The National Bank of Cambodia (NBC) and the People’s Bank of China have signed a memorandum of understanding (MoU) to foster innovation in banking and payment systems, enhancing the security and efficiency of cross-border payment transactions between the two countries.

The MoU, signed on November 21 in Beijing, comprises two key areas of cooperation: financial innovation and payment mechanisms, and the establishment of payment and clearing coordination in Cambodia.

A press release from the NBC outlined that the accord aims not only to promote innovation but also to strengthen the banking sector’s capacity to support increasing trade, investment and bilateral financial flows with China.

Chea Serey, governor of NBC, highlighted the significant benefits of financial technology (fintech) to the country’s banking network in a mid-November interview with Singapore-based CNBC.

They include the development of a fast, easy and cost-effective digital payment mechanism. She noted that fintech has transformed money transfer and payment services both domestically and internationally.

She also mentioned the establishment of the inter-bank mobile payment platform, known as the “Bakong System”. The framework enables instant payments through financial institutions by scanning QR codes.

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Author: Van Socheata

Publication date: 24 November 2023

Source: The Phnom Penh Post