In this article we discuss the new Fintech Policy in Cambodia, which will run between 2023-2028 and provide a pivotal framework shaping the trajectory of the nation’s fintech sector. 

This strategic policy is a significant component of the government’s commitment to realizing the “Cambodia Vision 2050” and fostering financial inclusion. For more information about the new policy and legal framework in Cambodia, view our library of laws designed to facilitate business and investment in the Kingdom. Alternatively, get in touch with one of our expert team.

What does the Fintech Policy in Cambodia outline in its vision?

The preamble of the Cambodia Fintech Policy 2023-2028 articulates a forward-looking vision: “To cultivate a dynamic digital economy and society by laying the groundwork for digital adoption and transformation across all societal elements, including government bodies, citizens, and enterprises. This initiative aims to expedite fresh economic growth and enhance societal well-being in the era of the ‘new normal’.”

The Cambodia Fintech Policy 2023-2028, developed in July 2023 by the Digital Economy and Business Committee, aims to drive technological advancements across Cambodia’s digital economy and society, spanning both banking and non-banking domains. The policy serves as a strategic roadmap for leveraging cutting-edge technologies within the local financial industry and the fintech realm.

How many points are outlined in the new Fintech Policy in Cambodia?

The comprehensive new fintech policy in Cambodia is structured around 52 distinct measures, grouped into three categories: adoption, adaptation, and further innovation. 

These measures are designed to be accomplished within a five-year timeframe, with 19 policy enablers, 12 digital enablers, 12 measures focusing on promoting the utilization and development of enabling technologies, and 9 measures aimed at encouraging the development and innovation of fintech activities.

Among the 12 measures outlined in the policy to promote the utilization and development of ‘Enabling Technologies’ are the incorporation of artificial intelligence (AI), machine learning (ML), big data, cloud computing, blockchain technology, smart contracts, natural language processing (NLP), virtual reality technology, and data analysis technology to instigate innovation in the financial sector.

What will be the advantages of the new Fintech Policy in Cambodia?

The Cambodia Fintech Policy 2023-2028 is anticipated to bring about numerous advantages for Cambodia’s economy, including:

  • Enhanced Financial Inclusion: This policy aims to expand access to financial services for all Cambodians, encompassing those residing in rural areas and those who are unbanked or underbanked.
  • Increased Operational Efficiency: The integration of digital technology in the financial sector is poised to heighten operational efficiency while reducing costs for both consumers and businesses.
  • Promotion of Competition: The Fintech Development Policy will stimulate competition among financial service providers, fostering the development of superior products and services for consumers.
  • Attracting Investment: It is expected to attract more investment in Cambodia’s fintech sector, potentially leading to job creation and economic growth.
  • Improved Regulatory Framework: The policy endeavors to establish a regulatory environment that fosters innovation while maintaining the stability of the financial sector.

Who will oversee the new Fintech Policy in Cambodia?

The policy’s implementation will be overseen in collaboration with the National Bank of Cambodia, the Non-Bank Financial Services Authority, and relevant ministries and institutions. The Digital Economy and Business Committee will play a pivotal role in researching emerging fintech activities.

What does the government say about the new Fintech Policy in Cambodia?

Aun Pornmoniroth, the Minister of Economy and Finance and the chairman of the Digital Economy and Business Committee, expressed his confidence at the policy’s launch, stating, “I firmly believe that the implementation of the policy will help Cambodia harness the potential of digitalizing the financial sector, offering opportunities to all stakeholders to contribute to Cambodia’s digital economy and society.

The minister stated this evolution can be achieved by three primary activities: The deployment of digital systems as a cornerstone for economic growth; digital technology acting as a catalyst to bolster various economic sectors; and leveraging digital means to link local businesses and investors to international production chains to inspire innovation in product and service offerings.

Drawing an analogy to a fintech tree, he stated the policy encompasses four primary objectives: Environmental enhancement and supportive policies (symbolised by “soil”); fostering a digital foundation (depicted by “roots”); championing the adoption and evolution of auxiliary technologies (represented by “tree”); and advocating for the development and innovation of fintech operations (signified by “branches”).

What is the value of the Fintech Sector in Cambodia?

According to the National Bank of Cambodia (NBC), e-wallet accounts surged from 13.6 million in 2021 to 19.5 million by the end of 2022. Digital payment transactions reached an astounding one billion, totaling USD $272.8 billion, which is nine times Cambodia’s GDP, as reported in the NBC’s Banking Supervision Report 2022.

In 2023, digital payments are poised to experience remarkable growth, with total transactions projected to reach USD $4,374 million, and user numbers expected to reach 8.76 million by 2027. Recognizing the importance of regulations and policies in sustaining this growth, the Cambodia Fintech Policy 2023-2028 is primed to play a pivotal role.

The government has also taken proactive measures to boost fintech development, including the establishment of the FinTech Regulatory Sandbox to facilitate the testing of new products and services. Collaborative efforts with international organizations for technical assistance and support are underway.

The policy itself highlights that compared to other countries in the region, Cambodia’s fintech status is not trailing but rather holds potential for further growth. Ensuring Cambodia’s competitiveness in digital solutions and financial technologies is vital, particularly in the context of the Asia-Pacific region’s forecasted rise as the world’s leading fintech market by 2030, according to a report by Boston Consulting Group (BCG) and QED Investors in 2021. Investments in fintech firms within ASEAN countries exceeded USD $4 billion in 2022, with the region’s digital economy projected to reach USD $330 billion by 2025.

How do I get more information about the new Fintech Policy in Cambodia?

You can visit the relevant government website’s or you can feel free to get in touch with Aquarii to see how this new policy could affect your current business, or open up new opportunities within the market.