SimChankiriroth , ACCA, CPA, ACMA, CGMA - MBI...REPORT ON SimChankiriroth, ACCA, CPA, ACMA, CGMA...
Transcript of SimChankiriroth , ACCA, CPA, ACMA, CGMA - MBI...REPORT ON SimChankiriroth, ACCA, CPA, ACMA, CGMA...
Financial Technology (FinTech) in Cambodia
April 2017Sim Chankiriroth, ACCA, CPA, ACMA, CGMAREPORT ON
Supportedby:
FinancialTechnology(FinTech)inCambodia
SettingthesceneTheterm‘FinTech’isarelativelynewandmisunderstoodtermintheCambodianfinancialservicesindustry.AsFinTechisgettingmoretractionandattention,financialinstitutionsarelookingmorecloselyatthethreatsandopportunities posedbyFinTech.Regulatorsarealsokeentounderstandmoreaboutthisnewphenomenon.
Thisreporthasbeeninformedbyin-depthinterviewswithcompaniesacrosstheCambodianFinTechspectrum,extensivesecondaryresearch,andinputsfromkeyindustryexperts.Ourhopeisthat ithelpsthereadertobetterunderstandcurrentFinTech developmentsinCambodia.
1. ThePerfectStorm
2. CambodianFinTechEcosystem
3. FinTechinCambodia4. OverviewofCambodianFinTech
Startups
Thisreportisstructuredasfollows:
With the emergence of FinTech in theKingdom, we are witnessing the start of asignificant transformation. The financial sectoris being re-imagined through the lens offinancial technology. This is the “perfectstorm”—FinTech provides an unprecedentedopportunity to close the USD 24+ billion gapbetween the demand for financial services andthe formal supply (ADB Report). Acceleratedadoption of new financial technologies, newbusiness models, and lower barriers to entryon the supply-side can make possible a massiveincrease in financial inclusion.
ThePerfectStorm
Gapbetweenfinancialserviceneeds&formalsupply
AcceleratingTechnologicaladvancement&adoption
TheKeyDriversofFinTech inCambodia
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Source:AcceleratingFinancialInclusioninSouth-EastAsiawithDigitalFinance, ADB,2017. Itisimportanttonotethatthisresearchfocusesonfinancialexclusioninthreesegments:baseofpyramid(BoP);women;andmicro,small,andmediumenterprises(MSMEs). Hence,thegapandimpactmightbegreaterifallconstituentsareincluded
>$24BillionGapbetweenfinancialservicesneeds&formalsupply
>$2Billion
>$1Billion
>$3Billion
Additionalelectronicpaymentflows
AdditionalSavingMobilization
AdditionalCreditUptake
ThepotentialimpactofDigitalFinance
ThePerfectStormFactors
CustomerNeeds(Products)
Needsvs.FormalSupplyGap(ofTargetSegment,US$Billion)
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ThePerfectStormFactors
AcceleratingTechnologicaladvancement&adoption
16m Urbanization:21%(withannualgrowthof2.65%)
TOTALPOPULATION ofpopulationundertheageof25withhighadoptionrateoftechnology50%
Morethan
+43%sinceJan2016(+2m)with45%penetrationrate
7.16mINTERNETUSERS
Laptops&Desktop
46% 49%MobilePhones
5%TabletDevices
+6%growthand173%comparedtototalpopulation
27.6mMOBILESUBSCRIPTION
4.5MILLIONmobileusersconnectedtoFacebook
3.4M 660K 440KSource:WorldFactBook (cia.gov),wearesocial.com/uk/,FacebookInc.,G-SMAIntelligence,GeekinCambodia
INFRASTRUCTUREQUALITY&ACCESSTheadvancementofnext-generationtechnologyprovidesamorelevelplayingfieldforFinTech firmsallowingthemtoworkaroundinflexiblelegacysystemsand“silo-ed”channels.Thishasloweredbarrierstoentry.ThecostadvantageisontheFinTechside.
4MobileOperators
InternetServiceProviders8
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CambodianFinTechEcosystem
CREATORS
SUPPORTERS
REGULATORS
ENABLERS
Growth Compliance
“Cambodia’s FinTech scene is more nascent thansome other markets in ASEAN, but like manydeveloping ecosystems, the match has been lit,”Samuel Hall, Program Director ofStartupbootcamp FinTech. Although only a smallamount of FinTech development and investmenthas occurred in Cambodia to date, the situationis likely to change soon. Many of the necessaryelements exist in Cambodia to develop a strongFinTech ecosystem. There is every reason tobelieve the Kingdom will see a dynamicecosystem develop that can provide broadereconomic benefits.
For this report, we will look at the FinTech Ecosystemin four integrated domains, which include:
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FinancialInstitutions inFinTech/Innovation
Accelerators&IncubatorsforFinTech 0Co-Working SpaceforFinTechStartup 0
BusinessAssociations&DevelopmentPartners
Events/Meetups
OfficeHours&Social
Media
Universities&Academia 0
Investments/Grants
NationalBankofCambodia
MinistryofEconomy&Finance
SUPPORTERS ENABLERS
REGULATORS
CorporatesinFinTech/Innovation + ++
+
Collaboration
+
+
TechnologyInfrastructure 4Mobile
OperatorsInternetServiceProviders8
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InstitutionalTools
LoanComparisonSite
InnovativeCoreBankingforMFIs&Operators
PAYMENTS
FINANCING
INVESTECH INSURTECH
AlternativeCreditDecision&Monitoring
• MobileWallet• MoneyTransfer/
Remittance• Gateways/
AlternativePayments
• P2PPayment• CardProcessing/
POS
0
P2PLending
InvoiceDiscounting
FunctionsofFinancialServiceIndustry
Analytics/Identity/Risk
Blockchain
FinTechs inCambodiaFor this report, Cambodian FinTech Startups are groupedmainly within financial industry verticals. It is important tonote that this verticals’ list is not exhaustive. It is onlyintended for the scoping of FinTech in Cambodia at thepresent time.
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Despite its nascent stage of development,FinTech in Cambodia has drawn significantattention at the regional level. TwoCambodian startups were selected amongthe top ten FinTechs in Asia byStartupbootcamp FinTech in Singapore, fortwo consecutive years.
1.RegionalRecognition 2.InclusiveFinTech
3.Corporateinvestment
Financial inclusion, particularly in thepayment vertical, is the main focus ofFinTechs in Cambodia. This will remainthe case for the foreseeable future,though alternative Financing is gainingpace and SME solutions will also beimportant.
4.FinTechprovidesaplatformforotherindustriestogrow
More than 70% of FinTechs inCambodia are funded throughinvestment arms of corporates. Hence,they are well funded from thebeginning.
The emergence of FinTechhas enabled growth inother sectors, particularlye-commerce and other techstartups.
5.Saving&Insuranceisthenextareaswithgreatpotential
Conclusion
FinTechisnotdisruptingCambodia’sfinancialservices,itisfacilitatingitsdevelopment
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FinancialTechnology(FinTech)inCambodia
OverviewofLocalFinTech Startups
1. BanhJi2. Bongloy3. Komchey4. Morakot5. Speanloy
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BanhJi
Business DetailsPresent Market Currently in Cambodia
Key Client B2B
Revenue Model Subscription revenue & referral fee
CompanyDetailFounder/CEO Sim Chankiriroth
Founded 2016
Country/ City Cambodia/ Phnom Penh
www.banhji.com
BanhJiisafreeandlocalizedonlineaccountingsoftware,builtforASEANSMEs.“WeseektobetheplatformforsupportingASEANSMEssuccess, byfocusingonthreevaluepropositions:• ImprovingSMEs’real-timevisibility &insightintotheirfinancialposition
andperformance;• EnsuringSMEscompliancewithlocalaccountingandtaxrules;and• ImprovingSMEs’accesstofinancethroughdata-drivencreditevaluation
basedonthecapturedtransactionaldata,theconnectivity amongbusinesses intheplatform,andotheralternativedatapoints.”
Vertical:AlternativeCreditDecisions
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Bongloy
Business DetailsPresent Market Currently in Cambodia
Key Client B2B
Revenue Model Transaction fees
CompanyDetailCompany bongloy
Co-Founder/CEO Chanda Pen
Founded 2015
Country/ City Cambodia/ Phnom Penh
www.bongloy.com
Vertical:PaymentGateways/AlternativePayments
AflexibleAPI-basedpaymentsolutionthatenablesmerchantstoacquirepaymentsonline.
BongloyCheckout
Abeautiful,optimized,cross-devicepaymentform,withsupportforsingleclickpayments
BuiltforDevelopers
Whetheryou'rebuildingamarketplace,mobileapp,onlinestorefront,orsubscriptionservice,Bongloyhasthefeaturesyouneed.
Bongloy connectswithbothlocalandinternationalpaymentproviderstoenableyourbusinesstoacceptpaymentfromCambodiaandabroad.
PaymentsinfrastructureforCambodia
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• CapturecreditcardtransactionsseamlesslythroughourAPIinfrastructure• Easilyintegrateswithwebandmobileapplications• OpenandsecureAPI• Scalabletechnologyallowinggrowthandflexibility
Komchey
Business DetailsPresent Market Currently in Cambodia
Key Client B2B
Revenue Model Interest & Service Fees
CompanyDetailFounder/CEO Lem Chan Samrach
Founded 2017
Country/ City Cambodia/ Phnom Penh
www.komchey.com
Vertical:P2PLending
Komchey isthefirstonline SMEloanmatchingplatforminCambodia.TheiraimistoenhanceSME’saccesstofinance.Komchey’s valuepropositions encompass:• Providing SMEswithalternativefinancingforworkingcapital;• Providing reliableSMEcreditinformation;• Openingthedoorforprofessional alternativeinvestmentinCambodia.
Front-end
Creditdecisionengine
SME’s creditdatabank
Verificationservices
Paymentservices
ExternalstructuredtransactionaldataSME
workingcapitalloan
Usersinterface,Dashboard
DatadrivenLoanMatchingplatform
LoanManagementSystem
Back-end
ExternalInterface&APIs
RealtimeSMEloanmonitoring&dynamiccreditriskassessment
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MorakotTechnology
Business DetailsPresent Market Currently in Cambodia
Key Client B2B
Revenue Model Subscription Fees, Package Licensing Fee
CompanyDetailCo-Founder/CEO Sophorth Khuon
Founded 2014
Country/ City Cambodia/ Phnom Penh
www.morakot.it
Vertical:InstitutionalTool
Morakot is a simple, reliable core-bankingsystem for microfinance institutions andbanks. Key features include:
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SpeanLoy
Business DetailsPresent Market Currently in Cambodia
Key Client B2C
Revenue Model Referral Fee & Advertising
CompanyDetailCo-Founder/CEO Yuta Nagano
Founded 2017
Country/ City Cambodia/ Phnom Penh
www.spean-kh.com
Vertical:LoanComparisonSite
Speanaimstobecomeaplatformtoconnectborrowerswithfinancialinstitutions.Hereishowitworks:1) Speanprovides aninteractiveplatformforbothborrowersand
banks/MFIs tointeract;2) Forborrowers,compareandapplyforthebestloanaswellas
improvefinancialliteracy;and3) Forbanks/MFIs, searchandcontactborrowersthroughour
siteasapartofloanassessment andmarketingtool.
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