Banking - Cambodia

Cambodia

In Cambodia, the Banking market is expected to witness a significant growth in Net Interest Income, reaching a projected value of US$2,980.00m in 2024.
Traditional Banks hold the dominant position in the market, with a projected market volume of US$2,979.00m in the same year.
Looking ahead, Net Interest Income is anticipated to display a steady annual growth rate (CAGR 2024-2029) of 4.86%, resulting in a market volume of US$3,778.00m by 2029.
When considering the global scenario, China is expected to generate the highest Net Interest Income, with a projected value of US$4,332.0bn in 2024.
Cambodia's banking sector is experiencing rapid growth, with an increasing number of foreign banks expanding their presence in the country.

Key regions: United States, China, Japan, Brazil, United Kingdom

Definition:

The Banking market refers to the financial services sector providing financial products and services to individuals and businesses. Retail banking focuses on offering financial services to individual consumers, such as personal loans, savings and checking accounts, credit cards, and mortgages. Commercial banking, on the other hand, provides financial services to small and large businesses, including loans, lines of credit, and other financial products designed specifically for businesses.

Structure:

The market consists of two segments:
- The Traditional Banking market refers to the financial services sector that provides a range of financial products and services to individuals and businesses through store-based branches and other traditional channels.
- The Digital Banking market refers to the emerging market for digital-only banks that offer financial services through online and mobile platforms.

The market data comprises Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:

The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the Retail & Commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.
Key players in this market are companies such as the Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the flourishing economy of Cambodia, the Banking market is experiencing significant growth and evolution.

Customer preferences: Cambodian customers are increasingly leaning towards digital banking solutions, driven by the convenience and accessibility they offer. Mobile banking apps and online banking services are becoming more popular among the tech-savvy population, leading to a shift away from traditional brick-and-mortar branches. Moreover, customers are showing a growing interest in personalized financial products and services tailored to their specific needs and preferences.

Trends in the market: One prominent trend in the Cambodian Banking market is the rising competition among both domestic and international banks. This competition is driving innovation and pushing banks to enhance their service offerings to attract and retain customers. Additionally, there is a growing focus on financial inclusion, with banks expanding their reach to underserved areas and populations. The introduction of new fintech companies and digital payment solutions is also reshaping the market landscape.

Local special circumstances: Cambodia's Banking market is uniquely influenced by the country's efforts to modernize its financial infrastructure and regulations. The government's initiatives to promote financial literacy and inclusion are creating opportunities for both banks and customers. Moreover, the young demographic in Cambodia, with a large percentage of the population under 30 years old, is driving demand for more advanced and tech-driven banking services.

Underlying macroeconomic factors: The steady economic growth in Cambodia, supported by sectors such as tourism, manufacturing, and agriculture, is fueling the expansion of the Banking market. As more Cambodians enter the middle class, there is an increased demand for banking products and services to manage their growing wealth. Additionally, the government's commitment to improving the business environment and regulatory framework is attracting more foreign investments into the banking sector, further stimulating its development.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.