How Digital Monetary Providers Break Down Limitations and Empower Younger Ladies 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 larger monetary inclusion, Ladies’s World Banking is working with AMK Microfinance Establishment – one of many main microfinance establishments within the nation – to design, take a look at and ship options for this demographic.

That is the primary of a two-part weblog summarizing Ladies’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 Govt Officer and a vocal proponent of serving low-income Cambodians, drew consideration to 2 info: AMK’s most intensive buyer base is over 40 years in age and this phase has working-age youngsters.

Subsequent, he posed the query, “To serve the low-income younger grownup phase 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 may occasionally fluctuate from nation to nation. AMK seeks to introduce its digital monetary providers to younger adults aged 15 to 35, representing about 65% of the Cambodian inhabitants, with publicity to know-how and smartphones. Understanding and reaching this inhabitants is essential to how AMK can efficiently strategize its digital monetary providers providing to this group.

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

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

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Want for Extra Literacy and Accessible, Reliable Digital Monetary Providers

All the ladies we interviewed personal and use smartphones day by 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 ladies in low-middle-income nations, together with Cambodia, are much less possible than males to make use of cell web and cell cash as a consequence of low literacy. Amongst these girls, data and use of digital monetary providers and merchandise – together with the place to join an account – stay low. Our evaluation means that these prospects want to achieve extra consciousness and understanding of the options and advantages of utilizing digital monetary providers and the place to start and join an account.

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

There are nonetheless reservations as a consequence of fears and misconceptions of digital scams, particularly amongst much less tech-savvy prospects, and fears of shedding their accounts and cash if their telephones are misplaced or stolen. These issues come up primarily as a consequence of restricted expertise and use of digital monetary providers and low digital literacy ranges. Nevertheless, with correct digital monetary functionality technique and coaching, these girls prospects can be keen to make use of digital monetary services.

Financial savings Is Crucial

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 develop her enterprise, demonstrating how prospects use totally different financial savings strategies.

Our Resolution: Utilizing Financial savings As An Entry Level

Leveraging insights from the client analysis, we labored with AMK to develop an answer and technique to succeed in younger grownup girls and to introduce and place AMK as a lifelong monetary service supplier they’ll 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 prospects’ belief in utilizing digital monetary providers and encourage them to transact digitally utilizing AMK’s cell banking utility.

There are three ideas and methods to realize them:

  1. Elevating prospects’ digital monetary capabilities
    Technique: Consciousness Marketing campaign
    On-line and in-person campaigns are essential to educating prospects about monetary administration and digital monetary providers. This may also be a possibility to introduce AMK merchandise and values to instill belief. 
  2. Accessible service touchpoints
    Technique: Account Signal-Ups and Be taught-by-Doing Visible Tutorials
    Assist and repair accessibility is paramount when girls determine on a monetary providers supplier. Subsequently, ongoing buyer help is important, ranging from the account sign-up. As well as, video tutorials must be accessible by way of AMK cell banking apps and YouTube to information prospects on digital actions reminiscent of cellphone top-ups, transfers, the opening of financial savings accounts, and different monetary transactions. In the long term, additionally it is important for the supplier to construct extra channels/touchpoints and interoperability with totally different platforms to ease buyer transactions.
  3. Price-effectiveness and extra transactions
    Technique: Incentivize and Promote Transactions
    Clients are attracted by services that convey further advantages. Such worth must be communicated clearly and recurrently by way of real-life instances. Offering incentives to drive transactions by way of AMK’s cell banking utility is integral to our answer.

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


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