In Cambodia, a growing number of people as well as business owners, are moving from traditional payments to mobile payments and on to flexible payment. Cambodians are adapting to the QR scanning method during Covid-19 as Fintech has become a demand in recent years.
“The majority of pre-modern people spent cash, long-term turnover, fees and traditional savings. In the digital era, the business owner who adopts Fintech will be the winner," said Tith Kamrang, founder of Rithipul, which promotes financial literacy.
The financial literacy specialist said that despite the complexity of Fintech, it is possible to develop a more modern and secure platform. Fintech makes financial transactions easier for individuals and organizations by increasing their convenience and often reducing their costs.
“It made businesses and services that enable highly secure internal network operations using big data, artificial intelligence (AI), and blockchain technology. Fintech aims to simplify the transaction process by eliminating some processes that are not important for all parties.” Kamrang explained at BarCamp DigiTech in Battambang in his presentation.
For example, users can send money to other people at any time of the day using a smartphone app, such as mobile banking, and have it sent instantly to their chosen bank account, he added.
“In response to developments in the broader technology sector, Fintech has transformed over the years. In the upcoming years, the Royal Government will transform into a digital government, thus our workers and citizens must be ready for the newest technological advancements.”
Digital banking in Cambodia has been growing, becoming more accessible than ever before. Through banks that first embraced digital technology, it is now easier for many of their current customers to manage their finances, apply for and repay loans and buy insurance.
Kamrang said that the rapid expansion of this sector has also been strongly encouraged by the Cambodian government and the National Bank of Cambodia (NBC).
“Future decentralized transactions through blockchain technology are implemented without the involvement of government agencies or other third parties. Blockchain applications and technologies are rapidly expanding, and this technology is expected to continue as more sectors adopt high-tech data encryption,” Kamrang said.
AI and Machine Learning (ML) technologies have changed the way Fintech businesses expand and the services they provide to customers. Reducing operation costs, increasing customer value and detecting fraud are possible with AI and ML.
These technologies play a key role in Fintech development as they become more accessible and affordable, especially as more traditional banks switch to digital banking.
“Technology complements other technologies and makes it possible for people to work together more closely. We should not get confused that technology will replace human labor,” Kamrang said.
Financial technology or Fintech is a term used to describe the application of modern technology in the provision of financial services. Technologies aimed at enhancing public access to financial services include the use of smartphones for mobile banking, investing, borrowing, and cryptocurrencies.
Fintech firms are made up of both new and established financial institutions and technology firms that aim to compete with or improve upon the use of the financial services offered by traditional financial firms.
A Fintech company is any business that modifies, improves, or automates financial services for consumers or businesses that service for peer-to-peer payments, such as Bakong and mobile banking, including KHQR.
An individual's ability to successfully handle assets, loans, bills, and savings depends on their level of financial literacy. Most people are at high risk without a financial foundation since many people invest without a basis in finance, and merely want to establish a business without having the necessary financial abilities.
Investors can invest in firms that are expected to expand over the year. As businesses become more competitive, vendors must understand that fintech is becoming increasingly vital.
Since ancient times, trade has been the exchange of products and services from one person or entity to another, frequently exchanging things without the use of money. After that new era of modernity, commerce is negotiated through means of exchange like money or coin, which substantially facilitates and simplifies trade.
Fintech may have emerged as a new technology in the 1950s, where money no longer needed real currency in their daily lives, so the first credit card creations appeared called Fintech first generation. The first Fintech accessible to the general public led to the development of Fintech, which led to the integration of bank mainframes and online stock trading platforms.
Fintech's second phase was launched in 1998, the first to run fully online, such as PayPal. In this evolution, innovation has been further transformed by mobile technology, social media, and data encryption. All users are now able to regularly access payment options hosted by social media, blockchain, and mobile payments apps as a result of the fintech revolution.
All in all, credit cards in the 1950s Fintech revolution operated in the 1960s and 1970s with the introduction of ATMs and the rise of electronic stock trading. Moreover, personal computers entered the banking industry in the 1980s, and internal e-commerce appeared in the 1990s. New technologies, such as mobile wallets, blockchain, and online financing, are all part of its constant and expansive evolution.