Home Women Financial How Digital Monetary Companies Break Down Boundaries and Empower Younger Girls in Cambodia

How Digital Monetary Companies Break Down Boundaries and Empower Younger Girls in Cambodia

How Digital Monetary Companies Break Down Boundaries and Empower Younger Girls in Cambodia


By Ker Thao, Maria Serenade, and Elwyn Panggabean

In Cambodia, three million out of 10 million younger adults stay financially underserved, hindering their capacity to plan and make investments for his or her futures.

As a part of its drive for better monetary inclusion, Girls’s World Banking is working with AMK Microfinance Establishment – one of many main microfinance establishments within the nation – to design, check and ship options for this demographic.

That is the primary of a two-part weblog summarizing Girls’s World Banking’s advisory work with AMK.

Cambodian Younger Adults: Low Monetary and Digital Literacy Ranges however Wanting to Save

Only a 12 months in the past, Kea Borann, AMK’s Chief Government Officer and a vocal proponent of serving low-income Cambodians, drew consideration to 2 info: AMK’s most in depth buyer base is over 40 years in age and this section has working-age youngsters.

Subsequent, he posed the query, “To serve the low-income younger grownup section of 15- to 35-year-old Cambodians, what do we have to do to grasp them higher?”

The United Nations identifies youth as a inhabitants between the age of 15 and 24, though it additionally acknowledges that this will likely range from nation to nation. AMK seeks to introduce its digital monetary companies to younger adults aged 15 to 35, representing about 65% of the Cambodian inhabitants, with publicity to expertise and smartphones. Understanding and reaching this inhabitants is essential to how AMK can efficiently strategize its digital monetary companies providing to this group.

In Might 2022, Girls’s World Banking carried out buyer analysis by interviewing 45 low-income younger ladies, together with college students and ladies who work in factories, tourism, and casual sectors, usually at their properties after work. Their places included rural, provincial (exterior metropolis facilities), and concrete areas.

Our analysis revealed three distinctive personas amongst low-income younger grownup ladies in Cambodia. These ladies share some similarities concerning smartphone possession and consciousness of monetary companies. Nonetheless, there are distinctive variations throughout the three segments of their preferences, capacities, and behaviors in direction of digital monetary companies.

cambodia YA graphic

Want for Extra Literacy and Accessible, Reliable Digital Monetary Companies

All the ladies we interviewed personal and use smartphones every day for communication, leisure, and enterprise, however solely a small quantity are conscious of cell banking. This actuality displays survey findings from The Cell Gender Hole Report by the GSMA in 2023. The report discovered that girls in low-middle-income nations, together with Cambodia, are much less probably than males to make use of cell web and cell cash resulting from low literacy. Amongst these ladies, information and use of digital monetary companies and merchandise – together with the place to enroll in an account – stay low. Our evaluation means that these clients want to realize extra consciousness and understanding of the options and advantages of utilizing digital monetary companies and the place to start and join an account.

Most interviewees emphasised the significance of trusted, secure, and accessible locations to economize. They see the advantages of digital companies as comfort, time effectivity and ease of transaction monitoring.

There are nonetheless reservations resulting from fears and misconceptions of digital scams, particularly amongst much less tech-savvy clients, and fears of dropping their accounts and cash if their telephones are misplaced or stolen. These issues come up primarily resulting from restricted expertise and use of digital monetary companies and low digital literacy ranges. Nonetheless, with correct digital monetary functionality technique and coaching, these ladies clients could be keen to make use of digital monetary services and products.

Financial savings Is Vital

Though saving is a problem, the ladies nonetheless put apart small quantities for college charges, month-to-month bills, and a future enterprise, amongst others.

For instance, an entrepreneur from Pursat Province sells maternal and child provides, incomes $200 month-to-month. She makes use of a piggy financial institution and an AMK account to construct funding to broaden her enterprise, demonstrating how clients use completely different financial savings strategies.

Our Resolution: Utilizing Financial savings As An Entry Level

Leveraging insights from the shopper analysis, we labored with AMK to develop an answer and technique to succeed in younger grownup ladies and to introduce and place AMK as a lifelong monetary service supplier they will belief for his or her monetary wants, ranging from their college. The first technique of the answer leverages short-term financial savings into the AMK cell account to assist construct clients’ belief in utilizing digital monetary companies and encourage them to transact digitally utilizing AMK’s cell banking software.

There are three rules and methods to realize them:

  1. Elevating clients’ digital monetary capabilities
    Technique: Consciousness Marketing campaign
    On-line and in-person campaigns are essential to educating clients about monetary administration and digital monetary companies. This can be a chance to introduce AMK merchandise and values to instill belief. 
  2. Accessible service touchpoints
    Technique: Account Signal-Ups and Be taught-by-Doing Visible Tutorials
    Help and repair accessibility is paramount when ladies determine on a monetary companies supplier. Due to this fact, ongoing buyer help is significant, ranging from the account sign-up. As well as, video tutorials must be obtainable by AMK cell banking apps and YouTube to information clients on digital actions equivalent to cellphone top-ups, transfers, the opening of financial savings accounts, and different monetary transactions. In the long term, it is usually important for the supplier to construct extra channels/touchpoints and interoperability with completely different platforms to ease buyer transactions.
  3. Price-effectiveness and extra transactions
    Technique: Incentivize and Promote Transactions
    Clients are attracted by services and products that convey extra advantages. Such worth must be communicated clearly and frequently by real-life instances. Offering incentives to drive transactions by way of AMK’s cell banking software is integral to our resolution.

Subsequent Steps: Measuring Our Influence
Within the subsequent a part of the weblog, we are going to share outcomes and studying from the pilot implementation.



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