The evolution of the banking sector in Cambodia: Reliability and innovation at the forefront

The Cambodian banking sector is undergoing a profound transformation, emerging as a regional leader in terms of trust, innovation and ethical practices.

By focusing on digitisation, cybersecurity and financial inclusion, the sector is paving the way for sustainable growth while fostering long-term consumer confidence.

The digital revolution for financial inclusion

The National Bank of Cambodia's (NBC) Bakong payment system has changed the game by integrating e-wallets, mobile payments and online banking into a single platform. In 2024 alone, mobile transactions increased by 334%, reaching 608 million transactions worth $457 billion, an increase of 127% on the previous year. This digital evolution has played a key role in extending financial access to underserved rural communities.

‘Digital payments are transforming financial inclusion in Cambodia, especially for underserved communities,’ says Dith Nita, President of the Cambodian Microfinance Association.

Platforms like Bakong are making financial services more accessible and affordable, filling the gap in rural areas.

Cybersecurity and regulatory transparency

As digital banking develops, the focus is on security and regulation. The NBC has introduced blockchain-based frameworks to encourage innovation while preserving financial stability. Collaborations between the Association of Banks of Cambodia (ABC) and the CMA have also prioritised consumer protection and financial literacy initiatives to ensure a resilient financial environment.

Ethical banking practices

Ethical banking is at the heart of Cambodia's financial development. Recent reforms ban the use of indigenous communal land titles (ICLT) as collateral and have set up a consumer financial centre to support borrowers in distress. ‘We are committed to ensuring access to financial services while respecting transparency and social responsibility,’ says Rath Sophoan, President of the ABC.

Technological innovations

Institutions like Wing Bank are leveraging cutting-edge technologies such as artificial intelligence (AI) for real-time credit decisions and electronic know-your-customer (e-KYC) systems. These innovations streamline customer experiences while strengthening security measures. Wing Bank's collaboration with CamDX further strengthens digital identity verification processes, aligning with the government's digital economy policy framework.

A growing financial ecosystem

Cambodia's banking sector boasts assets worth $77.4 billion - 243% of GDP - as well as significant growth in credit and deposits. The sector now supports more than 2.2 million borrowers and 3.3 million depositors through a network of commercial banks, microfinance institutions (MFIs) and rural credit operators.

A model of regional excellence

By combining technological advances with ethical practices, Cambodia aims to position itself as a model of regional banking excellence. Its solid digital infrastructure, transparent regulations and commitment to inclusion are attracting global investors while instilling confidence in local consumers.

As Cambodia moves closer to its goal of becoming a high-income country by 2050, its banking sector is becoming a cornerstone of economic growth and societal development, ready for the future but also anchored in stability.