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Retail Banking Strategy

Presented by: Mr. Nhean Virak, HMPJun 25th, 2015InterContinental Hotel, Phnom Penh

Outstanding Banking and Microfinance Awards 2015

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1. Overview

Cambodia Post Bank Plc. (CP Bank) a full licensed commercial bank was grated by National Bank of Cambodia dated on 20 September 2013 and official launching within 26th September 2013.

With strategic partnership between CANADIA Investment Holding Plc., (CIHP) Cambodia Post (CP) Ministry of Post and Telecommunications of Cambodia Government and Fullerton Financial Holdings Pte, LTD. (Fullerton) 100% subsidy by TEMASEK Singapore Government state own Company.

A snapshot of the CP Bank

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3. Capital Structure

A snapshot of the CP Bank (Cont.)

Shareholders Percentage

Canadia Investment holdings PLC 50%

Fullerton Financial Holding 45%

Ministry of Posts and Telecommunication 5%

Total 100%

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Canadia Investment Holding PLC (CIHP) is one of Cambodia’s largest and most successful financial holding companies, with a portfolio of financial services investments in banking, micro-finance and insurance, serving large corporate, SME and mass market customers throughout Cambodia.

Fullerton Financial Holdings Pte.Ltd. (“FFH”) invests in and operates financial institutions in emerging markets. Currently, FFH has investments in nine financial institutions, spanning seven countries, with a total of over 3,300 outlets serving almost seven million customers. FFH is a wholly owned subsidiary of Temasek Holdings (Private) Limited, an investment company based in Singapore.

Cambodia Post of Ministry of Posts and Telecommunications (MPTC) is the government ministry that governs the postal system and the telecommunications systems of Cambodia.

SHAREHOLDERS

Established Committees at the Bank Management Level

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At the Bank management level, there are 5 committees have been established. They are:

1. ALCO Committee2. Operational Risk Management Committee3. Credit Committee4. Procurement Committee5. HR Committee

Each committee plays a very important role in supporting the Bank’s growth and business strategy.

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Retail Banking Proposition

Products

Saving account

a) Tiered saving accounts aligning to segment needs.b) Internet saving account targeting at young and i- savvy segment

Micro Credit Card

Term Deposit

a) Multi currency time depositb) Flexible time deposit with flexible tenor

options

Debit Card

Current account

a) Repayment current account link to loan and mortgage loansb) Current account links to reward program

Term Loan

a) Increase acquisition of retail customers by extending reach and accessibility

b) Link up with external vendors to increase attractiveness of debit cards.

c) Increase number of ATMs and POS will improve stickiness of core deposit.

a) Secured and non secured credit card for employees and none employeesb) Increase acquisition of retail customers by extending more products.

a) Vehicle and Mortgage Loan will be developed to segment needs.b Flexible interest rate with flexible tenor as well as flexible repayment mode options.

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Business Banking Proposition

Cash Management - Products Features

Cash Management

Liquidity Management

Collection Payment

Account Services

Account Services: • Domestic/Foreign

currency account• Transactional

account with tiered pricing

• Loan repayment account

• Competitive and flexible FX pricing and proposition

Collection : • Cash pick up services• Cheque Discounting• Inward Telegraphic

Transfer• Bulk payment

Payment : • Direct Debit• Cheque Deposit

Solution• Cross-Border/Domestic

Payment• Bill payment• Payroll

Liquidity Management:• Automated cash

concentration structures

- Pooling- Sweeping

• Interest Optimisation

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Retail Strategic Plan

Target Segments

Target Market

Business Banking Retail Banking

Corporate Affluent

Micro Small and Medium Enterprise Mass Affluent

Self Employed Mass Market

Salaried Mass Market

Existing Potential

Retail Banking

• Target segment : mass affluent and

self employed

• Extend customer touch points

through mobile banking

Business Banking

• Provide comprehensive cash management

product offerings to MSME

• Relationship manager teams to build and

provide advisory services

Financial Institution

• Build and maintain relationship with key Financial Institutions

Primary Bank for Retail Mass Affluent and MSME

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Retail Banking Proposition

Focus on Self Employed and Retail Mass Affluent

• Affluent: Income >USD3k, Average CASA balance USD35k

• Middle : Income ~ USDUSD700 – 3K, Average CASA balance USD1k

• Mass : Income ~ USD500-700, Average CASA balance USD500

• Convenient access points via a wide agent/merchant network and superior

customer service

• Provide peace of mind to customers, as they know their money is safe.

• Differentiated product offerings using mobile/online and social media platform

• Agent sales team to acquire, onboard and manage agents relationship

• Commission based sales team from local community to acquire and onboard

merchants

• Deploy branchless banking

• Periodic & regular customer engagement via various communication media

• Maximize current branch distribution network supported by localized

marketing(mobile/Internet/social) and community activities

Target Segment

Value Proposition

Market Engagement

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Branch Networks

Currently: 18 branches

CP Bank 5 years Aspirations

Nationwide financial services provider

99 branches in all 24 provinces

Agent/Merchant network providing mobile/Internet Banking solutions

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5-Year Plan – Strategic Drivers

Deliver sustainable faster growth

Leveraging on mobile/Internet banking solutions

Improve productivity and return on asset and equity

Build a stronger branding

Adopt technology driven approach to streamline middle and back office

Strong discipline in expenses and governance on risk controls

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Thank you!

Contact Us: 023 220 772/220 773Hot line: 070 200 002Email: info@cambodiapostbank.comWebsite: www.cambodiapostbank.com.kh