Page 164 - Special Topic Session (STS) - Volume 1

STS422 Robin G. et al.
which has helped increase financial inclusion. A more standardized
identification database can further support the protection of customers and
help to increase the monitoring of over indebtedness and cross lending for
the FSPs and credit bureaux.

Explore regulatory technologies (RegTech): Technology can also help to
monitor the increased number of transactions and necessary KYC regulatory
compliance, while strictly complying with applicable data protection laws and
regulations (e.g. General Data Protection Regulation in the European Union).
Examples include IdentityMind global, Onfido, Ancoa, and AQMetrics which
conduct Know Your Customer (KYC) and Anti Money Laundering (AML) fraud
prevention checks. Another interesting example in the field of customer rights
and consent to use data includes Trunomi, which provides customer data
rights management technology to private sector companies that enables
businesses to request, receive and capture customer consent to use their
personal data. All this enables financial service providers to comply with
regulations by putting in place auditable workflows to record and prove the
lawfulness of processing of customer data.

Facilitate partnerships between banks and non-bank institutions:
Mobilize small savings, especially among women and people in rural areas.
Implement policies that allow mobile wallet providers to link their mobile
money accounts with the savings accounts at Banks and MDIs. Allow interest
bearing on savings wallets for the Cambodian FSPs to help to incentivize the
promotion and usage of digital wallets. Allow MDIs to do interbank transfers
with other FSPs to make savings products more convenient for account
holders.

Examine the after-effects of the interest rate cap on financial inclusion:
To offset the risks of an interest rate cap, FSPs are likely to offer higher loan
sizes, lengthen the loan period, and charge higher upfront fees. This may then
widen the gender gap in loan mobilization because rural and female
customers often need lower loan amounts. The repercussions of an interest
rate cap are relevant in the context of a national financial inclusion strategy
which focuses on the financial inclusion of women and un- and underserved
(rural) populations.

Incorporate financial service usage and customer-value insights into
monitoring indicators for the National Financial Inclusion Strategy: In this
regard, segmented customer data by sex and age can be used for design,
implementation, and evaluation of policies aimed at improving financial
inclusion and financial services usage in Cambodia.

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