Powering inclusive growth with digital finance

Summary

Digital finance is reshaping financial inclusion and economic growth in Cambodia, offering new pathways for underserved populations and businesses to access essential financial services. This report examines how digital transformation in banking, particularly through mobile financial services and agent networks, has expanded the reach of payments, loans, and savings products to individuals and micro, small, and medium enterprises (MSMEs) previously excluded from the formal financial system. It explores the evolution of digital payment platforms, the challenges of early adoption—including language barriers, limited smartphone penetration, and identification hurdles—and the innovative business models that overcame these obstacles. The report details the role of digital platforms in supporting payroll, microloan disbursement, and supply chain digitization for SMEs and corporates. It highlights the impact of gender-inclusive finance, with a focus on women entrepreneurs and the partnerships that facilitate their access to working capital and digital tools. The emergence of blockchain-based solutions, such as interoperable payment platforms, and the integration of artificial intelligence and machine learning in loan decisioning are also covered. Key questions addressed include: What are the main barriers to financial inclusion in developing economies? How have digital finance solutions adapted to local needs? What strategies have proven effective in empowering women-owned businesses? How are new technologies like blockchain and AI shaping the future of banking in Cambodia? The report provides a comprehensive overview for financial institutions, policymakers, and technology providers seeking to understand and support inclusive digital growth.