Cambodia Post (CP) signed an agreement with Canadia Bank last week to provide loan and deposit services called Cambodia Post Bank (CPB), targeting those in rural areas, particularly farmers.

Under the initiative, customers can walk into any CP branch to withdraw or deposit money from Canadia bank. While these customers must have Canadia bank accounts, they can easily open one at the CP branch, said CP’s director-general, Ork Bora.

The memorandum of understanding is awaiting final approval from the Ministry of Post and Telecommunication and the Ministry of Economy and Finance, he said.

“We are just waiting for the last approval from the [ministries], but they have already approved in principle,” he said. “It may be get finalised after Khmer New Year.”

CP’s nationwide reach makes the new service accessible, Bora said. “[Canadia Bank] is co-operating with us because they see that we have enough facilities, infrastructure and coverage in the whole country, with more than 50 offices in all provinces and cities.

“So, they just put the money with us so that we can provide loans and receive deposits from the customers, much like how a bank operates,” he said.

Cambodia Post will have a five per cent stake on profits, while Canadia will take 95 per cent, he added.

Acleda Bank’s president and CEO, In Channy, said such services are also being conducted in countries around the world. “It will give more option for customers to access finance,” he said.