The Governor of the National Bank of Cambodia is calling on all banking and financial institutions to deal with customer complaints and fight off cyberattacks to strengthen the system as more people are using digital payments. 

The Governor of the National Bank of Cambodia, Chea Serey, has urged all banking and financial institutions to prioritise resolving customer complaints and strengthen their management against cyberattacks, while digital payment transactions jumped by 59.8 percent to 1.8 billion transactions in 2023.

The Governor made the request during a dissemination seminar on ‘Financial Stability Review 2023’ on May 20. She added that all banking and financial institutions should increase their customers' understanding of how to utilise payment systems sensibly and responsibly.

"We have noticed an excessive number of frauds on the digital payment system lately, and some people are utilising it improperly as it’s a new service,” she said. “So, they may seem convenient, but it comes with risks.” Chea emphasised that all institutions should pay close attention to these points.

However, she noted that the use of electronic payment systems grew rapidly, particularly after Covid-19, when there was a significant increase in transactions through the Bakong and KHQ systems.

“This contributed to improving the financial environment and facilitating trade, tourism, investment, and international money transfers,” she said.

According to the Financial Stability Review 2023, the total number of digital payment transactions jumped by 59.8 percent to 1.8 billion transactions in 2023. In terms of value, the total amount of digital payments was recorded at 2,021.3 trillion riel ($491.8 billion), an increase of 24.2 percent, equivalent to almost 12 times the Gross Domestic Product (GDP).

In 2023, the total amount of payment transactions through the Bakong system increased by 2.7 times to 302.0 trillion riel ($78.5 billion), of which the riel accounted for 26.8 percent. At the same time, the number of Bakong transactions jumped by five times to 200.9 million transactions, and the share of riel reached 34.2 percent.

It said that payment transactions through the Bakong system and QR codes have increased markedly while also contributing to promoting the use of the Khmer riel.

Moreover, the NBC has developed cross-border payment connectivity with other countries and international payment gateways in the region, aimed to further deepen economic and financial cooperation, and promote the use of local currencies in the region.

Rath Sophoan, President of the Association of Banks in Cambodia, said that all banks and financial institutions should improve their management systems in light of the growing prevalence of digital payments and cyber security. He added that this is necessary to preserve stability, prevent cyberattacks and raise public awareness of digital issues, particularly among users.

“In order to prevent this, it requires all relevant parties to participate both the financial institutions and users,” he said. “If the user is unaware of or cannot use it correctly, the criminal can assault them. So, we must enhance both.” He added that the association has established a mechanism to address concerns about digital payments.

“Customers may bring up issues with any bank they use, and if they are not satisfied with the solution, they can turn to the Association of Banks, which also has a centre dedicated to helping customers resolve issues,” he noted. Sophoan clarified that the association of banks is not the decision maker, but it facilitates the relevant side.

“If they don't like it, they can go to NBC. It can be up to the Commission for Consumer Protection as we now have a mechanism to safeguard consumers,” he said. “So, I encourage consumers to utilise or obtain financial services from the bank receiving licensing from the NBC.”

Given the amount of two billion transactions, he said that the case-solving effort was not significant in comparison.

He added that as so many people use digital payments, system stability is crucial. As a result, NBC has a mechanism for all banks to enhance their system and mandates that the banks notify NBC when there’s an issue.

In addition, he said that the banking sector has worked closely with authorities to address cybercrime. If he recalls correctly, there were 750 incidents of cybercrime in the banking sector in 2023.

“The bank sector has worked closely with the authorities and we have a crackdown on some cases. But, as we know, the criminals always find a new way,” Sophoan said. “So, putting the legislation into effect, enhancing the banking system, and raising user awareness would all aid in its reduction.”

Source from Kiripost News:  NBCGOVERNOR URGES BANKS TO STEP UP ACTION AGAINST FRAUD