Phillip Bank: Bigger and better with digital transformation

Phillip Bank: Bigger and better with digital transformation

Phillip Bank Plc, one of the larger financial institutions in Cambodia, is seeing a stronger and brighter headway since its successful merger with KREDIT Microfinance Institution (MFI) early this year.

The sole Singaporean Commercial Bank here has also proved its stability as it continues to do well despite the novel coronavirus pandemic which has otherwise ravaged the global economy.

Phillip Bank’s merger with KREDIT Microfinance became official in February of this year. Chan Mach, the Chief Executive Officer of Phillip Bank, admitted that they still have a lot to do since then.

The merger involved an expansion in customer segments that the bank serves, including Corporate, Retail, SME, Micro-SME and Microfinance.

“It is not only a physical merger. We also have to build the staff capacity. We have to change their mindset on how to run a commercial banking operation,” he stressed.

“We still have a long way to go. But we are on the right track,” he added.

Like everyone else in the sector, Phillip Bank has been affected by the coronavirus. But according to Chan, they are still doing well while shifting their focus to helping their clients, many of whom have been adversely affected by the health crisis and consequent economic downturn.

Phillip Bank counts more than 100,000 clients, more than 90 percent of which are Cambodians.

To help their clients, especially the lenders that are struggling financially due to COVID-19 pandemic Phillip Bank has instituted a scheme to ease such burdens.

“Some of them (customers) are only required to pay the interest for six months, while others availed a six-month moratorium in loan payments,” he disclosed.

According to Mach, the bank has helped around 3,800 of their lenders and involves more than $55 million loan value.

While helping its clients and customers, Phillip Bank is also moving forward with its vision to further digitalise its services for the benefit of everyone.

The company’s support doesn’t stop there.

Mach revealed the bank also donated funding to the Pasteur Institute, which is leading the effort to contain the spread of the deadly virus in the Kingdom.

As the progression of the pandemic is kept under control in the country, the bank launched its new version of mobile application “Phillip Mobile” on June 1. This new app has new features and functions that allow one to manage his/her money, round the clock, at the touch of one’s fingertips.

With the government planning to allow the resumption of classes by August, Phillip Bank has launched new school payment services via a partnership with Westline Education Group (WEG). The MoU with WEG was signed on July 17. The service allows parents or guardians to pay school fees via Phillip Mobile – an initiative which the bank hopes to extend to as many schools as possible by year’s end.

Mach said there will be more projects geared towards digital innovation soon, especially once the COVID-19 problem is abated.

“We are building new processes with digitalisation. We are growing our ecosystem. We aim to be a bigger bank in Cambodia,” he stressed.

In addition, Mach said the bank is also looking towards providing more digital services to customers. “In mid-August, Phillip Bank will launch a virtual card that will provide customers more options when shopping online through ‘Phillip Bank Virtual MasterCard,’” he noted.

The launch will come together with the introduction of the new Phillip Bank head office and celebrate Singapore’s 55th National Day. A long list of dignitaries, including Singapore Ambassador to Cambodia Michael Tan, is expected to grace the occasion.

Mach said they are also on their way to completing Phillip Bank’s integration with National Bank of Cambodia’s Central Shared Switch (CSS) system, which will allow customers to do cash transactions from ATMs of more than 20 banks that are part of the project.

“The bank has also become a member of Bakong project, initiated by NBC. The service will allow customers to do inter-bank transfers through the Bakong wallet,” he said.

“Besides providing innovative digital products and increasing partnership with other payment service providers, Phillip Bank will also look into rolling out new bundle-packaged products for its customers given the strong foundation of its sister companies, including Phillip General Insurance and Phillip Life Assurance,” he added.

In the near future, according to Mach, Phillip Bank will also launch a new online banking (Internet Banking) that will serve both corporate and retail customers as well as contain unique features that best fit the demands of Cambodian customers.

Along with its focus on business growth, Phillip Bank also makes sure that it serves the communities that nurture its development.

“Phillip Bank will continue focusing on its Corporate Social Responsibility (CSR) by working on its support to the disabled community and E2STEM, a STEM Education initiative,” said Chan, referring to the programme that trains young Cambodians to be professionals in the area of science, technology, engineering and mathematics.

Phillip Bank, according to Mach, will also be collaborating with an organisation called Kompea Phum Yerng as part of the CSR programme.

As a platinum sponsor of Singapore Street Art Festival held in February this year, Phillip Bank also contributed to the purchase of two art pieces by the Cambodian and Singaporean artists and that the purchased fund will be donated to two local organisations:

Cambodian Children’s Fund (CCF) and Cambodian Living Arts (CLA).

Phillip Bank is part of Phillip Capital Group, an Asian financial house headquartered in Singapore that has extended its presence in more than 15 more countries, including Australia, Cambodia, China (and Hong Kong SAR), France, India, Indonesia, Japan, Malaysia, Singapore, Thailand, Turkey, UK, UAE, USA and Vietnam. Phillip Capital Group has more than one million clients globally and more than $35 billion in assets under its management.

Phillip Capital Group first ventured into Cambodia in 2009, with a $100,000 investment in First Finance.

Phillip Bank has grown to be the third-largest bank in Cambodia in terms of branch network. From $100,000, its investment in Cambodia has now reached more than $110 million. Phillip Bank currently has 89 branches spread across Phnom Penh and 19 other provinces and cities.

Within the next five years, Phillip Bank expects to be a key player in the digital arena by bringing in new digital innovations that Cambodia has never done or seen before.