Techo
Startup Centre (TSC), under the Ministry of Economy and Finance and the
association of banks in Cambodia, yesterday signed a memorandum of
understanding (MoU) on cooperation to promote financial technology systems in
Cambodia.
The
MoU aims to promote financial inclusion and expand the scope of work in
startups and financial technology (FinTech) sectors in support of Cambodia’s
digital economy. The apparent unending of advances in digital technology and
telecommunications have made digitalisation and integration in the form of
digital chains take place in all sectors, including finance.
The
potential of this new technology will become an important lever in the
socio-economic development of the digital economy.
Undersecretary
of State of the Ministry of Economy and Finance, and Chairman of Techo Startup
Centre (TSC) Kong Marry said that Cambodia’s vision is to become a middle-income
country by 2030 and high-income country by 2050 through diversification of the
economy.
He
said that in Cambodia FinTech has grown remarkably in the last five years
because there are more bank accounts and e-wallets that connect with mobile
applications for transactions, payrolls and online transactions. However,
Cambodia has also faced challenges in the FinTech sector, including a lack of
regulation and framework, lack of coordination between institutions, lack of
data to evaluate risk and lack of human resources.
“The
signing ceremony between TSC and ABC became a new milestone to support FinTech
as well as training in the startup sector,” Marry added.
The
development of FinTech plays an important role in building the digital economy
as a whole and, in particular, promoting financial inclusion. The digital
economy policy draft addresses the need to set up a national payment system, a
part of financial technology, to drive the development of e-commerce, last-mile
delivery and other online services.
ABC
Chairman In Channy said that FinTech will play a key role to speed up and
contribute to the development of the country, which has a lack of technology
infrastructure. He said that FinTech will provide benefits to the Kingdom
by absorbing the use of the latest technology without barriers.
The
MoU enables ABC to work with TSC to participate in the Fourth Industrial
Revolution (4IR) in Cambodia’s digital economy plan through supporting,
strengthening and expanding new startups.
“It
also creates an obligation for the law to be updated and the creation of
regulations to protect public safety and socio-wellbeing. The ABC will work
with TSC to support strategy, technical know-how and financing and it vows to
support the mission and programmes of both parties directly and indirectly,”
Channy said.
According
to Marry, TSC has recently transformed itself into a public administration
institution with the fundamental duty to support startups and promote their
development in an effort to increase the chances of them becoming successful
businesses.
With
the support of ABC and its members in the area of technical and business
consultation, this cooperation will enable TSC to develop more support
programmes for startups in the financial technology sector, he added. In response
to the policies and efforts of the government, TSC said it will continue to
strengthen and expand collaboration with both national and international
institutions.
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