WWW.PHNOMPENHPOST.COM THE PHNOM PENH POST• MAY 31 , 2013 BANKING NCE

AC.LE,DA C.EO, helps Myanmar • ri· ' • . • create micro: 11nance assoc1atio·n

II OLLOWING a trip to Yangon to attend a micro finance cenference '

sponsored by the MyaRmar government and UNDF, ACLEDA .aank CEO In 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 Naypyidaw.

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 ili.at in order to have good regulation in Myanmar, they could.open 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 debate."

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 to·ln Channy.

The Myanmar office of · ACLEDA Microfinance : employs 45 people, including 35 Myanmar staff and 10 . Cambodians.

"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 said. · There are 142 licensed microfinance enterprises licensed in Myanmar which are local, and two for~ign: one ACLEDA and the other Aeon Mic;rofinance.

The Myanmar Microfinance Supervision Ent~rprise (MM$E) operates under Myanmar's Ministry of Finance and Revenue which oversees the Central Bank, which .in turn regulates .commercial banks. MMSE.is also und~r the same ministry, but in a different department.

In Channy sat down for an interview last week, having just returned from his three­day trip to Myanmar.

"My suggestion for microfinance in Myanmar was that to have good•iregulation 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 said.

Within Cambodia, In Channy says ACLEDA Bank

' · ·has grown into ·the position

of market leader because oflistening carefully to customers and implementing their suggestions when possible.

''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 expansion.

"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 touched.

"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 n ow 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 successfully."

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 met•with 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 currency."

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 foans."

1n addition to .. his p0sition as CEO oEACLEDA Bank, In Channy also serves as co­chair 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, whatwe·cannot, 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. issue·VISA credit carets to about 300 of our customers."

In Channy said'ACLEDA ' ~had injected additional pai~

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 total.to 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 experiencesofhowthey beeame successful in a meeting with people from Bangladesh and. Indonesia along with• the Myanmar people.

"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

s

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 they·expected to have it done in the first half of2013."

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BANKING I FINANCE THE PHNOM PENH POST• MAY31, 20i13 WWW.PHNOMPENHPOST.COM

Banking, most transp:arent industry in the Kingdom T

HEDeputy 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 Boulevard.

''.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 f©r 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 people.

NBC is an independent regulatory and supervisory

organisation, not under any ministry.

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 landscape.

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 banks.

"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 Cambodia•coming 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

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WWW:PHNOMPENHPOST.COM THE PHNOM PENH POST• MAY 31, 2oq3

Int erest Rat~ Trend in KHR Interest Rate Trend in USO

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--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, Wiirn.ing sign alongtb.e road.''

BANKINGI RNANCE Number of Offices of Cambodian banks As of December 31 , 201 2 Table 1

Commercial Banks 1 Acleda1Bank Plc.3

2 Canadla Bank Pie.

3 Cambodian Pu~_llc Bank Pie .

4 ANZ ROY.Bi Bank (Cambodia) Ltd.

5 Singapore Banking CorporaUon Ltd. 3

.s May Bank (Cambodia) Pie.

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 Dev~Lopment of· Cambodia Plc.2

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 P~nh 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 Asia Ban~ Ltd.

25 Kook.min Bank G,ambodia Pie.

26 Maruhan Japan Bank Pie.

27 Shinhan Khmer Bank Pie.

28 Bank of China Limited Phnom Penh eranch* 29 Mega lntematlon@I Commercial Bank Co., Ltd.•

30 ICBC Limited Phnom Penh Branch•

31 MB B<!nk Plc.Ptlnom Penh •Branch*

32 SH~ Bank P-lc. Phnom Penh Branch*

Sub·tOtal - ---- --

Total

238 39 2~

17 16

• 12 11

' 9 11 6 7 5

4 6 4

' 5 3 4 6 2 1 1 1

I 5

I 1 1

I 3 I 2·

1 1

1• 1

-- 448 -

-

2012 r 20111

I Phnom If I PhnOm I P•;ovlnclal P 1 Provlrfclal Total Penh1 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 · 5 1 9 5 4

8 3 7 • 5 2

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

II

1 1

3 1 1

2 1 1.

1 ..

1 I

1 I -1

141 307 ' 4104 12.3 __ ~ - . 2-91 ' -

-

II

I

"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 · appliances."

Some oftb.e recent work Of the NBC ;includes the development of th~ "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' Speclatized Bank ·, ~ - 11

--1•

- ·11..,.. - l' If 34 Anco 'Speblallzed Bank •' 'f I 1 .1.- , 1·

35 Tomato S~cialized Bank ,,

' ' 1 1· 1 .1·

I ,.

36 CAM,KO Specialized Bank _ 1 1 I 1 1 I

' 37 Rural E>evelopment Bank ~ 1 I 1 1

38 Angkor Capltal Speclgdized Bani(, ·. 1 ·f 1 1

39• PHSME SJl'lcialiied Bank Ltd. -- 1, 1 ' 1 1_ I - ·-~

Sub-total t ? ' 7 7

Total - ~5 148 - 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 hopefully•the 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

• Foreign Branches 1 Including Head Office 2Jncudfng Branches In Vietnam 3 /nclu_ding Sevices Post

Graphics courtesy of the National Bank of Cambo«J.ia said. Ill

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WWW.PHNOMPENHPOST.COM THE PHNOM PENH POST• MAY31, 201 3 BANKING_I RNANCE

C:anadia B·ank CE,O· articulates strategy 9~'truly local''exp·ansio~ Q&A with Canadia Bank 1CEO 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 development.

Lor sat down with the Post's Moeun Nhean for an interview.

Our readers want to under­stand 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?

Canadia Bank is leveraging our strong pedigree and reliable history to transform and build a comprehensive financial services provider. , For over 20 years_ the bank has grown steadily and expects continued steady and sustainable growth for years to come. Equal importance is placed on growing revenue and profits as well a,s on strong liquidity and capital

· position. Canadia Bank recognis'es

that to remain the leading bank in Cambodia, it is imperative that the bank respond appropriately and decisively to new market conditions and realities. Much of this has entailed leveraging our strong brand and experienced management to embark on ambitions but realistic goals. We devote great attention and resources to ensure that we streamline operations and become more efficient in how we conduct business with and for our customers.

Today, Canadia Bank remains the safest bank in Cambodia. Local and global customers and banking partners are assured that Canadia Bank balances growth aspirations with a strong and stable balance sheet.

Despite significant growth ratios, we have maintained our loans to deposit ratio conservatively at 69 per cent and our regulatory liquidity ratio at 17 .3 per cent. Our total capital adequacy radio rem(!ins among the highest in the iQdustry at 21 per cent and our solid total shareholder's equity position of US $204 million, which .is comfortably above the minimum regulatory requirement, augurs well for the continued business expansion of Canadia Bank in the near futili'e. · • "

Canadia Bank is truly a local Cambodian BanR with its growth, culture and existence completely entwined with the Cambodian people and economy; simply put," we are here to stay''.

How many branch offices does Canadian Bank have nation­wide?

By the middle of this year our distribution network will comprise 48 branches and more than 80 ATMS located nationwide across Cambodia. Our aspiration is to be in every single province where our customers are located. Very shortly, we would also be announcing the 'launch of 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 US$880 million. Amidst very competitive environment, Canadia Bank grew loan its portfolio in a disciplined manner placing priority on 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 ~nadia Bank's recipe for success?

Canadia 'Bank is building a strong and resilient org~satjon; ~.tp. ,s~stain,able busmess frafiehiseS"and'a ,. ·'

long term view, and we are well positioned and·prepared 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 announcetheconsummatien 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 ASEAN.

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

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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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BANKING·& FINANCE THE PHNOM PENH POST• MAY31. 2013 WWW.PHNOMPENHPOST.COM

c:IM.B featur~s sp··ecial p:ref A

SEAN"-focused CIMBBankis 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 Malaysia-headquartered CIMB Bank, he was born in

Southeast Asian platform while preserving aspects whicfu. identify us to the local population," HengVuthy said.

"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 relati.o~hip 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 benefits."

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 . Web: www.wingmoney.com

said. 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

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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 countr·ies 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 ofStrat~gy and Finance Heng\Mhy.

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WWW.PHNOMPENHPOST.CXlM THE PHNOM PENH POST• MAY. 31, 201 3 BANKING I FINANCE

rred .cust.o·me.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 centres.

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 mass­affluent-to-be. And in the long term, we are looking at deploying investment banking."

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 2010.

"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 market."

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 technologies."

CIM1 B's Heng Vuthy answers questions . about prod·ucts, 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 Cam­bodia?

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 self­service terminal and continue gi;0wing.

When did CIMB first open in Cambodia?

CIMB Bank PLC 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?

USD, EUR, JPY, AUD, 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 multi­local b usiness 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 to 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 core­banking 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 regional1 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 ,place·for our customer services and business continuity plan acrosi;; our 11 retail branch networks.

scale of•our 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 growing.

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 OPEX.

• Personal term loan to finance personal needs including automobile and soon.

• 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 q 1pital 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 platform.

Do you have any new prod­ucts 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 service.

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

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CIMB is offeling special treatment for preferred customers.

able to get a bigger house with gradual incremental repayments_.

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 policies.

Growing acceptance ofbankingservicesand 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. This.is further facilitated by a very progressive and supp0rtive National Bank of Camb0dia. IDI

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BANKING &FINANCE 'THE PHNOM PENH POST• MAY31, 201 3 WWW.PHNOMPENHPOST.COM

FT'B,· an.d. Win.g partner to1 b1rJ

To·pping u·p a VISA card can be d.o ~ e 1by mobile· phone or internet

a HE n ew agreement between Wmg and Fm will.enable people all over C<URbodiato bl!lyprepru.. 'd · VISA·qrrds and get them tapped upielectronically throughWmg's

mobile payment system. The agreementrneans that it.is 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'iined·FTB, saw an opportunity ancl:,got ill touch with Perkins about a possible agreemeat that has inow·come to fruition.

According ito 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 existing·.customers.

"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

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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 h earty 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 intem ational 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, enabling·peeple to pay for goods.online like a PayPal."

Perkins said Wmg is wod<ing with multiple banks on becoming the clearing system for any card payment through a Point of Sale (POS) terminal;

"In.some cases banks might want to extend their POS network, so how about ban.k custemers being able•to useWmg outlets? ~he. POS·effectively becomes a mobile ATM that we can usefoF•the 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 h as 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 vouchers.

"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 ·micm~aopic 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 player~. _

"We were set .to look aft~r theiittle guy, but als(:) by doifig-ili.at 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 balan€e 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 the·security, and if you don't use it, you don't pay. It is safer tPaJ.11. keeping it ilnder the mattress."

'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 top·u p creclit·and is also·look,iJ:ilg into •the pos~ibility ·of 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 n ew prodwcts and adjust to the market quickly is crucial, to Wmg, We are effectively a technology compariy .and we·emi;>lo.y our own Cambodian t¢chndlogy team. We've got '!team of about 20 technology develqp.ers," · Ill

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WWW.PHNOMPENHPOST.COM THE PHNOM PENH POST• MAY31, 2013 BANKING I RNANCE

ngVISA cards, to the· mas:s,e·s FT·B issues first V,ISA cards in Asia that can be topped up via mobHe p,,~i)ne.

F OREIGN · 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 here. ·

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 Anvanith.

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 ancd~ 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 any ·amount. 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 targeted•to 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 August.

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," Fel~ing

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 dig.it 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 said.

"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 disGussed. . 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 Perkins. . "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 b~

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 transactions.

"Dur con¥ersations 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 calle·d 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

· indimduals. "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 equity."

Guy said Ff!B iposted a 1. 7 per cent return on assets and a 1:4 p~r cent return on equity, with 1.4 per cent of non-performing loans.

"We are one of the mm.st

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 pID.one with roaming, enabling ID.is wife to pay the hospita'l bill.

"You can do transfers while you~re on the move,'' Perkins said.

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

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HwangDBS b,ank bullish on Cambodia T

HEGeneral Manager of Hwang DBS Commercial Bank, Han Peng

Kwang, says the Malaysian­based bank's rapid growth since 2009 has made him eptimisticabouttheeconomy 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 employees.

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 said.

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 bankingandphonebanking 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 require­ments. 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'1k:Com.kh I ~~~ !!~!.~t s:r:~lan Publlc Bank branch 0 c;easnatreiiaG'H'M:

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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 to .open 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 neighbourhoods.

"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, incre·asing· etplace co.mp:etition· ·

Q and A with Sim Senacheert, President and CEO, PRASAC­Microfinance Institution When did Prasac start in the PRASAC Staff Comp~y 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 rural ~;

.. :r: development project i.rl Cambodia, fµnc;l.ed by,Th¢ European Union. 'Fh~ whole PRASAC project w&s phased!_' out in Decernbet.2P03, '· · except its credit eoinponent continues operC!,tiens Wlder the name PRASAC Ctedit · Associationc(PQ\). ·and ·was finally transformed in.to 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 . provin.ces;""With .~e different credit' comp,onents. • 2000-2003: Extension .· as PRAsACIT combhied to one project, one credit component. • 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 Operator. • 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 ~ves1m:erit paxticfp,ation

. "front~c0mro~icfal and social investors~ - -• 2007: PAA$AC completed its

' tr.ansformation with new five interiiatianal shareholders, $IO; DCG, FMO, LOLC, and Oikooredit. • 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 branches. • 2012: Launch ofA<FM service and become the first MFI ·offering ATM to clients in the country.

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

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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 2012.

Demand Deposits

Are you seeing more competi­tion 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

2.50%

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 Cambodia? 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 well. 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.

•·Acc·urate 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 loans? 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. Th e 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 percent.

How do you see Cambodia's future unfolding in the micro­finance 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 prov­inces? I think that we see people starting to improve their living standarel. To S'ome e'x:ten ·l ·'hitiJ< ,fh,, MFI ". · ·-~

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also contribute to this development. Are you now the largest Mi­crofinance institution in Cam­bodia? 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 success? 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 management • Strong institutional capacity ie, internal control, policies, procedures.

What are the long ferm pros-· pects for microfinance in . Cambodia? 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 web~ite may be viewed at www.prasac.com.

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MID-uhan Japan B'ank focuses o.n service Q and A with General Manager Onishi~ 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 Cam­bodia? 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 requirements. ·

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 ~equirements 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: cash­secured overdraft facility on request, Uil]nrited over-the-~ounter 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 professionals.

What would you like the public to know about MARUHAN Japan Bank?

' We have superior and unprecedented levels of service. We classify ourselves as ·experts in 're)ationship banking'. This means we focus on providing our customers with unparalleled standards of service, performance and global reach. We take ·the 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 service.

ASEAN Strategy- In the last 12 months we have launched our ASE.AN FINANCIAL BUSINESS NETWORK with MARUHAN 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, inter­connected ASEAN' region as the established leader in its financial sector.

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 expan­sion?

ASEAN Strategy-Through our ASEAN FINANCIAL BUSINESS 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 government. ·

Do you have an extensive loan port­folio 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 seek­ing 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 ground­breaking, highly sophisticated e~banking 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 b~ M

Maybank.was ranked number 13 in Bloomberg Markets 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 risk­weighted assets, non­performing 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 dec~des 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 su~port Singapore and Malaysia businessmen. In 2007, we changed our business model as we decided to adopt a long haul strategy to al§O serve the local community and started to e~and our network."

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 Cambodia,"

At the moment, the eight branches in Phnom Penh are complemented by four

Strength from our past

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outside, with one each in Siem Reap, Battambang, Kampong Cham and Sihanoukville.

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 examplera credit and risk management department.

Lee says there are si~s 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 acceunts.

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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3 I CANADIAN IMPERIAL BANK OF COMMERCE (CANADA) 14.9 13.8

• I ROYAL BANK OF CANADA (CANADA) 17.4 13.l - - --- -- -

5 j DBS GROUP HOLDINGS (SINGAP_ORE) 19.9 14.0 ·- -

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18 I INDUSl'RIAL & COMMERCIAL BANK OF CHINA (CHINA) 29.2 10.5

- I TURKIYE GARANTI BANKASI (TURKEY) 29.2 15.5 -~ -

20 j BANK OF COMMUNICAl'IONS (CHINA) 29.4 11 .2

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

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talents. The market probably at that time did not know us well and felt we were not . expanffing our operations aggressively."

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 country.

"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 customers.

"!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

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BANKING I FINANCE THE PHNOM PENH POS'F • MAY 31, 2013 WWW.PHNOMPENHPOST.COM

Success facto:rs fo,r C'ampu b1ank reflected in its leadership style DJ NE of the reasens

CambodiaR Public Bmk has

· been successful is the strong

corporate' governance and policies advo·cated 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 rewarding."

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 CampuBank.

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 advancemen.t."

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 driven.

"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 before­tax 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 labour­intensive base economy in · the long term."

Phan said the development of a technology-driven manufacturing base is complimented by ·the 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.

willcontinuetoenhanceour 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 instalments.

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 cards.

" 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 restaurant."

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. C~pu 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-Through­Processing 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 point·to 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, what we can do for you and your business. including increasing interest 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 Servie~s • Foreign Exch_ange

"We are seeing more developments in the Sp-ecial Economic Zones especially in· Phnom Penh, Preach Sihano~, Koh Kong and •Bave1, infrastructure cl:evel'opinents in the . ·· constrw::tion, d'thy(l.ro"power dams and stations and bridges, i;eeonstruction ef Failways and .r.eha.bilitation

.. ..of, the roaiis linkiilg the key

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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 <1.ctivities~ 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 National•Bank 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 · 2011.

"The capital market has provided opportunities for business enterprises to raise capital for their business expansion in Cambodia. Campu Securities is principally•involved 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 ... economy.to 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

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