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AC.LE,DA C.EO, helps Myanmar
ri ' .
create micro: 11nance assoc1ation
trip to Yangon
to attend a
micro finance
cenference '
sponsored by the MyaRmar
government and UNDF,
Channy was happy to learn
that his suggestion to set up
amicrofiriance association
had been taken Up a few days
later in the capital city of
Attending a conference
sponsored by the Myanmar
Ministry of Finance and the
UNDP on May 9 and 10 earlier
this monili. called !Emerging
Microfinance Sector in
Myanmar,, Regional Lessons
on Selected Issues, In Channy
suggested in order to have
good regulation in Myanmar,
they direct
dialogue between the public
and the private sector, like
Cambodia had done.
"I said they should form an
association of microfinance
so they could bring the issues
to their counterparts," In
Channy said. "The idea is that
Cambodia has good regulation
on microfi:nance, because
NBC opened direct di;tlogue
between public and private
sector, so we can talk and
After obtainiFlg a
microfinance license for
Myanmar in February,
ACLEDA Bank now has 448
microibusiness customers
and US$57,000 equivalent
in outstanding loans, with
338 accounts and a deposit
balance of $16,000 in savings,
according toln Channy.
The Myanmar office of
ACLEDA Microfinance :
employs 45 people, including
35 Myanmar staff and 10 .
"Next month we plan to
send 20 people from Mycinmar
to train in Cambodia. We will
do a six week training, with
three weeks in the field," he
There are 142 licensed
microfinance enterprises
licensed in Myanmar which
are local, and two one
ACLEDA and the other Aeon
The Myanmar Microfinance
(MM$E) operates under
Myanmar's Ministry of
Finance and Revenue which
oversees the Central Bank,
which .in turn regulates
.commercial banks.
also the same ministry,
but in a different department.
In Channy sat down for an
interview last week, having
just returned from his three-
day trip to Myanmar.
"My suggestion for
microfinance in Myanmar was
that to have goodiregulation
we should have direct
dialogue with private sector,
and' I said you should fprm a.n
association of rnicrofinance,
and they can bring issues to
their counterpartS," Channy
Within Cambodia, In
Channy says ACLEDA Bank
' has grown intothe position
of market leader because
oflistening carefully to
customers and implementing
their suggestions when
''ACLEDA is the larnest
because we listen to our
customers. The customers
have provided good
suggestions and we care about
them and focus on what they
need. They <!.dvise us to have
more financial products, and
we introduce new products
and services based on
customer needs," he said.
In 2000, ACLEDA had
14 branches and has since
expanded'to 238.
"The customers asked
us to expand to the district
level and some districts are
remote, so we needed more
branches at the commune
level. Then we added ATM
machines .that function 24
hours so people can access
their accounts on a daily
basis," In Channy said,
The next service introdueed
was ACLEDA Unity whereby
account holders could use
their mobile phones froip.
home to perform funds
transfers, check balances, pay
suppliers and bills.
"This is the product of
listening to the customer and
implementing it. In our case
we listern, especially if the
customer suggests it. We know
our customers are working
with other banks, and they
have ideas and experiences,
up capital of $72.5 million
earmarked to finance growth
"This is to make our ATMs
able to accept cash deposits
and do inter-account transfers
from the ATM machines. The
idea is that we want electronic
infrastructure to substitute the
physical branches especially
on public holidays. We have
increased the capital to
finance our growth."
ACLEDA has $1.6 billion
in deposits, 12.5 per cent of
which is foreign currencies
reserve which can't be
"The more you increase
your savings, it can help on
the liquidity side, however you
need to increase your paid
up capital to improve your
solvency so you can grow.
"We are doing a lot
to finance our growth
domestically and
internationally in Laos and
Myanmar," In Channy said.
"We have expanded our ATM
machines to a total of 162 and
we will increase .that number
to 220 by the end of the year."
He's pleased that the 220
ACLEDAA:TM machines will
outnumber the total 196
districts of Cambodia.
Also expanding are .
ACLEDA's Point of Sale (POS)
terminals, which now number
900 and will expand to 1!,000
by the end of the year.
"In our long term plan
we want to have 8,000 POS
ACLEDA Bank CEO In Channy.
sent eight Cambodian experts
already and by the end of
this year, only three ACLEDA
staff members in Laos will
be Cambodian because
our transfer was handled
Ill Channy saidACLEDA's
Laps operation very profitable
both in monetary terms arnd dn
the training of experts through
technology transfer. There's
also a good relationship with
the regulator in Laos, because
of a dialogue through a
banking association, just like
in Myanmar.
When theACLEDA team
metwith Myanmar officials
feedback from colleagues
who got invited to meet in
Naypyidaw to establish the
rnicrofinance association. This
is a big step for them, It was
after just one meeting and
they did that," he said.
In his speech to the
Myanmar rnicrofinance
officials, In Channy said
rnicrofinance should not be
limited in terms of loan size,
but would grow with the
customer from the first cycle
of$100, ,the second $2001and
the next one maybe $1,000.
amounts to US$270 million,
ofwhichACLEDA holds
US$56 million, making it the
largest depositor of Khmer
Riel in Eambodia, according
to In Channy.
"We have more Khmer Riel
than anybody because we
have offices and branches in
the rural areas, and normally
their income is generated
in local. currency and they
place their deposits in local
Khmer Riel deposits at
ACLEDA Bank earrn 7.5 .per
cent interest while US dollar
deposits earn five per cent.
In Channy said the future
looks very positive for
Cambodia andACLEDA Bank.
"Loans and deposits grew
7 per cent during the first
quarter of this year," he said.
As for challenges in the
marketplace, .In Channy sajd
there's increasing competition
among commercial banks on
bigger loans.
"Many bank1come and all
of them work in1 the upper
segment, so it is challenging,
but challenging on the bigger
1n addition to ..his p0sition
as CEO oEACLEDA Bank, In
Channy also serves as co-
chair of the working group
on Banking and Finance,
with his counterpart from the
National Bank of Cambodia.
"So far there is an
interbank facility and we
are working with ,the NBC

In Channy told the Myanmar
group that rnicrofinance
should.I be regulated by the
central bank, which has
professional expertise and that
the government should open
a dialogue with the private
sector, through an association
of rnicrofinance institutions so
they could improve the laws
and regulations.
to develop the interbank
market and the NBC expects
to have it done by June."
"This is the product oflisteningto the customer and implementing
it. In our case we listen, especially if the customer suggest ii'
In Ohanny said the
importance of the intenbank
facility and market is to
enable bank ban}<s to deposit
their surplus liquidity in
other banks. so they come to us and ask
for s.omething. If they can do
many things with one bank,
rattier than deal with more
banks, it saves them time.''
There are some suggestions,
however, that are not accepted
and ACLEDA policy is to offer
an explanation.
"Listening to the customer
and following the suggestion
.is key to success. What
we can accept we accept,
whatwecannot, we explain
why. Our service is quick,
convenient and secure. Time
Is money for us ;J.nd the
customer understan9s that,"
In Channy said.
In Channy saidACLEDA
would launch internet
banking before the end of the
year. Also in the works are
VISA credit cards which the
bank will begin to issue in the
coming weeks.
"Currently we have VISA
debit card, but customers
want to go international and it
is more convenient to use the
VISA credit card."
The strategy is to issue
the VISA credit cards to
ACLEDA staff first, so they can
understand the whole process
artd then do the publjcilaunch.
''At the launching we will.
issueVISA credit carets to
about 300 of our customers."
In Channy said'ACLEDA
' injected additional
terminals," In Channy said.
In Laos, ACLEDA now has
700 people, 32 branches and
offices, with an expansion
plan for an additional 10
branches this year, bringing
the 42.
''As a private bank, we are
the biggest in Laos and we
have achieved more than we
expected, especially in the
area of capacity building. We
built a strong team with 12
Cambodian experts to help
our colleagues there. We have
at the first rnicrofinance
meeting, they shared
beeame successful in a
meeting with people from
Bangladesh and. Indonesia
along with the Myanmar
"Myanmar .is open to
suggestions and they like to
listen. We e:iqJlained What we
wantedito do in Myanmar and
I could see that in Myanmar
was open to debate. When I
returned to Cambodia, I got
He was delighted to learn
that just such an associate
was created by that weekend.
. "Myanmar agreed to
establish an association of
rnicrofinance at the meeting
of May 23 in Naypyidaw," In
Channy said.
Here in Cambodia,
ACLEDA has 320,000 active
borrowing customers,
the majority of whom are
Cambodians. The total Khmer
Riel currency holdings of
all the banks in Cambodia
E Loans
"The impertance of this is
to use the surplus liquidity
in individual banks, so if
the other bank has surplus
liquidity, they can place with
other banks. Now1they can
do it, but we want the law to
regulate and protect When
we place it with the other
bank. The working gro1,1p
discussed this with NBC and
they said theyexpected to
have it done in the first half
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Banking, most transp:arent
industry in the Kingdom
Director General
for banking
supervision at
the National.
Bank of1Cambodia says
the banking industry is the
most transparent of all the
industries m Cambodia.
The NBC's Chea Serey,
who has participated .in. the
evolution of Cambodia's
banking system since 1999,
says she's preudofthat
transparency because the
stewardship of the monetary
system is part of the public
trust. '
"This is the money of the
general public and;it is our
money, yours and mine"
Chea Serey in an interview
on Wednesday at NBC
headquarters on Norodom
''.All of our families and
friends deposit money in
the banks. It is our strong
interest to make sure the
banks are playing safe. And
banks have the obligation to
be transparent to the general
public. In fact you can walk
into any bru and even if you
don't have an account iliere,
they are required to provide
you with their annlJal audited
report," she said.
The transparency required
Qf all banks operating in
Cambodia as mandated by the
NBC means it is difficult for
illegal activity to take place.
"When all your numbers are
audited, you can't embezzle. _
NBC is also audited by an.
external auditor as well. All
banks have to justify where
this money's coming from and
where it is going to," she said.
Born in Phnom Penh in
1981, she attended Batuk:
School until the sixth grade
and then carried on her
education. in France fr
middle and high school and
finally Singapore at the French
International School.
Chea Serey joined the
NBC in 1999 following her
graduation from Victoria
University in Wellington, New
Zealand. In 2002, she joined
the NBG's banking supervision
department and has risen
thrmagh the ranks since then.
Chea Serey's banking
supervision department
employs more than 100
NBC is an independent
regulatory and supervisory
organisation, not under any
She remembers back in
2000 when she .first joined,
NBC ordered the liquidation
of 17 banks that were unable
to meet the minimum
requirement of $13 million in
paid-up capital.
"We closed them down,"
she said. "We can close down
banks if they don't comply
with our regulations and it is
also in our power to change
the management of a b>ank if
they are not doing their job.
We have the right to approve
or dis\1-pprove their members
of the board," she said.
Today, the minimum
requirement is $37 million in
paid up capital, but even with
that amount of money, being a
bank in Cambodia is regarded
as a privilege.
"Banking is not like any
other business. That's why
they are strictly regulated."
More than 1,200 people are
employed by NBC and many
ofthemwomen, a unique and
arguably beneficial feature
of Cambodia's financial
She says it is amusing
when all-male delegations
arrive from the World Bank
or IMF and they are met
with colourfully dressed
Cambodian women on the
opposite side of the room.
When she started work at
the NBC, there were 16 banks
and now there are 38, seven
or which are specialised
banks and 32 commercial
"Those are mostly foreign
banks, and I think it is a
good sign. When a country
is able to attract more banks
says something about the
country's potential."
Chea Serey is acutely
aware that political st!lbility
of paramount importance for
any financial system.
"You can talk about any
other factor, but if you
don't have political stability
nobody will come. You have
to have predictability if
not certainty when you do
business by investing in a
country. Therefore when you
see investors.coming in, it is
a good .sign that they trust in
us and that they would also
bring along a lot of capital.
If you consider one bank
bringing in $50 million, you
do the math, that's a lot of
National Bank of Cambodia Depu\)' Director General for Banking Supervision Chea Serey
money," she said.
She cited a study by the
World Bank that showed
a strong correlation
between access to finance
and economic growth.
That's why she's happy so
many banks are coming
to Cambodia. Yet, she is
watchful of competition in
the marketplace and what
that means for the financial
system, which can 'be good
and bad at the same time.
"Banks coming in
provide finance and create
competition which lowers
interest rates. Interest rates
on loans have come down
if you read our annual
reports from 16 per cent
to 10 to 12 per cent. Yet at
the same time, if.too much
competition is injected into
the marketplace, it can be
detrimental for the whole
financial system," she said.
"Banks need to make a
profit. If the competition is
too fast and too stiff it can
also be bad. If your profit
is compromised, you may
curtail development.NBC is
making sure that competition
is fair and doesn't dampen
the development and
compromise the stability.
Another issue for the NBC
is the dollarization of the
economy, which Chea Serey
eiq>l.ains was a consequence
of Cambodiacoming out of
post-conflict poverty and the
UNTAC period.
"People tended to not trust
the local currency and we
saw the greenback coming in
when the laws and regulations
were not so strict, so it just
.happened and we're stuck
there, and it is difficult to
reverse the trend."
Generally people use
another currency is because
For more information, pl'ease visit our corporate website:
Ground Fl.nor of B-office Centr.e,
#61-64 Norodom Blvd Corner Street 3.06,
sangkat B.oeung Keng Kang 1, Khan Chamkamorn,
Phnom Penh, Cambodia.
Tel : 855 23 2188'66
Fax: 855 23 220108
C'll.,f'\ v
' ~ ' ~ ' . . , : . . . . . _-it__
- - _.>;.
Kampuchea Krom Branch
#640, Kampuchea Krom Blvd,
S.angkat Phsar Oepo II,
Khan Toul Kork,
Phnom Penh, Cambodia. ,
Tel: 855 23 883733
Fax 855 23 883811
Mao Tse Tung
#:187, Mao Tse Tung Blvd,
Sangkat Toul Svay Prey I,
Khan Chamkar Mon,
Phnom Penh, Cambodia.
Tel: 855 23 220080
Fax: SSS 23 220081
Email :
Steung Meanchey Branch
#68 & 78, Preah Monireth Blvd, .
Sangkat Steung Meanchey,
Khan Meanchey,
Phnem Penh, Cambodia.
Tel: 855 23 424220
Fax: 855 23 424221
Int erest Trend in KHR Interest Rate Trend in USO

::i ::i

! 4%


.0 ..
- 4%

. - ..
:; ><:

::: ::1

. - ..


12% i

. . . . . - . . . . . .
!- ! ! !--! ! ! ! ! ! ! !
0% I - ' '
,/' lf.:)l K.:)- K.:)- ;.:)- Ii.:)- .t.:)-
... <c' ' .:J't-;jc/
,. .. P K.:)- .,.:)- _,p _,.p ,,,.:;.
<I" ,. .r q- "" "'
--Saving Deposit - Fixed Deposit __.,_ Loan
_....: Saving Deposit --Fixed Deposit --Loan
they don't trust demestic
currency because inflation
rates are too high- and! today
in! Cambodia, the inflation
rate 1is very low compared to
other p arts of the worlCI..
"Our inflation rate is very
low, this year only 1 peF
cent year on year, and i:he
excqange rate is very, stable,
about 4000 'Riel per dollar
during the past 15 years. This
is a goad ground for peoJ>le te
save in local currency"
She said that NBC has
developed a draft national
strategy to promote the use of
local currefilfy. -
year. De-dollarization is very
critical n ow."
Chea Serey says Cambodia
needs to !have the ability and
the teols to set interest rates.
"We need to be able to use
our local currency; because it
shows our independence and
shows our sovereignty."
starts to get overheated.
"We are moving too fast,
we can use tools to put on the
brakes. At the moment we
are watching very cau.tiously
on the speedornetre and it is
going okay. We need to see if
the road is conducive to that
speed. If the bank is going
too fast and the economy
is not there, it's a problem.
ff the ecenomy can absorb
it, we will be okay. We look
at road con.ditions and the
speed.ometre, and we wat<;h
for any hazards, sign
alongtb.e road.''
Number of Offices of Cambodian banks
As of December 31 , 201 2
Table 1
Commercial Banks
1 Acleda1Bank Pl c.
2 Canadla Bank Pi e.
3 Cambodian Bank Pie .
4 ANZ ROY.Bi Bank (Cambodia) Ltd.
5 Singapore Banking CorporaUon Ltd.
.s May Bank (Cambodia) Pi e.
7 Advanced B.ank of Asia Ltd.
8 OSK Indochina Bank Ltd.
9 CIMB Bank Pie.
10 Cambodia Mekong Bank Public Ltd.
11 Bank for Investment and of Cambodia Plc.
12 Union Commerclal Bank Pie.
13 Cambodian Commercial Bank Ltd.
14 Foreign Trade Bank of Cambodia
15 Vattanac Bank Ltd ..
.-,. _
16 Saigon Thuong Tin Bank (Cambodia) Pie.
17 First Commercial Bank; Phnom Penh Branch*
18 Hwang DBS Commercial Bank Pit::.
19 Phnom Commercial Bank
20 Krung Thal1Bank Public Co. Ltd. , P.P. Branch
21 Agri Bank Cambodia Branch
22 Bank of India Phnoril Penh Branch
23 Booyong Khmer Bank
24 Gambodla Asi a Ltd.
25 Kook.min Bank G,ambodia Pie.
26 Maruhan Japan Bank Pie.
27 Shinhan Khmer Bank Pi e.
28 Bank of China Li mited Phnom Penh eranch*
29 Mega lntematlon@I Commercial Bank Co., Ltd.
30 ICBC Limited Phnom Penh Branch
31 MB B<!nk Plc.Ptlnom PenhBranch*
32 Bank P-lc. Phnom Penh Branch*
- --
-- -


I Phnom If
I P;ovlnclal P
Provlrfclal Total
enh -
15 223 234 14 220
15 24 33 13 20
15 9 23 14 9
11 6 19 11 8
10 6 16 10 6
ii' 4 11 7 4
8 3 10 7 3
9 5 4
8 3 7
3 3 6 4 2
2 5 6 2 4
2 3 5 2 3
1 3 4 1 3
4 2 4 3' 1
3 1, 4 3 1
4 1 4 4
2 1, 3 3
4 3 3
5 1 ' 3 3
1 1 ' 2 1 1
1 1 1
1 1 1
1 1 1
1, 4 1 1
1 1 1
1 1
3 1 1
2 1 1.
141 307 ' 4104
12.3 __ - . 2-91 '
"Ol!lf intention is to have
an the price quotedi in lliel,
though customers can
As for the future, Chea
Serey approaches it with
cautious optimism. "I see a
lQt of.potential 1in the banking
system. I see development
coming <md pgtential in
contril;>utin1nnore to the
ec.onomy, moreto p9verty
1reauction and banks are
staiting ito provide mQrtgage
'loans. Newly.:qiamied
t:amboilians are getting loans
for hpuses. Mjcr9finance
instjtutions are providing
loans for metmtycles an.d
Some oftb.e recent
work Of the NBC ;includes
the development of
"Interbank Market'' lfythe
third quarter of this year
which. enables banks to
use the NBC's negotiable
certificates of deposit.
, .Soeciallzed Banks
33 Flrst lnvestment' Specl atized Bank

11..,.. - l'
34 Anco 'Speblallzed Bank
1 .1.- , 1
35 Tomato Bank
' 1 1 1 .1
36 CAM,KO Specialized Bank _ 1 1
1 1
37 Rural E>evel opment Bank 1 I 1 1
38 Angkor Capltal Speclgdized Bani(,
. 1 f 1 1
39 PHSME SJl'lcialiied Bank Ltd.
1 1_ I

Sub-total t
7 7
- 307 -
421 130 291
have the choice to pay .fn
Riel or USD for a tr@sitien
period." she said. "We will
have a public consultation,
consultation among the
ministries and hopefullythe
government will adopt it we
hope before the end of thls
She sajd that while rapid
growth is good, there are
mechanisms .in place to "put
on tb.e brakes" if the economy
Banks will 'be able to use the
Interbank Market for theiF
liquiditymanagement, she
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Graphics courtesy of t he National Bank of CamboJ.ia
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C:anadia Bank CE,O articulates
Q&A with Canadia
CEO Michael Lor
Micha.el Lor was appointed
the CEO of Ca,nadia Bank
Plc, Ca,mbodia, infuly20H.
In leading the Bank's senior
management team, he is
responsible to key areas
of competitive business
transformation including
business expansion,
process enhancements and
optimisation, customer
experience, risk management,
corporate governance and
complaints and leadership
Lor sat down with the
Post's Moeun Nhean for an
Our readers want to under-
stand Cailadia Bank'.s secret
for success. Can you give us
ail overview of Cambodia's
banking industry today where
35 banks serve a population of
more than 14 million people?
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Canadia Bank recognis'es
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Much of this has entailed
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We devote great attention and
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Today, Canadia Bank
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Despite significant growth
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radio rem(!ins among the
highest in the iQdustry at
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position of US $204 million,
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Canadia Bank is truly
a local Cambodian BanR
with its growth, culture
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entwined with the
Cambodian people and
economy; simply put," we are
here to stay''.
How many branch offices does
Canadian Bank have nation-
By the middle of this year
our distribution network will
comprise 48 branches and
more than 80 ATMS located
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Our aspiration is to be in
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Very shortly, we would also
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our internet banking services
for both our individual and
corporate customers.
What is Canadia Bank's recent
financial performance?
Canadia Bank Plc reported
financial performance
for fiscal year ending 31
December 2012, with growth
of total deposits by 22 per
cent to US$1.28 billion,
and also grew loans book
by almost 20 per cent to
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competitive environment,
Canadia Bank grew loan its
portfolio in a disciplined
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credit quality. With improved
efficiency, total operating
income jumped more than 35
per cent compared to 2011,
to reach US$70 million. The
Bank's total assets co_JJ.tinue
its upward path and grew by
23 per cent to reach almost
US$1.56 billion.
The year 2012 resulted in
impressive financial gains
and standing. Our total
income increased by 35 per
cent. A total of $70 million,
and driven by net interest
income, accounting for 52
per cent, and net fee income,
accounting for 25 per cent;
Our cost to income ratie
improved by seven per cent;
Thanks to effective action
on delinquent loans, NPL
ratio improved to 4.5 per
cent as compared to 5.3 per
cent prior year; Our solvency
ratio continues to be solid,
which at 17 .3 per cent we
are above NBC's solvency
requirement; Our return on
equity increased to almost 19
per cent, which is higher than
target, and also higher than
our prior two years; During
2012 net profit for Canadia
Bank grew by 63 per cent as
compared to 20111.
What is Bank's recipe
for success?
Canadia 'Bank is building
a strong and resilient

busmess frafiehiseS"and'a ,. '
long term view, and we are
well positioned andprepared
for competition.
In keeping with a history
of disciplined growth, the
Bank will continue to grow
and strengthen existing core
business line and grow its core
commercial banking business.
In due-course we will also
of ourirespective partnerships
with two significantregional
partners with strong
reputations and brands, and
standing in their respective
markets, to start two new
business franchises, which
will transform Ganadia Bank
into ;i. Universal Banking
Group; capable of delivering
a complete range of financial
services from commercial
banking, microfinance,
life and general assurance,
and investment banking to
our existing and potential
customers. StrategicalJ.y,
Canadia Bank will become
a clearly diversified and
successful Cambodian
financi<J} institution, able tto
stand strong and tall amongst
the regional banks within
Mean.while, we also
continue to recerve requests
andinvitations from large and
established financial institutions
with strong global presence
expressingtheirkeen interest
to partner with Canadia Bank
and to partner their respective
customers' intentions to invest
into Cambodia
These recent developments
point to and provide clear
indication of strong growth,
and continued financial
strength and leadership
Canadia Bank's reputation
and standing amount
financial institutions globally
is a direct result of our
disciplined approach to
growth, financial soundness
and fidelity to our customers,
shareholders and employees.
Having built a strong and
successful banking franchise
in Cambodia, we have now,
a clear and logical aspiration
to grow our franchise into
the region. We are presently
evaluating an opportunity to
enter a neighboring country,
partnering with a strong and
establish institution in the
region and we hope to be able
to make an announcement
within the next quarter.
In addition, we are
also watching the exiting
developments in Myanmar as
well as in China with a keen
interest. 1111
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know-how to ensure each transaction is managed carefully
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Our Trade Finance Services offer:
Letter of Credit
.Bank Guarantee
Letter of Credit Confirmation
Trust Receipt
c:IM.B sp ecial p:ref
offering special
. "preferred
customer" status
for depositors of $50,000 or
more, according to Head of
Strategy and Finance Heng
Vu thy.
the companies and so on.
Expats are also our target
here, who travel in the region
and we are also looking for
Cambodians of a high profile,
who may be sending their
child to study in Singapore
or Australia. We also have an
office in Australia."
. A local Cambodian,
who has been given big
responsibility in the
CIMB Bank, he was born in
Southeast Asian platform
while preserving aspects
whicfu. identify us to the local
population," HengVuthy
"If you look at the banking
landscape of Cambodia,
a lot of banks will have a
lot of ATMs. For us we also
try to see something we
can bring to Cambodia fm
regional leverage of ASEAN.
One of the keys is a wealth
management product," he
As a preferred member,
HengVuthy said, the
customer will get exclusive
services and benefits locally
and regionally such as a
dedicated Relationship
Manager, free access to
airport lounges in ASEAN,
pre-arrival account opening
in ASEAN countries, special
discounts at high end hotels,
shops and restaurants in
ASEAN, access and same
recognition at all CIMB
Preferred Centres inASEAN,
and more.
"Our preferred center ser\res our preferred clients
differently from the nonnal client and you also
have a manager; you're served first
and you have privileged rates and other benents"
"Our preferred centre
serves our preferred clients
differently from the normal
client and you also have a
relationship manager; you're
served first and you have
privileged rates and other
HengVuthy says the idea is
to target the affluent people
in the marketplace.
"We would like high profile
people like the CEOs of
Phnom Penh in 1981 and
has worked for a number of
qualifications including a
master's degree .in finaace,
previously worked at
ACLEDA Bank for eight
years before joining CIMB in
August 2010.
"One of our key
differentiators for CIMB
is our multi local business
model. Our regional. model
enables us to fully leverage
the reach and scale of our
Tel: 023. 999_ 989 .
CIMB has linked ATMs in
five countries as a regional
net;work s0 far in Cambodia,
Thailand, Malaysia,
Singapore and Indonesia.
"Next will be Philippines
andiVietnam and then
ultimately all 10 ASEAN
countries," Heng Vu thy said.
"With this regional ATM link,
CIMB customers can access
to more than 5,000 ATMs
across the five countFies free
" t t r t , .. 1 1 l t r .; 1 1 ' ,. 1 1 1 'I ' '
- Y.
_,..,., .:.-i:T a
1; ,r : : , b1dj; .. r;
of charge and they can get
the local currency as they
withd!'aw the money. The
conversion rate will be better
than at the counter:"
Other differentiators for
CIMB are that they were
the first bank to launch a
dual currency investment
(DCI) services and a service
whereby customers deposit
in US dollars and they have
a passbook that records the
amount they have according
to the price of gold.
CIMB also offers foreign
currency accounts in
Australian dollars, Euros,
Japanese Yen, New Zealand
dollars, British pounds,
Singapore dollars, Thai Baht
ahd Cambodian Riel.
"For DCI the customer can
choose whether they want
good conversion rate or high
interest rate for this pair of
currency. With this product
we need at least $25,000 to
start with. That's why we
target a more affluent client,"
he said. -
CIMB has 1,100 branches in
1:7 countries including China,
the UK, India, Sci Lanka,
Taiwan, Korea, Brunei and
Bahrain. Here in Cambodia,
CIMBhas 11 branches, with
seven in Phnom Penh and
CIMB Head and Finance Heng\Mhy.
rred .cust.ome.r, p:rivileges
. - .
oranches .in Siem Reap,
Silianoukville, Battambang
and Kampong Cham.
There are also 11 offsite
electronic banking centres
- consisting of A'fM, Cash
Dep0sit Machine, C:jlld
Cheque Deposit Machine, 10
in Phnom Penh and one in
Siem Reap.
As .for expansion plans,
CIMB in Cambodia has
already created 11 branches
since 2010' and has a strategy
of growing those offices first
before adding additional
branches, but they will add
some electronic banking
CIMB also offers tier rate
savings accounts, mortgage
financing, interest-paying
current accounts, business
loans, and overdraft and
trade finance facilities.
"In the near term we
are looking to capitalise
on this and building our
customer base and grnwing
them. For the near term we
are looking at especially
focusing on SMEs, the
mass affluent market and
the growing of the mass-
affluent-to-be. And in the
long term, we are looking
at deploying investment
Heng Vu thy says
CIMB has "investment
banking blood" owing to
the bank's background,
something to watch for in
the future.
"The CIMB group
acquired a lot of commercial
banks in Indonesia,
Thailand and Malaysia
and quite a number of
commercial banks."
CIMB Bank PLC has 170
employees, grown from 30
when HengVuthy joined in
"We focus on the sales
organisation, training and
sharing sessions."
The CIMB view for the
Cambodian economy is very
upbeat, he said.
"There is still a lot'of op
to grow in Cambodia. As
reported from World Bank,
only less than 10 per cent
of the population has a
bank account. Cambodia
is a very young population,
mostly under 30 years old
and we can see a mass
affluent growth in the
For the banking industry,
HengVuthy thinks the
National Bank of Cambodia's
annual report tells the story.
"For last five years in
the NBC annual report
the growth rate has always
been 30 per cent and above.
You can see also with the
ATMs and cash deposits,
the population is not
shy to aceept these new
B's Heng Vuthy answers questions .
about products, currencies and interest rates
How many branches does
CIMB have total?
CIMB Group has more
than 11:00 branches across
17 countries (Malaysia,
Indonesia, Thailand,
Singapore, China & Hong
Kong, Vietnam, US, UK,
Brunei, Bahrain, Myanmar,
Cambodia, India, Sri Lanka,
Australia, Taiwan, Korea)
How many branches in Cam-
There are 11 branches
in Cambodia; 7 in Phnom
Penh and 4 more in Siem
Reap ('Fourism Area)
city, Sihanouk Ville city
(International Port),
Battambang city (Rice Mill
Area), and Kampong Cham
city (Rubber Plantation
Area) and 11 offsite self-
service terminal and
continue gi;0wing.
When did CIMB first open in
commenced operation in
Cambodia in Ngvember 19,
2010 with the openiBg of a
first branch of CQmmercial
banking in the heart of
Phnom Penh city.
What currency acc;ounts can
people have at CIMB?
NZD, SGD, GBP, THB, and of
course KHIR.
How do you differentiate
CIMB in the marketplace
from other banks?
One of our key
differentiators is1our multi-
local business model -
which we have successfully
implemented across. our
ASEAN franchise and
which we do the same in
Cambodia. Our regional
model enables us to fully
. leverage the reach and
familiar t o local cultures
and practices. In doing so,
we hope that the population
will treat us not as a foreign
bank, but as a local bank
with regional resources.
In term of products; on
top of our basic deposits,
loans, and trade facilities
we are continuing introQ.uce
wealtll management/
investment products for
our growing affluence
customers. Eg DCI (first
bank) and GDA.
In term of services; in 2012,
we invested in our core-
banking system for trade
finance module; which has
the ability to enhance our
customer service capacity,
thus improving value for
customers. We launched
our preferred banking and
ATM service, which
is another regional benefit
for our existing and potential
cqstomers, enabling them
to enjoy our CIMB Group's
ASEAN network and regional
ATM network of more than
4,800 ATMs across the 1region
with no service fee charged.
Recent;Jy early 2!1.3,
CIMB Bank PLC l;>ecame the
first bank certified by ISO
9001:2008 for its customer
services. The evaluation
process on our customer
service process including
account managemen.t,
counteF operation,
business continuity 1plan
other processes have been
conducted by Guardian
Independent Certification
(GIG), a United Kingdom
Certification Body. 'Dhis is
to ensure that we ibave a
pFQper as well as consistence
procedure .in,placefor our
customer services and
business continuity plan
acrosi;; our 11 retail branch
scale ofour S0utheast What are your expansion
Asian platfonn. while plans for Cambodia?
preserving aspects .which Qur commitment to and
identify us to the local investment here as reflected
population, allowing us to by our qtpid deployment
understand and cater for of branches speaks for our
their specific1needs. For confidence in the growth
example, we strongly believe prospects in eambodia. We
in the empowerment of rolled out 11 branches in oqr
local leadersb.ip and the first twe years of operation
dev.elopment .of pr!i>ducts . . . . complemented ,by a network
and services which aFe of effsite self-service
terminals and continue
With our infrastructure,
human capabilities and
branch network in place,
complemented by the
full range of products
and services [from tierec:I
rate savings, mortgages,
Preferred Banking, interest
paying current account
and business loans and
overdrafts to trade finance],
we are now in a position to
grow our customer base as
well as better understand
their banking needs.
What kind of loans do
you provide? Property?
Automobile? Business?
Business term loan to
finance business capital
investment (CAPIDG as we as
Personal term loan to
finance personal needs
including automobile and
Housing loan to finance
residential property (which
offering with more flexibility
for our client in term of
security, repaymen.t etc).
Overdraft for om
customers' working q1pital
financing, and
Trade finance facility
to facilitate across border
trading activity.
What kind of customer is
your target customer?
For the near term, we
will focus on building up
our commercial banking
franchise focusing on SME
and mass affluent and mass
affluent 'to be' individuals.
In the longer term as the
Cambodian economy
developed, we will explore
other financial services e.g.
investment banking, etc
in line with and as part of
CIMB 's universal banking
Do you have any new prod-
ucts and services you would
like to talk about?
DCI product - to facilitate
our customer who need
foreign currency in the
future to save with us and as
of yesterday USD-JPY DCI
we pay 26 per cent,pa.
FCFD - is another
alternative saving/
in;vestment for customers
who holding or using
currencies other than USD;
we pay AUD 5.5 per cent pa.
Trade Finance - We have
deployed TF module in
our core-banking system
to smoothen our customer
Flexible Housing Loan:
three options for customers
to maximize their needs with
a high margin of financing,
fast approval process,
lower costs and tlaey will be
=z:ae:=::!1 _-_ --- _:_ - . . - - -'-'- ..... /i. ....1 ..... -" ' -- ...
CI MB is offeling special treatment for preferred customers.
able to get a bigger house
with gradual incremental
What's your opinion on the
Cambodian economy? Does
the future look good? Why?
We are positive on
Cambodia in view that it
is relatively under-banked
as per a recent World
Bank report which states
that only 4 per cent of the
population has a bank
account, has a iVery young
population averaging less
than 30 years old and most
importantly, a rapidly
developing economy
facilitated by open and
progressive government
Growing acceptance
products as reflected1by the
rapid growth in deposits
and loans averaging over 30
per cent annually over .fue
last 5 years in the banking
industry; in addition,
Cambodian consumers
are not shy to adopt new
products and services
as reflected by amongst
others the rapid expansion
and adoption of self-
service terminals.
further facilitated by a very
progressive and supp0rtive
National Bank of Camb0dia. IDI
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1 '

, '

FT'B, an.d. Win.g partner to
Topping up a VISA card can be

by mobile phone or internet
HE new agreement between Wmg
and Fm will.enable people all
over C<URbodiato bl!lyprepru. . 'd
VISAqrrds and get them tapped
upielectronically throughWmg's
mobile payment system.
The agreementrneans that going to
get much less expensive for people to send
money to people even in rural Cambodia from
anywheFe in the werld through Wmg's existing
Cambodia-wide network by topping up the
VISA cards from anywhere.
When Wmg CEO Anthony Perkins needed' to
add Cellcard1 te the list of mobile operators that
could be topped up tcyough Wmg's service, lhe
contacted <Dan Felsing, who was then workiD.g
for Cellcard and they became friends.
Sinee then, Felsingjl'iinedFTB, saw an
opportunity ancl:,got ill touch with Perkins
about a possible agreemeat that has inowcome
to fruition.
Accordingito Perkins, Wmg's first phase of the
project is to help FTB by making it possible for
Wmg rustomers to top.up prepaid VISA cards
an.d launch the VISA card offer to all 440,000
"OUI customers can get a prepaid visa card.
that they can top up. anytime. through our Wmg
distribution," Perkins sai'd. "You've sudP,enly
g0t access to i ,000 outlets nationwide. And the
third part is a virtual!vtSA card. We are working
directly with VISA, and FTB, which is the issuer
olithe ard."
Perkins says the advantage to the public .is
they dop't have to pay for the ove1head df an
international bank and clecisions are made
right here i.p,Cambo<ilia.
"This helps the Natioaal Bank of Carnboclia
whlch:have requested'Wmgto get invoJved in
internationalrnmittance;'' Perkins said.
"Phase 2 is for:Wl.Flg aJ.11.d Ffl3 to 11aunch a
-n, _ .. _ifr
- . -
mass mru.:ket prepaid VISA," Perkins said.
In order to differentiate theWmgVISA
from the FTB VISA, iboth1 of which will be able
to be topped up by Wmg, Perkins made an
agreement with Rov:io of Finland, the owner of
the Angry Birds franchise.
"In Thailand, one card issuer did it with
Angry Birds and ran out of cards," he said.
Wmg is targeting August for the 'launch of.its
Wmg "Angry Birds" 'FTB VISA card. Meanwhile,
they're helping card issuer FTB with the added
advantage of customers being able to top up
their FfB VISA cards via Wmg's service.
With the hearty support of the National Bank
of Camoodia, Perkins says the service will make
it easy, especially for overseas Cambodians to
send money back Imme to their relatives, evefl
in .rural areas.
"The National Bank 0f Cambodia is
keen for us to dljl international remittance
especially foF migrant workers. 1'here are
.CCIJI1bodtans syruggling to sen.d.m.oneyhome
and existing methods are so expensive."
PeFkins says Wing is talking to multiple
partners 1like Western Union and smaller
players to. be involved.
"The end game is once you've got a VISA card
it opens you up for international. remittance
from one VISA card to another which effectively
gives you an intemational remittance.
"One of the key things about Wmg is
the ability to be dynru.nic and imlovative,"
Perkins said. "A let of hanks are slow moving
technology-wise, ipaFticularly the international
banks, because they use the same platform and
the same processes in numerous countries that
don't necessarily accommodate the nuances
of individual nations. Wmg can move much .
faster on technology because o.f our foical '
team, whether it's mobile or online J.i>ayment,
enablingpeeple to pay for like a
Perkins said Wmg is wod<ing with multiple
banks on becoming the clearing system for any
card payment through a Point of Sale (POS)
"In.some cases banks might want to extend
their POS network, so how about ban.k
custemers being ableto useWmg outlets?
POSeffectively becomes a mobile ATM that we
can usefoFthe banks."
Perkins said ACLEDA, Canadia and ANZ have
the biggest bank POS networks in Cambodia,
consisting oli credit card machlnes that banks .
issue to restaurant$, hotels, supemlarkets and
other businesses that need to offer credit card
payment facilities. He says Wmg has as many
POS devices as all the banks in the nation put
together with.some 7,000 machines now1in
operation for printing pre-paid1 phone top up
"We are looking to take on bank POS
networks either to .run it for a bank, or to extend
it for a bank," Perkins said, adding that at lleast
two banks pave already expressed .interest.
He believes the mass market VISA card with
low fees will be winning strategy.
"By making it mass market we can'liarness
our very large customer base aJ.11.d make our
1 fees very and only five per cent
of the counmyhas a bank accoUFlt. There is
still a massive.opportunity for people who
are currently unbanked, and that's what we
are here for is to bank the 1unbanked, and give
services to eveeybody in the country."
Perkins said Wrn.g strategy was set up to
help i:he Cain.boclian ,people easily move
money around, even in small amounts and
for orclinaty rural citizens, but that the same
strategy applies to larger _
"We were set .to look theiittle guy, but
als(:) by we are develeping such cool
products that they are actually relevant to the
big guy as well."
Perkins said people.can open a Wrng account
for $2.50 and after that can have a zero balane
and zero month1yfees, yetwith the same
security as a bank.
"Wmg has the same security as a bank
becayse the money does sit .in a bank. You're
getting thesecurity, and if you don't use it, you
don't pay. It is safer tPaJ.11. keeping it ilnder the
'Perkins said Wmg has already.signed a cl.eal
with.Tiaxa, a Chilean company that oilers credit
rislcbased:on ,historical mobile phone top up
records ito issue small amounts ef phone topup
creclitand is alsolook,iJ:ilg into the
srnall short term unsecured loans to its existing
customer base in the future.
Even though ANZ sold Wmg,.ID. No.vember
2011, ANZ still holds the license andiholds all
of the Wmg customer deposits, 1J>erldn.s says' the
current agreement with ANZ is not exclusive,
enablingWmg to also work with other banks.
"The current agreement with ANZ is not
exclusive, so we can work with other banks,"
Perkins said. "The National Bank of Cambodia
has oversight ofWmg, andwe send the NEC
figures every month, but we work very closely
with the ANZ compliance team. We can be a
bit more creative and dynru.nic and we have
the ability to create new prodwcts and adjust
to the market quickly is crucial, to Wmg, We
are effectively a technology compariy .and
weemi;>lo.y our own Cambodian tchndlogy
team. We've got '!team of about 20 technology
develqp.ers," Ill
'- ,
.. . , ., t . i
ngVISA cards, to the mas:s,es
FTB issues first V,ISA cards in Asia that
can be topped up via mobHe
Trade Bank of
Cambocdia's deal
with Wing marks
the first time in
Asia that people will be able
to top up their VISA cards
with a mobile phone, making
the traasfer of money to
Cambodia easier and, less
expensive than ever, from
anywhere in the world.
The deal is ap, example
of innovators in Cambodia
being able to leapfr0g
to the,latest technology,
unhindered 'by existing
systems - similar to 1the way
cellular phones leapfregged
past land line telephones
Afready an .issuer of
prepaid VISA cards for the
last two years, FTB tea.nwd
ur with Wing rtwo months
ago to take advantage of
Wing's distribution network
to make prepaidVISA cards
easiei; than ever to get in
Cambodia, according to
FIB General Manager Guy
said. "It is FTB and Wmg who
are also both front runners
in their respective spaces as
market leaders. This puts
Cambodia in first place.
Even .the US doesn't have
this. It is brought to you by a
bank that is an iflF).ovator
a mobile money service that
is also an irmovator."
The least expensive
pre-paid VISA card can be
obtained for $3 ancd can be
toppea up with anyamount.
Personalised' cards come
in two levels, blue for a
minimum initial' loacd of $500
and gelcd for an initial load of
$5,000 or more:
"The $3 prepaid card is
goocl! for gifts and on1ine
purcID.ases. You can also
withdraw money for free at
F'FB A'fl\1s;" Felsing said.
Currently, customers can
purchase ah FTB prepaid
Visa for a minimurn1 of $23.
The $23 card comes with
bank to 'back 1these cards and
be the i.ssuer.We knew that
FFB was the only bank with
prepaidVisa cards, which
exactly matches our target
customers,'' Perkins said.
"We've managed to throw all
this together in two months."
FTB's General MaNager
:iuy Anvanith gave Felsing
the green light to make the
link with Wing because
bot!hWing and FTB shared
the common purpose of
.reaching people who don't
yet have bank acco.unts.
"We are !like two brothers
that are targetedto the
unbanked population. Just
like Wing, we are tryiflg
to reach the unbanked by
linking up Wing's clients. !l1hat
means this population 1)1as
a possibility to do banking
if they choose to and tlJ.ere
are millions of people who
can step up to do traditional
banking. The other feature, in
additien to accessibility to the
rest of the world, is that you
have a trust and safety feeling
because you have a solid bank
behind it," Guy said. "What's powerful' is for the
fust time we are connectirtg
VISA, FTB and Wing, the
whole of Cambodia will be
connected to the financial
services of the rest of the
world," Guy said. "Without
Wing we would never
a balance of $20, with a $3
charge for the plastic, and is
available in a few minutes at
FTB branches or with select
men;;ID.ants. The b'lue and
gold cards are available the
next day, or in two hours if
purchased at the FTB office
where they're produeed on
the comer of Streets 214
and 63.
To top up the FTB/WING
co-branded cards using a
Wing account, a customer
needs to have balance
FTB already has ATMs
with biometrics technology,
enabling people to access
cash just with their
fingerprint, as well as
internet banking.
"In terms of technology
with our product portfolio,
we have ATMs with
biometrics technology, we
have internet banking and
we have cards. What we were
missing was a mobile 1link.
VISA partners, from left, Wing CEO Anthor)Y Perkins, FTB General Manager and board member Gui Anvanith, FTB Senior Manager for card
and E-Banking Ros 3okha and FTB Project Director for cashcard Distribution and Mobile Pqyments Dan Felsing.
have been ab1e to reach a
.thousand outlets 1in a short
period of1time. That's why
we found this opportunity to
work with Wing very timely,''
Guy said.
"We are bringing a
product that makes service
accessible across the world
to Cambodia 1through a
fOFmidable system which has
developed over the years,''
lhe said.
According to the
agreement, FTB and WING
will sell i::;o-brandedVISA
cards thrnugh all! l,OOOWing
Cash Express outlets aNdl FTB
branches across Cambodia.
Cardholders will be able to
top up their VISA cards at any
of 6,000,total Wing ou1!lets,
just like they top up 1their
mobile phones.
Wing will start distributing
the !'TB-WING co-branded
VISA cards to the l,OOOWing
Cash Express outlets .in
Gl!ly says that 'FTB wanted
to offer prepaid VISA cards
that students, businessmen
ancd travellers could get
easily. He hopes Cambodia
,will soon be fl'ooded with
VISA cards.
FTB's Project Director
for Cash Card Distribl!ltion
& Mobile 'Payments 'Dan
Felsing, who has been
working on ,the project with
FTB.'s, Senior Manager for
Card and! E-Banking Ros
Sokha since he joined the
company three months ago,
says you don't even need a
bank account or collateral to
get the VISA card.
"This project puts
Cambedia as a trailblazer of
new technologies,"
in theirWingm-wallet.
Customers then ID.ave the
option of topping up their
Visa fFom their mobile phone
or with any Wing CashXpress
agent using their 16 digit
Visa card number and 4
WING pin number.
FTB's Pn>ject Director
felsing had earlier worked
with Wing CEO Anthony
Permns when Cellcard Cash
became part ofWing.
"We had a dose
relationship and because
of mobile money exposure,
I knew what was possible,''
Felsing said. "One of the
things I theught efwas why
By hooking up with Wing
we have the fourth leg. The
next step would be to make
everything much easier to
1:1se. No other bank would
have all these products,'' Guy
"One 1thifig that is reall:y
great about this is the
minimal investment. It is just
hooking it up. It is amazing,
and all the systems are in
place. Up until how, you have
had plastic only confined
within Cambodia. V:isa makes
tit aceessible to the rest of
fee is '$1.50 currently and
Perkins says the fee for
topping up the VISA cards
is likely to be between $1.50
antft .$2, 'but 1is still being
. An estimated $l billion per
year comes te Cambmdia 'by
transfers, with an estimated
one-third ofthat amount
going, throl!lgh banks and
Western Un1@n, according tm
. "Peeple also lming in
bags of cash. Our vision .is
to 1replace cash wherever it
is and the more electronic
transactions we can do,
the better. Fees for transfer
from overseas to Cambodia
will be way below existing

. 'What's powerful is for the first time we are connecting
VISA, FTB and Wing,, the whole of Cambodia will
connected to the financial services of the rest of the world'
................................................................... _ .. ,
not partner with Wing if
possible, and said hey, are
you guys interested in doing
something?" Felsing sent
Perkins an email anQ. 1the deal
was done two months later.
"This was a case wID.ere
FTB already bad 1the product
and in my mind it seemed
1like a.very,good fit, with
what F'ifB had already built,
and with what Anthony had
already," Felsmg said.
Perkins meanwhile had
already been talking to VISA,
thinkihg along similar !Urns.
"We had been working
with Visa as to how to do this
'and VISk said we neecled a.
the world. From Long Beach
California, somebody can
top up somebody's card 1in
Ratanakiri and you can use
all the ATMs in Cambodia,"
Guy said.
Fees charged. will be
different at v.arious ATMs,
depending on the bank.
Guy said the: pID.ilosophy
was "pay per use". B0th FTB
and Wing willl make mon.ey
'by charging small fees on the
"Dur conersations have
been focused on not making
the fees 1cost prohibitive,"
Felsing said.
Wing's largest transaction'
ehannels," he said.
FTB's Guy says technology
is moving very rapidly.
"This is a very pmwer
tool for us to reach a
popl!tlation we would not
have qrearned of reaching
without technology, which
differs from br.ick anc;r mortar
branches. We are hooking
up different distribution
channels apart from the
traditional. No one from the
banking system here has
cooperated 'from a non -
bankmstitution. Ailot of
it has to do with trust, the
understanding of technology,
,and howto c0ntroll it."
The Cambodian
Government's Ministry of
Economy and Finance owns
10 per cent along with a local
company called mg Holdings
which is related to the AZ
group of companies that
holds the toll road fran,chise
to Sihanoukville and large
real estate developments and
has a 44 per cent o'fFTB and
the rest is held by two private
"We want to open up
)Jaaking to everyone, no
lehger a niche player;"
Guy said. "We have seven
branches, going te 10 'by
the end of this year. We
completed an internal'
reorganisa1iion 'last year and
we have a retail structure in
;place," Guy said .
New FTB branches will
open in Central Market as
weU as Tuol Kork. Further
branches are planned in
Battrunbartg and Kampong
Chain .
Guy said a Ikey for F'il'B was
a very conservative way of
managing the bank. Of the
$400 million in deposits,
$220 million is kept in eash.
"You can be sure that if
you are a depositor, that you
can get your money back
anytime, in anyamount.
We provide safety to our
customer and we have
maintained a very str0pg
capital base with more than
$65 million in shareholder
Guy said Ff!B iposted a 1. 7
per cent return on assets
and a 1:4 cent return on
equity, with 1.4 per cent of
non-performing loans.
"We are one of the
solid banks in the country,"
he said.
In an inteFview 'last
week with Guy, Felsing,
Ros Sokha rem FT!B and
Perkins fiom Wing, Perkins
said if a Cambodian .is in
Sing<:1:pore and has children
who need health care in
Cambodia, he can top up a
VISA card with his mobile with roaming,
enabling wife to pay the
hospita'l bill.
"You can do transfers while
on the move,'' Perkins
Guy said peop'le don't need
to keep cash at home, but
can just have a card.
Another part of the deal
is Wing's Pojnt of Sale
. (POS) netwerk, the largest
in, Cambodia with 7 ,ooo
terminals and plans for
another 10,000 next year,
for a total of 17,000 POS
terminals Cambodia-wide.
"Wherever we can get
people to accept a VISA card
payment, we can.rrovide
more places where people
can use these Gards. One
thifig 1is keeping the money
safe, but there is also giving
them the opp0mmity to
spend the money."
FTB andlWing plan to issue
the Angry Birds 'Prepaicl!Visa,
designs when the project
launches in August.
FTB and Wing wiU share
revenues on 1Q"ansa;;:tions.
. "Youlll be able .to use
. this card immediately and
reload it 1inimediately. We're
wmlcing on a merchant
aggregator where theiJJ
terminals are also V:isa
cei:tifiecl}' , , Ill
--- __ --:::__:=-_=-- - -- '" - "<J
-.:_.: ..
HwangDBS b,ank
bullish on Cambodia
Manager of
Hwang DBS
Bank, Han Peng
Kwang, says the Malaysian-
based bank's rapid growth
since 2009 has made him
in Cambodia.
"We are bullish about this
country .in terms of growth in
the economy," Han said.
"That's why the chairman
set up this bank four years
ago and that's why we are in
the process of expanding our
branches. We want to capture
more of the market share
and assist more people to
impi:ove their businesses and
livelihood. ," Han said in an
interview last week.
HwangDBS first opened in
Cambodia in JUiy 2009 and
now has four branches and 80
Ban intends to grow
HwangDBS into a mid-sized
cominercial bank, ori a
gradual, step-by-step basis in
the medium term.
. "Our main target is small
and medium sized enterprises
(SMEs), but specifically
focused on medium sized
customers such as retailers,
wholesalers, businesses in the
construction sector, service
sector, manufacturing sector,
hotels and other industries.
As long as they are bankable
we will support them."
Han says HwangDBS offers
business l'oans, retail loans,
individual loans, and retail
mortgage or housing loans.
"We are giving housing
loans for all types oflanded
properties, apartments and
condominiums. However, the
properties to be purchased
must have a 'Hard Title' issued
by the Land Management
Office, not by chief of the
Sangkat or commune," he
The loans and accounts
are in US dollars "because at
this .time the country is still
very dollarized", Han said.
"We are catering to all types
of business but not certain
.discouraged businesses 'like
karaoke and casino."
HwangDBS 'commercial
Bank Plc is a 100 per
cent foreign owned bank
established by financially
sound an9 leading integrated
financial specialist group,
Hwang-DBS (Malaysia)
Berhad. One of the major
shareholders of Hwang-DBS
(Malaysia) Berhad is DBS
Singapore. DBS is the largest
bank in Southeast Asia by
assets and the bank's strong
capital position, as well as
"AA-" and "AAl" credit ratings
that are among the .highest
in the Asia-Pacific region,
earned it Global Finance's
"Safest Bank in Asia" accolade
for five consecutive years,
from 2009 to 2013.
For business strategy,
Hwang DBS gives loans to all
kinds oUocal businesses such
as retailers and wholesalers
of consumer goods,
electronics equipment,
machines, spare parts and
other medium sized business
such as car washes, garages,
hotels and restaurants;
contractors, manufacturers
and businesses linked to the
agriculture sector.
The Bank provides our
depositors with ATM cards for
their convenience. We have
plans to introduce internet
in the future, Han says .
The bank has an ATM
expansion plan, with five now
in place.
At Cambodian Public Bank, we know that buying a property is not a simple undertaking. It is
c0stly and complex at the same time. That's why we want to make it easier and faster for you to
own your dream home with our flexible home loan that can be customised to suit your require-
ments. Whether you are thinking of getting your first house or getting another, you can enjoy easy
and affordable financing scheme that best meets yoUF financial needs.
Our home loan offers the following b.enefits:
Very competitive interest rate in the market Free credit card dUFing the entire loan tenor
Combined housing loan & overdraft facility Fast approval
Lean repayment period of up to .15 years or age 65 Multiple payment channels
Margin of advance of up to 70%
And many more ...
Extra protection with Smart Home Insurance
Terms and conditions apply
Website: www.campuba' I Publlc Bank branch
cAMeoo1AS:PUeuc BANK

General Manager of Hwang DBS Commercial Bank, Han Peng Kwang.
"We are also in the process
of putting in more ATMs in
Phnom Penh City to provide
more convenience to our
customers," he said. "We also
want more branches
going forward, venturing
out into the larger provinces
including Battambang, Siem
Reap and Kampong Cham."
Han said the bank also
plans to launch a trade service
product to complement their
existing services.
"We currently have Term
Loan, overdraft and housing
loans, and we want to expand
that to provide more services
to our customers."
Han hails from Malaysia,
from the state of Perak
located just below Penang.
Formerly with a
commercial bank for over
14 years before he joined
HwangDBS, Han first came
to Cambodia in 2005 and has
seen the landscape change
considerably since then.
"Now there are so
many high-rise buildings
throughout the city and
the country has received
lots of foreign investment
particularly from Korea and
China," he said.
As for operations, Han said
HwangDBS has a team of
marketing officers who go out
and introduce the bank in the
"Our branch managers
also go but and introduce
our bank to all the people
- j n the street. Moreover,
satisfied customers wiffalsb
start recommending their
friends and rel\l.tives to bank
with us. "
HwangDBS intends to
recruit as many Cambodians
as possible to fill up the
positions in the Bank.
"Maybe one day, one of
them will be able to take over
my posit!-on as well," Han
said. Ill
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"':..,,.. ..;:

Lar2est MF'I s.ees, increasing
Q and A with Sim Senacheert,
President and CEO, PRASAC-
Microfinance Institution
When did Prasac start in the PRASAC Staff
business and what are some created by staff members to
milestones along the way to facilitate the transfonnatie.n
your present situation? pmcess. _
2004: Regisi'ered as PRASAC
MFI Ltd with Ministry of
Commerce as a private
limited liability companv and
received license from NBC.
PRASAC was a credit
component ef the formeF
PRASAC (Programme de
Rehabilitation et d'Appui
au Secteur Agricole du
Cambodge) project started
in 1995 as a support program
for the agricultural sector ..
in Cambodia, covering six
provinces around Phnon.i::. _ ...
Penh which was a
development project i.rl
Cambodia, fnc;l.ed by,Th
European Union. whole
PRASAC project w&s phased!_'
out in Decernbet.2P03, '
except its credit eoinponent
continues operC!,tiens Wlder
the name PRASAC Ct edit
Associationc(PQ\). and was
finally transformed a
licensed MFi in.December
2004 under ilie:hame of
PRASAC Microfinahce
fustitUt:l.on. The followings are
the milestone:
1995-1999: FRASAC I,
EU-funded -three rwial
developmen"t . .ptpjects in,1>ix .
credit' comp,onents.
2000-2003: Extension .
as PRAsACIT combhied
to one project, one credit
2000: First strategic decision
to create a sustainable
institution beyond the closure
of PRASAC II project
200'1. : HO andlbrant<:h offices
separated from PRASAC II,
with separate management
but still undeF umbrella of the
project management.
2002: The establishment of
PRASAC Credit Association
(PCA) registered with the NBC
in March 2002 as Rural Credit
2003: TWo fuitial
sharehelders were created,
a Trust Fl!lpl.el called CRDF
created by PRASAC II and
2006: The commercialization
pr.ocess was to.seeldor equity
. and social
- -
2007: PAA$AC completed its
' tr.ansformation with new five
interiiatianal shareholders,
$IO; DCG, FMO, LOLC, and
2008: PRASA([; increased its
capital to 15 billjon Riels from
six shareno'lders. PRASAC was
:rewarded for extending its
fi:nap.eial serVi.ces throughout
.the country.
2009: PRASAC selected
Oracle Flex cube to
modernize its core system to
build. competitive advantages,
offer more diversified ranges
of prnducts and prepare for
the next level'.
2010: PRASAG obtained
a-Microfinance Deposit
Takinglh,stitution ("MDI")
license tq conduct deposit
talPng business from the
Nationai Bank of Cambodia.
And PRASAC increas&i its
registered capital from 15.4
billion Riels to 80 billion IRiels.
201!1.: Launch of 5 additional
2012: Launch ofA<FM service
and become the first MFI
offering ATM to clients in the
What interest rates do you
offer for savings accounts in
Cambodian Riel?
The followings are our
current interest rate of
Cambodian Riel {KHR)
offered to the depositors:
How is the growth during
2012? Do' you expect more
""'"" -v-
-1'"")'-.. ..,., ::.t:!:
A Prasac Microfinance team delivers a show duling a product event lastyear at Sofitel
growth in 2013?
The deposits grew above
800 per cent from. US$5.9
million to $56. 7 million at the
end of December 2011 and ,
December 2012 i:espectively.
We expected that 0.eposits will
grow as per our projections,at
200 per cent. As of April 2013,
our deposit grew about 74 per
cent compar-ed to December
Demand Deposits
Are you seeing more competi-
tion in the marketplace?
Yes, we see that there
is more competition in
the marketplace. 'Fhe
competition conies ,fi;om
expansion of the existing
MFls, new established MFis,
and commercial downscale
the operations. More
com.Petition is good for the
end-users (clients) . But, it is
Term Deposit (Monthly Interest) 5.25% 6.25% 7.25% 7.75% 9'. 50%
Term Deposit !Interest at Maturity) 5.25% 6.50% 7.50% 8% 9.75%
What are the challenges in the
microfinance marketplace in
Microfinance marketplace
in Cambodia faces some
challenges including the
increase of competition, .
limited funding sources and
high cost .of funds.
not a co'ncern for us because
we have large operal'ional
area (nationW:ide coverage),
big office networks,
diversified products, more
than 15 years' experience
in the sector, and strong
branding in the sector as
How many itotal staff do you
have and how rmany branches
SMEP 0 11 ;Services
Managing payroll is very time-consumingr for businesses.
Our payroll serviees help manage your payroll needs, freeing
you and your staff 'to focus on what really matters - growing
your business.
Key b!"nefits:.
Fully managed payroll services, and tailored to your business.
Accurate payroll processirag.
Fast, efficient and cost-effective.
around Cambodia?
As of April 2013 PRASAC has
2,507 staff and 170 office
networks operating ill all
provinces oft!1e country.
How many ATMs doiyou have?
Where are they?
As of April 2013, PRASAC
has 29 ATMs. 13 ATMs are
located in Phnom Penh
and 16 ATMs are located in
provincial branches. This
year, we planned to add
another 30 ATMs.
What's your percentage of bad
Non-performance loans are
' very stalJle dUFing t:fte past
quarter of the yeaF. As of
April 20]3, the NPL rate was
0.21 per cent.
What's your average loan size
and what's a typical business
you loan to?
As of A:pril 2013 the average
loan portfolio ot outstanding
loan was US$1,844. The
main typical businesses
are agriculture represents
around! 30 per cent of total
loan portfolio; business loan
portfolie represents 45 per
cent, personal loan 23 per
cent, and other activities 2
How do you see Cambodia's
future unfolding in the micro-
finance sector?
I thirue<that the Cambodia's
microfinance sector 1is still
goodl and strong beeal!lse
of economy growth;
clients have more business
activities, increase of the
professional and high
standard of the all MFls,
supportive regulations
Do you see people starting to
have lbetter lives in the prov-
I think that we see people
starting to improve their
living standarel. To S'ome
e'x:tenl 'hitiJ<,fh,, MFI ".
. i lf' '.'"J>,; , . ' fii 1 I, I
also contribute to this
Are you now the largest Mi-
crofinance institution in Cam-
In the MFI sector, we are the
largest in term of total assets,
loan. portfolio outstanding,
office networks, savings and
deposit balance, and we are
also the best performing MFI
in terms of portfolio quality,
productivity and efficiency,
and profitability in the coun-
try as well.
To what do you attribute your
A. I think that there are
many factors, but can be
summarized as follows:
Support from the
government, and especially
local authorities
Enabling regulation
environments, strong and '
supportive regulators
Loyal and discipline clients
Strong governance structure,
good and supportive
shareholders and the Board
More professional and
high committneqt staff and
Strong institutional capacity
ie, internal control, policies,
What are the long ferm pros-
pects for microfinance in .
I think that after gone
through all the difficulties
and challenges in the past,
microfinance in Cambodia
is now on the right track
and right direction,
therefore, I think that it will
continue growing in the
sustainable manner and
.continue to contribute to the
development df the country
by providing access of the
,hanking serVices to .the
unbanked people, especially,
in the rural area.
The Prasac may be
viewed at
,. ' . j l l ;, ', ,.
J ,.
MID-uhan Japan B'ank focuses o.n service
Q and A with General Manager Shizuo
What segment of the marrketplace is
MARUHAN Japan Bank going for?
We are currently focusing on
a customer base of mainly small
and medium sized, local Khmer
businesses who have taken out
personal (mainly savings) accounts.
The areas of the marketplace that
we are currently working for are:
Students and otherytmngpeople
- for loan products to finance
their education of their fust bank
account, agricl!lltural hmsiness:
predominantly rice millers,
importers and exporters as well as
loan and business products, clinics,
hospitals and medical business
prodm;:ts, manufacturing, hotels
and construction. The owners and
staff of-these kinds of businesses
are our customers, often with
commercial loans.
How long have you been Jn Cam-
We opened on May 22, 2008.
What currency accounts do you offer?
We 'have a comprehensive range
of accounts in USD, KHR, JPY,
EUR, GBP, AUD and other major
global currencies for ,personal and
business customers. For personal
customers we have everyday
accounts that allow day-to-day
money management efficiently and
securely and these accounts include
anA1M card and a passbook.
Our premium saver accounts
are interest-ibearing accounts with
the option of a savings passbook
and an ATM card. We also have
checking accounts. With our tiered
investment accounts, the more
customers sav:e, the higher the
interest we give them. This is great
for maximizing interest returns on
money held for short peFiods.
We also have term deposit
accounts which are fixed-term
deposits that offer a low-risk
way for investors to earn a
competitive, guaranteed rate of
interest l!ln deposits. We also have
personal .loans which i;;an help
people finance special purchases
or cover essentials such as
children's education fees. There
is no minimum or maximum size
ofloan and all loans are subject
to discretion. We work hard to
ensure we lend responsibly and
one of our "relationship officers"
helps people make the best
financial decisions based on
their particular circumstances by
providing effective advice on how
much they can afford to borrow
based on an .assessment of their
disposable income.
For business customers
including sole proprietors, limited
eompanies and organisations we
have checking accmmts, tiered
investment accounts, term deposit
accounts with terms from one to
36 months and a "Term Deposit
Certificate" can be used to secure
credit facilities such as letters of
credit, bank guarantees, shipping
guarantees, overdrafts and other
Maruhan Bank also offers
corporate and commercial loans
which are appropriate for starting,
managing or growing businesses
of any size. We .provide quick
decisions ane appropriate and
flexible repayment terms and we
accept a range of collateral types.
Interest rates are competitive and
flexible (fixed or variable) . The
application process is designed to
be simple and easy to understand
is supported by our dedicated
and highly trained Relationship
Management Team.
. Ol!lf overdrafts provide short
term support for a business in
times of cash flow difficulties,
when additional working capital .is
required for business development
or to help consolidate existing
debts. Interest is only paid on the
amount drawn.
We issue bank guarantees
which are guarantees issued by us
for an account holder where we
agree to pay a beneficiary up to a
guaranteed sum when a valid claim,
as dictated in the terms of the bank
.guarantee, is received. These are
usually issued in lieu of advance
payments or cash deposits. This
guarantees a customer's capability
to meet payment obligations
and makes them a more credible
and attractive trading partner. It
also removes the necessity for a
customer to raise cash to meet
deposit and allows
funds to be used to support working
capital requirements.
Our pnivate banking is our
unique elite banking and wealth
management service provided
by a dedicated private banking
team who commit to providing
customers with a personalised
and integrated service based on
unique, long term relationship that
allows us to partner with them to
provide unparalleled quality advice
and unprecedented levels of our .
customer service.
Fo11 example, pFivate banking
customers get a waiver of minimum
balance and other fees, offsite
account opening and management
at their home and/ or office, free
account opening and waiver of
maintenanee fees, preferential
interest rates,. specially designed
personal and business.passbook(s),
increased daily A1M withdrawal
limits (up to lJS$5,000), prioritised
customer service, a fully: cash-
secured overdraft facility on
request, Uil]nrited
deposits and withdrawals.
We also have interest bearing
deposit accounts for financial
institutions, a unique range of
interest bearing depl!lsit accounts
that offer highly attractive and
preferential returns on investments
made by financial ip.stitutions.
These targeted, customer-
centric acwunts are serviced
by a dedicated relationship.
management team, who are
specially trained to serve banking
What would you like the public to know
about MARUHAN Japan Bank?
' We have superior and
unprecedented levels of service.
We classify ourselves asexperts
in 're)ationship banking'. This
means we focus on providing
our customers with unparalleled
standards of service, performance
and global reach. We takethe time
to know customers and tailor
everything to their individuaI needs.
Each customer has an experienced
member of staff to take care of their
needs that they can contact at any
time and whg will be familiar with
their financial. and banking history,
financial aims and needs and who
is ready to deal with whatever they
need immediately. We have already
set new industry standards in this
area since 'entering the market
and are committed to continuing
to drive up standards of customer
ASEAN Strategy- In the last 12
months we have launched our
Group overseas network offices
in Myanmar, Lao PDR and
Singapore. We now have a strong
presence as a sophisticated
financial services provider across
the ASEAN region and are the
only international banking group
to have this kind of financial
business service network in
ASEAN. We see ourselves as an
industry pioneer and are serious
about 1mntinuing to deliver on
the promise we have made to -
revolutionize the ASEAN banking
industry. By 2015, when the
ASEAN member nations have
fulfilled their commitment to
improve economic integration
between the membe11 cou.ntries,
we plan to serve the new, inter-
connected ASEAN' region as the
established leader in its financial
We are the first ever Cambodian
commercial bank to have a
microfinance business partner
(Sathapana Limited) within
our Group of companies; and
we believe this represents a
significant step towards the
breaking down of long standing
barniers between the commercial
banking and rriicrofinance sectors
ancl are proud to be the bank
taking that first step.
Is the Cambodian branch part
of a larger MARUHAN Japan Bank
in Japan? How big is it, and what
is its main business?
We are not a branch ofJapanese
Bank; we are a 100 per cent local
Cambodian-licensed bank and
our head office, in Phnom Penh,
is staffed by expert Japanese and
Khmer banking prnfessiona1's.
MARUHAN Japan Bank is part
of the Japanese MARUHAN
Corporation Group.
Maruhan Japan Bank General Manager Onishi Shizuo.
Sathapana which is a member of
the .MARUHAN Group.
What plans do you have for expan-
ASEAN Strategy- Through our
NETWORK, we plan to continue
the expansion of our commercial
banking and MFI networks
throughout' the ASEAN region; so
that, by 2015, when the ASEAN
member natiems have fulfilled their
commitment to improve economic
1integration between the member
countries, we are ready to serve
the new, inter-connected ASEAN
region as the established leader in
What sectors of the Cambodian its financial sector.
economy do you see as interesting
and exciting?
We are encouraged that Cambodia's
economy continues to record solid
growth and that GDP continues
to accelerate. Garment exports
and the tourist, real estate and
constFuction sectors are all causes
for optimism. We also expect to see
increases in agricultural proquet
exports; especially rice, rubber and
maize, following the high priority
put on the agricultural s,ector by the
Do you have an extensive loan port-
folio and if so, what sectors do you.
like to lend into? '
As well as personal loans to
our priN'ate customers, we lend
extensively to a wide range of
industrial sectors and we work
hard to ensure we have balance of
sectors across our loan portfolio
(i.e. the educational, agricultural
predominantly rice millers/
importers/ exporters), medical,
manufacturing, hotel and
construction sectors.
How many people work at MARUHAN
Japan Bank in Cambodia?
There are approximately 100
people working directly for
MARUHAN Japan Bank and an
additional 1800 officers at MFI
What kind of customers are ypu seek-
ing and what kind of services you can
do for them? In other words, how do
you differentiate from other banks?
We are targeting commercial
clients from the educational,
agricultural (predominantly rice
millers/.importers/ exporters),
medical, manufacturing, hotel and
construction sectors for business
products and are also targeting
the owners and staff of the same
businesses as personal banking
customers as well as students to
offer them first bank accounts.
As well as the superior
(unprecedented) levels of
serviceand relationship banking
strategy that we have 1in place,
and which I outlined earlier, we,
are industry innovators and !have
committed to revolutionising
ASEAN banking industry. In
another step towards delivering
on this promise, we are now on
the way to launching our ground-
breaking, highly sophisticated
services -which
I am proud to say will be the
first intemet banking system
irt Cambodia to offer full global
functionality! This will be rolled out
alongside the most sophisticated,
global foreign currency (FX)
services in Cambodia.
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Mayb:fillk: rated.13th strongest
ranked number
13 in Bloomberg
Magazine's third
annual ranking of "The
World's Strongest Banks" in
the June,.2013,-issue.
The banks were ranked
based on several ratios
including capital to risk-
weighted assets, non-
performing assets to total
assets, lban-loss reserves to
non-peFforming assets and
costs to revenue.
!{ere in Cambodia,
Maybank's CEO Lee Tien
Poh was pleased to i;J.ear the
news. In Cambodia for over
a year now, Lee previously
held various portfolios at
Maybank's International
Division and has been
the Head of Overseas
Operations, Head of StFategy
& Business Development
and Head of International
Strategy & Operations, with
Cambodia as one of his
oversight responsibilities
even before he was
appointed as CEO just over a
year ago.
Maybank Group, which
employs 47,000 people, is
Malaysia's l'argest in terms of
total assets with more than
$162 billion. and $25 billion
:in market capitalisation. A
public listed company, .it is
also the large&t company
in Malaysia aqd the major
shareholder is Permodalan
Nasional Berhad, the
investment arm of the
Malaysian government.
Maybank has been
operating in Cambodia
for two now, and
will be celebrating its 20th
anniversary this year.
"It all started in 1993 with
only one branch in Phnom
Penh," Lee said.
"Back then, our business
model was to
Singapore and Malaysia
businessmen. In 2007, we
changed our business model
as we decided to adopt a
long haul strategy to alO
serve the local community
and started to our
From 2008 to 2011,
Maybank added 10 more
bFanches and by 2012, had a
total of 12 branches.
"By the end of2015, we are
projecting to operate more
than 20 branches, with 80 per
cent of them in Phnom Peiih
and 20 per cent throughout
At the moment, the eight
branches in Phnom Penh
are complemented by four
Strength from our past
f"' l./f' v ..c ..
outside, with one each in
Siem Reap, Battambang,
Kampong Cham and
Maybank has also
expanded its ATM network
with. three offsite ATMs, one
at the Bayon Supermarket,
one at the Phnom Penh
International Airport and
one at the Siem Reap
International Airport.
Lee says Maybank intends
to have a total of 40 ATMs in
Cambodia, onsite and stand
alone by2015.
"These are regionally
linked ATMs which means
our customers can transact
at Maybank ATMs in various
regional locations including
Malaysia, Singapore, the
Philippines, Brunei, Vietnam
as weU as Papua New Guinea
at no extra cost.
The bank is set to further
entrench its presence in
Cambodia, expanding its
-reach to serve its customers
nationwide over the next
fewyears. Following
local incorporation of its
operations in Cambodia last
year, it is now in the midst of
buildingi ts capability and
introducing new business
channels. Its total staff
strength is expected to reach
300 by end of this year. In
Maybank's CEO Lee Tien Po)l.
addltion, the bank launched
its internet banking portal
M2U last December 2012
and has set up various new
departments to support
its growth for exampler a
credit and risk management
Lee says there are
in the marketplace that
the demand for consumer
banking products and
services are Oil the rise
because of an emerging
middle class segment.
"People now have more
disposable income which
is in tanP,em with the
country's strong economic
growth. There are a lot of
development plans 1in the
pipeline, including shopping
malls for the middle inceme
families. For convenience,
people from this income
group will need credit cards
and this is where the usage of
credit cards will pick up."
Lee says this growing
segment of young working
adults will need housmg
loans, transaotion banking
services, ATMs and children's
He also sees growth coming
specifically from sectors
like agriculture, education
and medical services. It is
the country's agenda to see
Investing in the future
of our customers
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Foreian Trade Bank of Cambodia
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The World's
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these productive sectors grow
especially agriculture where
the focus is on. the higher
value chain.
"Efforts are being directed
to manufacture finished
food products from the
produce of the lana, for
example noodles and rice
crackers from rice. This is to
ensure that value is added
within the country. The other
important growth sector is
infrastructure development,
the improvement of roads,
highways and railway lines.
Generally, at Maybank, we
support the productive
gi;owth sectors of the
country," Lee said.
Maybank now offers
consumer and business loans.
Lee says that granting trade
financing facility to support
local businessmen is also
among Maybank's agenda.
As at end December 2012,
Maybank Cambodia's loan
portfolio surpassed the
US$200 million mark and its
growth outpaced that 0f the
banking industry:
"We deal in US dollars
at the moment, and we are
already having an ipitiative to
offer Khmer Riel accounts,"
he said.
Back when he was
overseeing the 'Cambodia
operations from Kuala
Lumpur in 2008, Lee saw a
need for local banking talents
to support the expanding
growth there.
"I was initially puzzled
why we couldn't attract local
135.6 I 86.6
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56. 0
0.1 I 203.2 I 81.8
0. 8
121.4 I 83.l
l .l
10.6.7 83.5
82.9 84.2
105.0 86.0
212.7 59.9
9Q.8 93.8
56.4 33. 0
271.3 90.8
103.6 83.6
53.3 48.3
0. 5
186:9 63.2
64.l 49.3
295.5 I 87.0
1 66.9
0.5 I 250.7
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talents. The market probably
at that time did not know
us well and felt we were not .
expanffing our operations
Since then, Lee has headed
an effort to hire talented
people who have more than
five years experience in
banking and let the word
of mouth spread around
that Maybank has changed
its business direction'and
expanding aggressively.
"We hin;:d sotne key
talents and this started to
change people's perception
of Maybank. Since then
we received overwhelming
requests from people wanting
to join \lS. There are many
young Cambodians who_ were
educated overseas, and to this
group it is not so much about
compensation and benefits
but our compelling vision
and mission and how they
can grow with us. They are
young and they want to make
progress," he added .
One 0f the key
differentiators for Lee in
a market of more than
32 commercial banks 1is
Maybank's mjssion of
humanising financial services
in Cambodia. Humanising
would mean providing people
with convenient access to
financing with faiF terms and
pricing, advising customers
based on their needs and
being in the heart of the
community they operate.
"In order to illustrate
being in the heart of the
community, apart from
been a socially responsible
corporate citizen, when
we develop products
and services we think of
customers needs first and
that the products and
services will bring value to
them. The profit element is
the c0nsequence of our effort
to serve the C0mmunity."
Maybank Cambodia's
vision, accordi,ng t0 Lee is to
be the first-choice financial
services provider in the
"First choice would mean
whenever an existing and
potential customers look
for banking products and
services, Maybank ii) a first
choice as we walk the talk on
our mission. We treasure long
term business relationships
and promote a win-win
situation for us and the
"!tis common to hear
people say that the customer
is number one. We always
tell the customer that we
need to win together in order
to sustain our relationship.
When we share this with
many of our customers, they
firmly acknowledge it and
confirm that we are the bank
they want to deal, with in the
long term," Lee said. 1111
Y- V T<\T"I
Success facto:rs fo,r C'ampu b
reflected in its leadership style
NE of the reasens
Public Bmk has
been successful
is the strong
corporate' governance and
policies advocated by Pub.lie
Bank Group chairman, Tan
Sri Dato Sri Dr-Teh Hong
Piow, who just celebrated his
83rd birthday on Mareh I.) in
Kuala Lumpur.
Campu Bank Country
Head Phan Ying Tong says
the chairman is beloved by
both employees and the
public, a sentiment he says
has enabled the 'bank to grow
over the years.
"We love a boss like
him: generous and always
Another of the chairman's
contributions is a eulture
of rewarding people who
turn in good performance,
according to Phan.
"One very important
quality of Tan Sri's leadership
is he rewards people who can
perform; who achieve results.
So that shapes the culture of
the bank."
Phan says that the culture
goes right through Public
Bank @d its Cambodian
subsidiary, Cambodian
Public Bank, also known as
Phan says a good
culture will ensure that
any organisation will go
in the right direction and
consistently perform.
"We are talking about
our responsibility. This
is a culture that has been
inculcated into the staff.
Everyone takes up their
own responsibility and
is happy doing their job
responsibly. Everyone has
a goal t be efficient and
achieve the goals set by the
chairman, and at the end of
'iile day, they are handsomely
rewarded," Phan said.
"We inculcate a
performance-based culture
where rewards are correlated
to the delivery of superior
performance and we pay
good bonuses, ,grant overseas
trips for all levels of.staff and
we .offer careelJ .r>aths and
Phan: said the meritocracy-
driven career iprogression
eeupled with priority
accorded to internai filling
of vacancies by existing
well-trained, qualified and
experienced staff have
created a workforce that is
passionately performance
"Our people are
seeking career paths and
advancement within the
bank. This is evident from
the low staff attrition
rate of7 per cent in 2012
and 100 per cent of our
managerial appointments
were promoted from within
Campu Bank."
In 2012, Campu Bank
earned $35 million in before-
tax profit, up more than $5
million from 2011.
Phan thinks that the trend
will .continue because of the
good furidamentals of the
Cambodian economy.
"I think Cambodia's
economy will continue to
do well with GDP growth of
not less than 6.5 per cent
in 2013. A'lot of foreign
investors continue to come
in possibly because doing
business elsewhere is getting
more costly like in China and
also due to the favoill'able
conditions and incentives
offered by the Government"
Phan said.
"We also see in Cambodia
more Japanese-owned
manufacturing companies
coming in a big way. May be
Cambodia is beginning to see
a change from the traditional
garment and textile
based economy to a more
technology based economy."
He gave the example
technology-based direction
and not so much a labour-
intensive base economy in
the long term."
Phan said the development
of a technology-driven
manufacturing base is
complimented bythe
parallel development in
the construction and real
estate sectors as well as the
agriculture and rice sector.
"The prime minister is
now talking about rubber
and I think this is a very
good choice to promote the
economy given the suitable
climate of the country. We
don't just rely on just one
agriculture product to grow
the economy."
Phan says there is more
and more competition in
the banking sector which is
getting keener than other
sectors today.
Phan says bankers need
to maintain a high degree of
professi0m.alism to ensure
that loan borrowers make a
more informed decision. For
example, borrowers should
be advised as to how much
they should borrow based on
the actual business needs or
private investments required
and not to over or tlllder lend
to the borrowers.
With more competition
coming into play through
entry of new banks and
opening of new branches
by existing banks, bankers
should not sacrifice
asset quality for quantity
otherwise they would be
saddled with bad asset
quality which will translate
into bad debts.
Campu Bank lws 25
campu Bank Country Manager Phan Ying Tong.
human capital which is still
a challenge in the industry.
When OU want to open
more branches, you need
to have the right managers,
skilled and experienced
staff especially1in credit and
marketing and so on."
Some of the coming
plans are introducing
children's savings accounts
to inculcate savings habit
plans is to roll out instalment
plans for purchase of
consumer and household
goods including computers
and electrical items but
card holcil.ers only need to
pay by instalments with no
interest being charged for the
Campu Bank will
announce the "Merchant of
the month" on their website
to inform customers where
they can get more value for
their credit or VISA debit
" For us we say this is our job, we
will finish it no matter how many
hours it will take:'
for parents on behalf of their
children and also to launch
''Customer Care Campaign"
to create greater awareness
on the importance of good
customer services this year as
well as ongoing introduction
of more promotions for
credit card products from
time to time.
"For example, we will
continue with our tie-up
programs with merchants
to offer special discount to
our cardholders," Phan said.
"For example, at Almond
Hotel you can get 10 per
cent discount for food and
beverages spent at the
Another deal is with Sime
Darby Medical Centre from
Malaysia whereby a very
special discount on medical
fees will be offered to its
Platinum card holders.
Bank employs
more than 600 people and is
among the top three banks
in Cambodia in terms of
asset size, business and
performance, Phan says.
................................. ....... .
of the Japanese-owned
Minebea Company which
manufactures small motors
at the Phnom Penh Special
Economic Zene.
"I think Cambodia is
starting to move into a more
branches throughout
Cambodia and Phan says
there are plans to open more
branches in strategic and
viable locations.
"We will continue to
expand and of course, we Another of Campu Bank's
Canadia SME Banking
Products and Services
In 2012, Campu Bank
was awarded "Domestic
Retail Bank of the Year
in Cambodia" for its
management excellence by
Asian Banking & Finance.
Also in 2012, Deutsche Bank
awarded Campu Bank the
"USD Straight-Through-
Processing Excellence
Award" for exceptional
Since 1991 Canadia Bank has been helping our quality in the _processing of
clients reach their financial goals. With over 20 payment messages.
years of commercial . banking experience, we , Phan expresses optimism
understand that your business is unique. So we in Cambodia's economie
have made'it a pointto offer solutions that address , growth for the next few years
your specific _needs. Take a look and let us know I for a number ofreas1ms,
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Canadia SME Banking Includes: shown by Cambodians to
own affordable homes.
Deposit Services
Business Lending Facilities
Trade Finance Services
Payroll Services
Tax Payment Services
Local and ln.temational Remittance
Foreign Exch_ange
"We are seeing more
developments in the
Sp-ecial Economic Zones
especially in Phnom Penh,
Preach Koh Kong
and Bave1, infrastructure
cl:evel'opinents in the .
constrw::tion, d'thy("power
dams and stations and
bridges, i;eeonstruction ef
Failways and .r.eha.bilitation
.. ..of, the roaiis linkiilg the key
r'1\ <. . T.r_ .. .J- __ o .
routes for transport and
export of goods.
Phan says he's optimistic
about the health of Campu
Bank subsidiaries Campu
Lonpac Insurance and
Campu Securities which he
says will also benefit from
the favourable economic
conditions and development.
"We see more business
more flights
coming into the country by
new carriers, more toimists,
and more investors. We
hope that the.government
will continue to promote
its liberal business policies
and improve the investment
climate to make Cambodia
one of the most "business
friendly" countries in the
region which would enhance
employment opportunities
and improve human capital
in the long term."
Phan complimented'
the NationalBank of
Cambodia for regulating
the banks efficiently and
also for implementing
sound monetary and fiscal
policy prudence to promote
macroeconomic stability, as
well as the CDC.
"We appreciate the Council
for the Development of
Cambodia for their active
role and competence in
promoting competitive
and attractive tax incentive
program to attract new
foreign investments into the
country," he said, citing the
granting of tax exemptions
for three years each time for
a total of nine years.
Another factor in the
improvement of Cambodia's
financial landscape,
- Phan says, has been the
introduction of the capital
market under the supervision
of the Securities Exchange
Commission of Cambodia in
"The capital market has
provided opportunities
for business enterprises
to raise capital for their
business expansion in
Cambodia. Campu Securities
is principallyinvolved
in securities trading and
underwriting," Phan said.
One of Cambodia's
challenges today, Phan says,
is to nurture and strengthen
human capital.
"Human resources make
a difference in productivity
if you have skilled and .,
knowledgeable staff in evei;y
sector of the economy. It is a
priority for all sectors of the ... intensifyeffoiits
to build up a strong human
capita). in Cambodia."
. Phan was happy to have
recently completed the
Masters degree in Banking
from the University of
London, with the support of
his company and his family.
He said-it was an example of
the importance of training
for people at all levels.
"LeaFning is the spring
board !'!UlployE:e stays
abreast with new skills. and
knowledge, embrace the
inevitability of change as well
as sustain ifs relevance." Ill
. ii