Banks and non-banks: compete or collaborate? What we can learn from Wing and FTB in Cambodia


In the world of payments, more established players—the banks—are often competing with newer market entrants—often mobile operators or non-bank financial institutions—to offer mobile money.

Each player has its own advantages, which Consult Hyperion very aptly summarized in the table below. While banks are usually slow-moving when it comes to implementing new technology, mobile network operators are often faster to innovate and already have extensive distribution networks in place. However, they lack the financial discipline and security that banks have. Third-party led mobile money schemes may have the most room to innovate but do not have economies of scale.



Source: Consult Hyperion

In order to overcome these weaknesses, it makes sense for each player to work with a strategic partner.

FTB (Foreign Trade Bank of Cambodia) and Wing are a good model of cooperation between a bank and a non-bank institution in Cambodia, leveraging off each other's strengths and leapfrogging to the latest technology with minimal investment on both players' parts. The two entities have partnered to launch prepaid Visa cards which customers will be able to top up using Wing's mobile payment system. This partnership is a boon for customers as it will be cheaper to send money to anyone in Cambodia as the VISA cards can be topped up from anywhere. In Cambodia, no one from the banking system has really partnered with a non-bank institution in the past.

Read more on the deal on Phnom Penh Post

If you're interested in entering Asia's emerging markets, then you shouldn't miss Total Payments Asia, which will be held in Bangkok this October 8-9. Visit our website to get the latest program and to see the latest speakers!

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