Two Japanese-owned financial companies – Renet Japan Group and SBI Holdings Inc. – entered into a joint venture yesterday to form Mobility Finance Cambodia Plc. According to a joint press release issued by the firms, Mobility Finance will be adopting financial technology, or Fintech, in its day-to-day operations as a vehicle leasing company.
Both Renet Japan and SBI Holdings said the joint venture would be capitalised at $500,000, with SBI holdings holding a 51 percent stake and Renet Japan a 49 percent stake in Mobility Finance. In the joint press release, Mobility Finance said it plans to start a business by acquiring a lease license from the National Bank of Cambodia.
“Cambodia has been enjoying a strong GDP growth of 7 percent. In line with this economic development, the finance market of the country including the leasing sector is bound to grow rapidly in the future,” said the release.
Mobility Finance said it would be using Fintech in implementing GPS technology and the “pay-as-you-drive” model in other industries, such as long-term car rental and insurance.
“The additional benefits associated with having a GPS device in a car include vehicle location and the ability to keep track of the use of fuel, speed, braking distance, acceleration parameters, driving time and drivers’ working hours,” added the leasing firm.
Mobility said Fintech also allows its clients to manage their lease portfolio. “Due to economic circumstances and evolving business models, the leasing industry has also grown over the years. More and more companies now rely on leasing assets as a means of operating as a business.”
Meanwhile the National Bank of Cambodia and the private sector are holding talks to determine inputs for Fintech regulations. Bank director-general Chea Serey said yesterday at a Fintech Awareness Forum at the Sofitel Hotel early this month that the bank was preparing regulations which would be announced publicly soon.
“There are a variety of services in Fintech and it is not only a service for money transferring,” she said. “Fintech contributes a lot to financial inclusion and that allows people access to financial services at reasonable prices. It also enables rural people to access financial services easily.”