Wing partners with Metfone for money transfers

Thursday 23 September 2010
Telecomparer.com

ANZ's subsidiary Wing Cambodia, which provides mobile money transfer services, has partnered with mobile operator Metfone. Following the agreement, the service will be available for Metfone customers and the companies are discussing making Wing services available via Metfone's 190 stores, the Phnom Penh Post reports. Other Wing partners include Mobitel, Beeline, and Excell. Recently, Mobitel has launched its own mobile transfer service as well, following a USD 5 million grant from the GSM Association.

Mobile Service Targets Cambodia's 'Unbanked'

Customers can withdraw or deposit money from their WING accounts at local Cash X-Press outlets.
WING customers can access their accounts and send money through their phones.
A market seller uses WING for a payment.

SEPTEMBER 14, 2010
By ANDREW LAVALLEE
Wall Street Journal

How do you roll out a banking service in a place where most people don't have bank accounts?

Australia & New Zealand Banking Group Ltd. tackled that question in developing WING, a banking and payment system it launched in Cambodia early last year.

In Phnom Penh, said Peter Dalton, ANZ's general manager for innovation, it's not uncommon for workers to send money to relatives in rural areas via a taxi-bound courier, which is risky as well as expensive. The Melbourne, Australia, bank estimates that only about 500,000 of the country's 14 million population have bank accounts, but "there is a need for saving and sending money," he said.

In addition to "unbanked" consumers, there are the "underbanked"—those who have bank accounts but don't have ready access to them because branches and automated teller machines are rare in many parts of the country, Mr. Dalton said.

A large number of Cambodians do have cellphones, though. WING works on four of the country's major mobile networks—hello, qb, Mfone and Smart Mobile—via a simple interface. Customers enter their account numbers and personal identification numbers, then see a menu of options that includes checking their balances, paying bills and sending money.

To send money, they enter the recipient's WING account number, or if the funds are going to someone who doesn't have a WING account, the person's mobile-phone number. (Funds are tied to the WING account, not the phone, so a customer won't lose his money even if his phone is lost or stolen.)

Recipients are notified by a text message when the transfer is complete. ANZ charges about 50 cents to send the equivalent of $20, a notable savings when compared with the $1 to $2 that Cambodian couriers typically cost.

There are now some 150,000 WING accounts, and Mr. Dalton said he wouldn't be surprised to see the service reach 200,000 customers by early next year. ANZ hasn't set a target number, however, he said. "We love the growth rates that we have now."

In addition to the technological challenges of creating a mobile-payment service, ANZ had to figure out a cost-effective way to introduce it "to people who have never seen this before," he said. To do that, the company enlisted a fleet of 1,800 "pilots," part-time workers who sign up new customers and teach them how WING works. They receive a commission for each new sign-up and help spread the word about the program, often at markets and other high-traffic areas.

"There comes a time when you need cash," Mr. Dalton acknowledged, and that's where WING's Cash X-Press comes in. About 500 outlets are located throughout Cambodia's 24 provinces, and there WING customers can deposit and receive money through the service.

The Cash X-Press outlets, like the WING pilots, are another way of marketing the service, but they also help keep its costs down because they serve many of the same functions as ATMs, which are more expensive to build and maintain.

ANZ, which is working with its ANZ Royal subsidiary in Cambodia, plans to extend WING to support more types of billing, such as electricity and water, for its customers, and it hopes to offer the ability to transfer funds in other currencies, such as dollars.

It is also interested in getting local employers signed up to use the service. Cambodia's garment industry, for example, still largely pays workers in cash, which results in long lines on paydays, Mr. Dalton said. Using WING would allow an employer to pay its work force much faster and with fewer opportunities for error.

In addition to tapping a growing mobile-payment market, Mr. Dalton said WING promotes business development and a stronger understanding of how money works among its user base, particularly when it comes to saving. It also gives customers in poor areas an alternative to informal couriers and loans, which often carry high fees and theft risks.

"We think this is a service that encourages both economic and social development," he said. "You can actually generate more healthy economies."

Now, corporate sponsorship for Armed Forces ... soon, corporate sponsorship of the police and government officials?

Cambodia Announces Corporate Sponsorship for Armed Forces

22 Mar 2010
Luke Hunt
World Politics Review

Simmering tensions along Cambodia's border with Thailand has prompted Prime Minister Hun Sen to deploy a series of new initiatives to bolster his country's military.

The moves range from an old-fashioned show of muscle in the form of missile tests and military exercises, to corporate sponsorship of the armed forces that has angered humanitarian groups and non-governmental organizations (NGOs).

Analysts said the moves can be traced to the periodic border clashes between Thai and Cambodian troops near the ruins of the 11th-century temple, Preah Vihear, where a military standoff has resulted in occasional bloodshed since mid-2008.

Hun Sen declared that more than 40 partnerships had been established with businesses to provide food, medicine, tools, buildings and transport for Cambodian troops and their families. One of the businesses named was Metfone, a subsidiary of a mobile phone company owned by the Vietnamese military. Rubber plantations, a television network and an oil company were among the other companies to sign up for the deal. Another company mentioned was ANZ Royal, a joint partnership between Australia's ANZ Bank and one of Cambodia's biggest business conglomerates, the Royal Group. In Melbourne, ANZ denied any involvement with military sponsorship, saying it would be inappropriate.

Hun Sen is personally overseeing the program, which has angered humanitarian groups. London-based Global Witness has called on donor countries to condemn the sponsorship plan, saying it would lead to businesses receiving military protection in exchange for financial backing. But Cambodia's ambassador to the U.K., Hor Nambora, warned Global Witness to stop meddling in Cambodia's internal affairs and threatened legal action.

The program is seen as an effort to fund the Cambodian military at a time of heightened bilateral tensions with Thailand over Preah Vihear, as well as over Phnom Penh's support for Thailand's former Premier Thaksin Shinawatra, who was ousted in a coup.

As the deal was being put together, Cambodia also conducted its missile tests, the first public drill since the country's civil war ended more than a decade ago. About 200 rockets were fired from truck-mounted launchers at an airfield about 110 miles from the Thai border. Hun Sen, not known for his subtlety, called the tests "a normal drill and preparation to defend the nation in case there is an invasion."

At the same time, Hun Sen won some support from the United States with the announcement that around 1,000 soldiers from 23 countries will undertake military exercises in Cambodia in July, as part of the U.S.-funded Global Peace Operations Initiative (GPOI).

Details of the maneuvers were confirmed during talks with U.S. Adm. William Crowe earlier this month and were designed to "enable Cambodia to sustain and improve its peacekeeping missions in the future."

Cambodia has previously sent peacekeepers to Sudan, and more than 200 Royal Cambodian Armed Forces soldiers will depart for Chad and the Central African Republic next month to supplement a contingent of peacekeepers deployed to both countries last November.

Sacrava's Political Cartoon: The Back Scratching

Cartoon by Sacrava (on the web at http://sacrava.blogspot.com)

ANZ subsidiary linked to Cambodian army

ANZ subsidiary linked to Cambodian army

The ANZ subsidiary has denied any involvement. (ABC News: Michael Janda, file photo)

Wednesday, March 03, 2010
By Liam Cochrane for Radio Australia
ABC News (Australia)

ANZ Royal, a subsidiary of one of Australia's largest banks, has denied it is involved in a scheme that creates partnerships between private businesses and Cambodian military units.

Cambodian prime minister Hun Sen announced the initiative last week and said more than 40 partnerships had been established to provide food, medicine, tools, buildings and transport for troops and their families.

One of the businesses named as a sponsor of the Cambodian army was Metfone, a subsidiary of a mobile phone company owned by the Vietnamese military.

Another on the list was ANZ Royal, a joint partnership between Australia's ANZ Bank and one of Cambodia's biggest business conglomerates, The Royal Group.

Cambodian council of ministers spokesman Phay Siphan says the scheme reflects Cambodian culture.

"Some Cambodians on management [at ANZ Royal], they have the chance to mobilise their charity to support some [soldiers]," he said.

"The charity hasn't just been supported today, it's been years already. It's just that they have been assigned it so that the people understand who they help."

ANZ Royal has declined to comment to ABC's Radio Australia, but chief executive Stephen Higgins has been quoted in local media saying that he is unsure how his company's name appeared on the list of military sponsors, saying it might be "some type of printing error".

A statement from ANZ in Australia said "it is not appropriate for ANZ to provide support or sponsorships to individual military units in any country in which we operate".

"ANZ Royal Bank, as a subsidiary of ANZ, has not and will not be providing such support," the statement said.

Seeking answers

The initiative to formally link businesses with the military has raised concerns among human rights groups that work in Cambodia.

Naly Pilorge, a spokeswoman for the rights group LICADHO, says "it is especially concerning because some of these ministries [involved] have absolutely no link to the military, such as those that are supposed to focus on youth or women or health".

"That's the question we are trying to find the answers to, because right now it is very unclear.

"It is alarming because some of these ministries have nothing to do with the military, and for good reason."

Ms Pilorge says a similar scheme would not be tolerated in other countries.

"In most countries, developed countries and developing countries, it would be illegal for business in the private sector to openly and directly fund the milliary," she said.

"But by dealing so openly there is an assumption that the military is open to any group or any company that wishes to use the military to protect its interests and its private interests.

"We have see this over the country over the years in terms of land grabbing. We have seen the military used, especially in the rural areas... to evict people to protect the interests of economic concessions.

"This is really disturbing because legislation says the miliary is to protect citizens equally and not be used for the private interests of companies.

Major Banks To Provide Loans for Smaller Enterprises

By Ros Sothea, VOA Khmer
Original report from Phnom Penh
10 June 2009

Cambodia Public Bank and ANZ Royal will provide loans to small and medium businesses, through a program with the UNDP and International Trade Center.

The loans will be available from October 2009 and will focus on 100 agricultural-related businesses. The two banks were selected from some other banks that had an interest in offering loans to small and medium enterprises, said Hin Wisal, UNDP assistant country director.

The UNDP is working with the International Trade Center to provide technical support to banks and businesses for the 18-month project. The Agence France de Development will provide credit guarantees for two partner banks.

“It is very important for SMEs to get formal loans from commercial banks to extend their growth,” Wisal told VOA Khmer. “To support policy development, we need to promote formal access to credit.”

Trade experts and economists say Cambodia’s small and medium enterprises are currently driving the economy. But these businesses lack the formal financial support they need to expand, because banking and finance in rural areas are not fully developed.

Studies show that of around 64,000 small and medium enterprises in Cambodia, only 80 percent get loans from banks. Informal loans, meanwhile, lead to financial problems down the road.

The bank-loan project will provide financial management training and guidance to enterprises. Under the project, the two banks will be able to evaluate strength and weakness of the businesses.

“More and more customers will seek a loan from a bank rather than other sources,” Stephen Higgins, chief executive officer of ANZ Royal said. “We make money, and they make money.”

Robert van Zwieten, director of capital markets and the financial sector for the Asian Development Bank, encouraged more banks to turn their eyes to small and medium businesses.

“It’s going to be far more interesting when you provide loans to SMEs, because they grow quicker, and SMEs are seen as the biggest generators of jobs,” he told VOA Khmer by phone from Singapore. “As a bank, if you have done a great service to your respective customer then you will have a long relationship for a long time to come and hopefully a profitable one. It will be beneficial for the country.”

Public servants' salary paid through ANZ Royal bank accounts

Source: Reaksmei Kampuchea newspaper
Reported in English by Khmerization

The government has for the first time implemented a system of salary payment through bank accounts, under the policies of e-government initiatives to cut down corruption and transparency in government's financial accountability, reports Reaksmei Kampuchea.

The new system will allow public servants to receive their pays in their bank accounts which allow them to make withdrawals through ANZ Royal Bank Automated Teller Machines (ATM) anywhere across the country.

Mr. Lon Hour, Undersecretary of State in charge of finance at the Ministry of Information, said four ministries had the salaries of their employees paid through bank accounts a few months already, but at the Ministry of Information the system had been in place since May 2009 but so far only one employee's account had been opened with ANZ Royal Bank.

Mr. Lon Hour said that any public servants who have the salary of 400,000 riels (US$100) per month will get their pays in their bank accounts. Anyone who has a salary level lower than 400,000 riels, but holds a position as director or deputy director of a government department will also have their pays paid through their bank accounts.

This new payment system has been hailed by many employees whose pays had often partly gone missing or their whole pays delayed for months. Some public servants even had parts of their pays docked or stolen by their corrupt superiors in an extortionate manner.