Wing (Cambodia) Ltd specialised Bank, Cambodia’s leading mobile banking services provider, and Morakot technology are cooperating in financial technology (fintech) to further assist microfinance institutions (MFIs) and commercial banks in a loan collection process while helping them reduce cost.
The cooperation was made through a memorandum of understanding (MOU) signed yesterday.
Through this partnership, the MFIs and banks can now collect their loan payments via Wing’s financial ecosystem using the core banking system of Morakot Technology, ensuring convenience and effective operational cost management while customers of the MFIs and banks can elect to make their loan repayments through either nearby Wing Cash Xpress outlets or the cutting edge technology of the Wing Money app 24 hours a day, seven days a week.
Morakot’s Chief Executive Officer (CEO) Sophorth Khuon said that with almost 8,000 agents across Cambodia, MFIs and banks can focus on acquiring new customers and disburse new loans rather than the collections which ultimately improve productivity.
“I believe that the partnership with Wing will help our customers [MFIs and banks] in providing better services to their clients. Without the need to visit MFIs or banks’ branch offices, people can now pay back their loans with Wing agents,” he said.
Morakot technology is a leading core-banking system provider in Cambodia, founded in 2015 and is currently serving 45 MFIs and banks in Cambodia and Myanmar.
Wing and Morokot Technology share a common objective in using digital financial technology for
the transformation of the financial service industry in Cambodia, especially regarding financial inclusion ranging from core-banking systems to mobile banking.
Manu Rajan, CEO of Wing, said that the integration of Wing’s financial system and Morakot Technology is another avenue to leverage financial technology for the benefit of those living in the rural provinces and the MFIs as well as banks.
“Customers will not have to travel very long distances to repay their loans while the financial institutions can bring down their operational costs,” he said. “At Wing, it’s our commitment to ensure that our customers enjoy a wealth of financial solutions in a convenient, secure and fast manner.”
According to a joint news release, fewer than 5 percent of the MFIs in Cambodia could afford standard microfinance software and most of the software was designed for banks and not for microfinance institutions. So, there were a lot of very costly customisations that needed to be made for MFIs.
Considering the firsthand challenges that MFIs and banks face when it comes to loan distribution and management, Morakot Technology, which was established in 2015, offers loan-tracking and accounting processes in one central hub to the MFIs and banks. The platform also integrates with credit bureau databases, which facilitates faster loan approval and processing.Wing has provided convenient access to financial services to many Cambodians through the latest technology of the Wing Money app, as well as the a network of nearly 8,000 Wing Cash Xpress stations.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.