rise of Fintech-related services in Cambodia has been “incredibly fast,” according to a report from 2019.
Some of the fastest developing Fintech sectors in the country include digital banking, online payments, and software-as-a-service (SaaS) for financial institutions.