The National Bank of Cambodia (NBC) will continue to promote the development of the Fourth Industrial Revolution in the Kingdom’s financial sector, according to its Macro-economic and Banking Sector Development in 2018 and Outlook for 2019 report released last week.
The report said the continuing development of human resources and technology is important for maintaining the efficiency of financial sector development as well as the economy as a whole.
“The Industrial Revolution 4.0 has created new technologies, which have evolved rapidly in recent years,” the report says. “Achieving the strategy [goals] requires all financial institutions to adapt to Industry 4.0,” it added.
The Fourth Industrial Revolution, also known as Industry 4.0, refers to the automation and technological advances changing how we live.
The NBC report stipulated that the central bank will continue to build confidence and develop the efficiency, strength and competition of the banking system in line with the 2016-2020 Financial Sector Development Strategy.
Acleda Bank Plc president and group managing director In Channy said adapting to Industry 4.0 is essential to the banking sector in order to actively provide customers with convenience and security.
“Industry 4.0 has a lot of benefits for the banking sector because when it comes to cash flow, customers do not have to go directly to the bank – they can use technological systems to order financial operations,” he said.
He explained that Industry 4.0 has made operations more automated and offers a lot of benefits to consumers and society as a whole.
“Industry 4.0 is also contributing to the reduction of vehicle emissions and is especially helping the government manage cash flow and reduce the printing of bank notes,” said Channy.
Industry 4.0 has been incorporated by Acleda Bank management into its strategic plan since 2014 and was officially launched in 2016, called Acleda ToanChet, Channy added.
Pheng Raksa, CEO of Cashwagon (Cambodia) Co Ltd, said such technology has been a major contributor to the global financial sector as it helps reduce production costs and boost speed and security.
“Economic growth and technological advancement has prompted every institution to find new products that can facilitate company processing speeds and reduce costs for success,” he said.
However, the NBC cautioned that while some financial technology instruments have reduced service fees and risks, as well as boosted financial inclusion, they also pose their own risks. Crypto assets causing a rapid fluctuation in prices, without a guarantee of institutional cash exchanges, was cited as one such risk.