Making Access Possible

Cambodia Diagnostic Report 2017 PARTNERING FOR A COMMON PURPOSE Making Access Possible (MAP) is a dialogue on financial inclusion. inclusive financial sector growth. At multi-country initiative to support The global project seeks to engage country level, the core MAP partners financial inclusion through a process with various other international collaborate with government, other of evidence-based country diagnostic platforms and entities impacting key stakeholders and doors to ensure and stakeholder dialogue, leading to on financial inclusion, using the an inclusive, holistic process. the development of national financial evidence gathered at the country This report was produced by beed inclusion roadmaps that identify level. The MAP methodology and in association with Cenfri. MAP key drivers of financial inclusion process have been developed jointly was funded by United and recommended action. Through by UNCDF, FinMark Trust (FMT) and Nation Capital Development Fund. its design, MAP seeks to strengthen the Centre for Financial Regulation and focus the domestic development and Inclusion (Cenfri) to foster

Contents

Abbreviation and Acronyms ...... 5 INTRODUCTION ...... 3 In Brief ...... 7 Financial access in Cambodia ...... 8 SNAPSHOT: THE CAMBODIAN CUSTOMER ...... 9 Context drivers of market development ...... 12 Regulatory and policy context in the financial sector ...... 28 Target Market ...... 46 Providers ...... 76 Product market ...... 104 Summary: financial service usage across the four product markets ...... 219 Financial Inclusion Priorities ...... 223 Bibliography ...... i Annex 1: List of regulation in the pipeline or undergoing amendment ...... xii Annex 2 Member List of National Clearing System ...... xiv Annex 3: Table of regulatory authority and permissible activities ...... xvi

PARTNERING FOR A COMMON PURPOSE

Making Access Possible (MAP) is a multi-country initiative to support financial inclusion through a process of evidence-based country diagnostic and stakeholder dialogue, leading to the development of national financial inclusion roadmaps that identify key drivers of financial inclusion and recommended action. Through its design, MAP seeks to strengthen and focus the domestic development dialogue on financial inclusion. The global project seeks to engage with various other international platforms and entities impacting on financial inclusion, using the evidence gathered at the country level. The MAP methodology and process have been developed jointly by UNCDF, FinMark Trust (FMT) and the Centre for Financial Regulation and Inclusion (Cenfri) to foster inclusive financial sector growth. At country level, the core MAP partners collaborate with government, other key stakeholders and doors to ensure an inclusive, holistic process.

About MAP Cambodia

MAP Cambodia represents a partnership between National Bank of Cambodia, UNCDF, FinMark Trust, Cenfri and the National Institute of Statistics for the Development of a Strategic Framework for Financial Inclusion in Cambodia. The National Bank of Cambodia is the Chair of the Inter-Ministerial Working Group on Financial Inclusion Strategy Formulation (IMWG-FISF) which govern the MAP Cambodia project.

Note on the use of the FinScope Survey 2015: Within this document (unless otherwise referenced), demographic, income and financial usage data is obtained from the 2015 FinScope Consumer Survey. A summary report and presentation of FinScope Cambodia is available as a separate deliverable, and the FinScope dataset is available on request for future research at map.uncdf.org.

The Report also uses data from the Annual Report of the National Bank of Cambodia (NBC) and the Annual Supervision Report of the NBC for the year 2016.

This report was produced by beed in association with Cenfri. MAP Cambodia was funded by United Nation Capital Development Fund.

Authors Sujeev Shakya, Sudip Bhaju, Subrina Shrestha, Raju Tuladhar an