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Cambodia - April 2013

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Sanjoy Sen
Sanjoy Sen

- ANZ Royal Bank is a major player in Cambodia's growing retail banking sector as a joint venture between ANZ and Cambodia's Royal Group of Companies. - Compared to other ASEAN countries, Cambodia has a much lower consumer spending level and still lags significantly behind markets like Indonesia. However, its economy is growing steadily. - While credit card usage is still low due to a preference for cash transactions, ANZ is working to educate customers about alternative payment methods and build trust in the banking system. - Retail banking in Cambodia faces fewer competitors than in more developed markets, allowing ANZ to achieve stronger customer loyalty, but expectations are also growing as the economy and sector develops.

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TIIE PHNOM PliNl I t'OS'l' tt ' Nti 7.20l3 AI{ZofficialonCarrrbodidsbanks CEOTatk In Cambodin,personalbanking ser- vicesare expanding and customers are increasinglyexpectingmore out of the institution that handles their money.Oneof the keyplayersin the counny is ANZ RoyalBank, a joint uenturebetweenAustralia and New ZeglnndBanking GroupLimited and Cambodin'sRoyal Group of Com- panies.Anne Renzenbrinksat down witk ANZ's managing director for retail banking in the Asia Pacific, SanjoySen,to get a fuller picture of retailbanking. Where woutd you say Gmbodia stands comparedto other ASEAN countries? Ifyou lookatourANZretailbusiness in theAsiaPacific,we canclusterthe countries into some markets which areveryevolvedanddeveloped,such asSingapore,ThiwanandHongKong. Iwouldput Cambodiaasaverystrong emergingmarket.It isastrongareaof focusfor us.Fronraretailperspective, I think that eonstnner spending in Cambodiais signfficantlylower and lags behind other $SEAN markets. Spendingon groceries,jewelry,travel, tourism,vehiclepurcbases,it's grolrr- ing but it's still behind marketslike SanjoySen,ManagingDirectorfor RetaitBankingAsiaPacificfor ANZ,at theANZ officeattheOceanFinanciatCentrein Singapore.pHorosuppLrED ers intoptasticratherthankeeping cashunderthepittow? This isvery much a casheconomy. Asin many of the emergingmarkets, people iire very wary about using creditcards.Ourroleaspioneersibto educatecustomersand increasethe usageof cards,e:cplainto customers that cardsare actually a convenient wayof paying,ratherthanusingcash. Becausewhether it's cards,whether it's opening an account,whether it's giving loans,whether its mortgages, youhaveto build trust. Howwoutdyou comparethe chat- tengesof the moredevelopedmar- ketswathCambodia's? Let's take, specifically,challenges between Indonesia and Cambodia becausewe have a largeretail busi- nessin Indonesia.The revenuepool in Indonesiais much biggerbecause allproduct linesarethere,thereisin- vestrnent,thereisinsurance,thereisa stockmarket,mutualfunds.Thechal- lengeis,becausethe revenuepool is bigger,thereis that much more stiff competition. In a market like Cam- bodia,wehavealeadershipposition. And when you educatethe custom- ers in that process,customerloyalty is easierachievedthan in placeslike Indonesiabecausetherearesomany choicesthereand the custornersare sosawythat theykeep switching.To get customer satisfaction is tough- er; to get loyalty from customersis tougher.Anotherchallengeisthatthe customet's expectation benchmark is much higher.Youcannot in anyof thoseother marketsexpectthe cus- tomer to wait for 45minutes to with- drawmoney.Here,youcan. Whatdo youexpectwitt happento the retait bankingsector and the bankingsectorin generatin Cam- bodia? Bankingpenetrationhas to go up. More and more people will open bankaccounts,companieswill refuse to paybycash.Aswagesincleaseand salariesincreaseit will be important for peopleto havebank accounts.At the samespeedasbanking penetra- tion goesup, I think tliere will be a leapfrogefrectwith the intemet and mobile revolutions, and that's what I've seen in emerging markets. Re- causethere are customersthat have lal mobilebut'they dort'thaveabank account.tr thepastit wasaverystep by stepprocess.Thecustomerwould first go to the branch, then get edu- catedabout intemet or how to usea mobile.I think in amarketlike Cam- bodia,retail bankswith stronginter- net andmobile strategies.willbesuc- cessfrrl.That'spartofour strategytoo. This interviow lns been editd, for lzngthandclnrity. I Ipdonesiaby significantproportions, not just 10percentbehind,but mul- tiplesbehind. What about the tevel of progress in the sestor?Wherecanimprove- mentsbemade? TherehasbeenrobustGDPgrowth, a young population, people are get- tingmore educatedandemployment levels are higfr. Where there is less progressis investnent in infrastuc- ture, which is really something that spursthe growthof theeconomy.The percentageofpeoplethatarebanked in Cambodia is signiflcantly lower andlaggingbehind many othermar- kets.Cambodiastillhastomakeprog- resswhenit comesto equitymarkets, stockexchange,wealthmanagement products and insurance.These are very basic products.We are geiting there,but still stepsbehind. HowwiLl,ANZtry to steerits custom-

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Cambodia - April 2013

  • 1. TIIE PHNOM PliNl I t'OS'l' tt ' Nti 7.20l3 AI{ZofficialonCarrrbodidsbanks CEOTatk In Cambodin,personalbanking ser- vicesare expanding and customers are increasinglyexpectingmore out of the institution that handles their money.Oneof the keyplayersin the counny is ANZ RoyalBank, a joint uenturebetweenAustralia and New ZeglnndBanking GroupLimited and Cambodin'sRoyal Group of Com- panies.Anne Renzenbrinksat down witk ANZ's managing director for retail banking in the Asia Pacific, SanjoySen,to get a fuller picture of retailbanking. Where woutd you say Gmbodia stands comparedto other ASEAN countries? Ifyou lookatourANZretailbusiness in theAsiaPacific,we canclusterthe countries into some markets which areveryevolvedanddeveloped,such asSingapore,ThiwanandHongKong. Iwouldput Cambodiaasaverystrong emergingmarket.It isastrongareaof focusfor us.Fronraretailperspective, I think that eonstnner spending in Cambodiais signfficantlylower and lags behind other $SEAN markets. Spendingon groceries,jewelry,travel, tourism,vehiclepurcbases,it's grolrr- ing but it's still behind marketslike SanjoySen,ManagingDirectorfor RetaitBankingAsiaPacificfor ANZ,at theANZ officeattheOceanFinanciatCentrein Singapore.pHorosuppLrED ers intoptasticratherthankeeping cashunderthepittow? This isvery much a casheconomy. Asin many of the emergingmarkets, people iire very wary about using creditcards.Ourroleaspioneersibto educatecustomersand increasethe usageof cards,e:cplainto customers that cardsare actually a convenient wayof paying,ratherthanusingcash. Becausewhether it's cards,whether it's opening an account,whether it's giving loans,whether its mortgages, youhaveto build trust. Howwoutdyou comparethe chat- tengesof the moredevelopedmar- ketswathCambodia's? Let's take, specifically,challenges between Indonesia and Cambodia becausewe have a largeretail busi- nessin Indonesia.The revenuepool in Indonesiais much biggerbecause allproduct linesarethere,thereisin- vestrnent,thereisinsurance,thereisa stockmarket,mutualfunds.Thechal- lengeis,becausethe revenuepool is bigger,thereis that much more stiff competition. In a market like Cam- bodia,wehavealeadershipposition. And when you educatethe custom- ers in that process,customerloyalty is easierachievedthan in placeslike Indonesiabecausetherearesomany choicesthereand the custornersare sosawythat theykeep switching.To get customer satisfaction is tough- er; to get loyalty from customersis tougher.Anotherchallengeisthatthe customet's expectation benchmark is much higher.Youcannot in anyof thoseother marketsexpectthe cus- tomer to wait for 45minutes to with- drawmoney.Here,youcan. Whatdo youexpectwitt happento the retait bankingsector and the bankingsectorin generatin Cam- bodia? Bankingpenetrationhas to go up. More and more people will open bankaccounts,companieswill refuse to paybycash.Aswagesincleaseand salariesincreaseit will be important for peopleto havebank accounts.At the samespeedasbanking penetra- tion goesup, I think tliere will be a leapfrogefrectwith the intemet and mobile revolutions, and that's what I've seen in emerging markets. Re- causethere are customersthat have lal mobilebut'they dort'thaveabank account.tr thepastit wasaverystep by stepprocess.Thecustomerwould first go to the branch, then get edu- catedabout intemet or how to usea mobile.I think in amarketlike Cam- bodia,retail bankswith stronginter- net andmobile strategies.willbesuc- cessfrrl.That'spartofour strategytoo. This interviow lns been editd, for lzngthandclnrity. I Ipdonesiaby significantproportions, not just 10percentbehind,but mul- tiplesbehind. What about the tevel of progress in the sestor?Wherecanimprove- mentsbemade? TherehasbeenrobustGDPgrowth, a young population, people are get- tingmore educatedandemployment levels are higfr. Where there is less progressis investnent in infrastuc- ture, which is really something that spursthe growthof theeconomy.The percentageofpeoplethatarebanked in Cambodia is signiflcantly lower andlaggingbehind many othermar- kets.Cambodiastillhastomakeprog- resswhenit comesto equitymarkets, stockexchange,wealthmanagement products and insurance.These are very basic products.We are geiting there,but still stepsbehind. HowwiLl,ANZtry to steerits custom-