9

TI IP. 1'1INOM PENII POST I-VrunTAIt\' 26, :!o1:1

Business
Local MFIs' hig -tee investment
Hor Kimsay
T
HE FlRSTti llle Leimg
Horng, a resi del1 t ()f
Kandal province's
Saang dislrict, made
use of a micro-finance instit
ution, a loan was the only ser
vice he needed. At that time,
Horng had no idea about de
posits or money t
But thi ngs have changed
in the past few years, and his
family's slandard uf living is
getting better.
"Besides Itaki.ngJ loans, J
opened a account at
a micrQ-finance institution,"
Horngsays.
His e:l:periellce reflects a
trend in the Cambodian MFI
ind ustry, as players hmle up
graded their tactics to remalll
competitive in Ule market.
Product diversi fica tioJl is
becoming a key strategy to
satisfy MFls' cllstomers.
Technologies such as mob
ile banking and ATM services
are becoming compulsory for
leading MFls.
Insiders say this is boost
ing competiti veness in the
industry and opening up new
sources of fund ing ro r micro
finance insti tuti ons.
"It's defi nitely an l'lllcrgi ng
trend, aDd one that's qu il e
challenging for the Camhod
ian MFI industry when we talk
about. banking technolugies
like online systems [where fi
nancial information is stored
in a central system]. ATM
networks and mobile phone
[banking]." Sean Thornnin,
a lecturer in economics at
Limkobving University and a
management-team member
at a leading MFJ. said.
"Leading players need to
consider more investment
in banking technologies to
maintain their position. Oth
erwise, lhey may lose out."
This is already happening.
Earl y last year, Angkor Mikro
heranhvatho Kampuchea
[AMK), a leading Cam bodian
M FI in !elms of the ownber of
began offering mo
bile barrki ng services Ihal allt)w
customers til dept)si l money,
make payments and rransfer
money by phone.
"We have an agent in ev
ry village our mobile bank
ing service operates in, so all
operations are made through
the agent," AMK operations
manager Mam Choeurn said.
Last September, Prasac, the
leading MH in terms of loan
port folio, launched an AIM
service. It was the ihst loca]
MFI 10 introduce this relat
ivel y high tech product.
l hcs.c I wo M Phi are not
Prasac was the fi rst micro-finance institution in Cambodia to taunch an
ATM service. VIREAK 1.\11,
exceptions, according to Dr Association (CMA). He said
Bun M()IlY, chairman of the several leading Cambodian
: ambodian Microfinallce ivU'ls, in cl uding Hattha Kak
sekar, Sathapana and Amret
were also adopting the high
tech approach.
Mony said each institution
had spent about $2.5 mill
ion investing in core bank
ing systems in order to set up
centralised information man
agement systems that record
every transaction made at
branches arow)d the country.
"\"/heo they spend their big
budget on core banking sys
tems, it's pretty clear they wiJi
soon launch an ArM service,
mobile banking or some oth
er banking product," he told
the Post.
"ATMs and mobile banking
can help our cll stomers access
better financial services and
attract more people to open
savings accounts with us."
Mony's view is proved by
Prasac's perforrnam;e in 2012.
l3y the end of last year, the de
posit balance had increased
850 per cent, from $5.97 mil
lion in 2011 to $56. 7 million,
thanks to the launch of ATMs
in September.
"Our clients can easily de
posit and withdraw money
though our offices, paJ! iCII
larly our new ATM services,"
Prasac Microlinance presi
dent and CEO Sim Senacheert
said, highlighti ng the benefi ts
of ATMs for deposit
Hattha Kaksekar Limited
(HKL) , another leading MFI
that plans to become a com
mercial bank by 20l3, has al
ready installed 20 ATMs and
plans to add 15 more by the
end of this year.
HKL general manager Hout
Iengtong said one of the aims
ofintroducing the la test tech
was to be better posi
tioned for the future.
"It [new technology] helps
us to access cheaper capital
locally and n O[ have to rely
so much on foreign funding,"
Iengtong told the Post.
In Channy, the president and
CEO of Acleda Bank, said MFls'
use ofATMs and mobile bank
ing was a smart move (0 meet
tbe demand for financial ser
vices in the market.
For hi m, the adoption of
cl ever technology m eans in
stitutions can provide fi nan
cial services at any time, even
on a Sunday or a holi day.
"We realise Cam bodian
MFIs are developing human
resources and illiraSll"ucture.
It's definitely a strong mess
age for banks to avoid stand
ing still in Ibe same place,"
Channy sai d.
"More competition is guod,
because clients will get high
quality products and services
from suppli ers."
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