Company Profile 2020
FUNAN is the subsidiary Company of Cambodia Post Bank Plc., operates its lending business through the 51 branches covering all potential areas both in the provincial and district towns. The shareholders of parent company is from the Candia Investment Holding (CIH) with 50% of share proportion, 45% is from The Fullerton Financial Holding (FFH)—the well-known financial investment in Singapore, and the state own company (Cambodia Post) is 5%.
While Cambodia Post Bank targets to Mass Market in Cambodia, the value proposition of FUNAN is to complement to its parent company’s market segment by specializing in micro loan lending to low income and rural people where the Bank is hard to access.
The year of 2020/ Adapting the digital platform as new way of business
In 2020, the new way of interaction and living with social distancing as global pandemic outbreak, the COVID19, pushing people to get more experiences in using digital platform for their daily life. In 2020, FUNAN has been developing the Loan Origination System (LoS) and commit to roll out very soon by 2021. It is kind of loan digitized process. Within the year, FUNAN changed the coperate color in line with parent company branding . By this year, FUNAN is having 51 branches, 5 branchless areas (Business hubs), 547 employees, and total loan portfolio is USD56.8 Million.
The year of 2018/ Growth and Franchises Development
In June 2018, we started to implement the loan disbursement through Darapay (PSP) in the branchless operational areas then rolled out to all coverage areas as the choice for customer. In 2018, FUNAN expanded two Branchless areas. In July 2018, FUNAN signed business cooperation with Sovannaphum Life Assurance for Group Credit Life Protection. And others business cooperation with Darapay, Cambodia Post Bank Plc., and the local shops as merchants for the loan referrals. By this year, FUNAN was having 51 branches, 2 branchless areas (Business hubs), 646 employees, 19,856 clients, and the loan outstanding was increased to USD47 Million.
The year of 2017/ Business Transformation
The change of shareholders was approved by the National Bank of Cambodia (NBC) on 4th April 2017 and approved by the Ministry of Commerce on 11 April 2017. In May 12, 2017, FUNAN organized an official shares transfer event attended from new and existing shareholders, authorities, staff and management, other national and international distinguished guests. FUNAN Microfinance Plc. has been transformed and defined new target market segment complementing to the segment of its parents company, the Cambodia Post Bank PLc. To reduce loan collection at field by Credit Officer while almost 100% of loans were conducted at field, In June 2017, FUNAN entered into agreement with WING, the biggest Payment Service Processor (PSP) in Cambodia, to enlarge loan repayment channels and started transforming clients to pay at officer counters and WING agents nearby them. Then, in December 2017, FUNAN joined another cooperation with Darapay (PSP) on loan repayment.
Transforming to Microfinance Institution
In August 11, 2015 Cambodian Association Development (CAD) received the microfinance license from National Bank of Cambodia (NBC) named FUNAN Microfinance Plc; and legally registered with other government authorities such as Ministry of Commerce in June 2015 and General Department of Taxation in July 2015. All assets and liabilities of the CAD had been transferred and received officially approval by the National Bank of Cambodia in August 11, 2015. In 2016, FUNAN Microfinance Plc had 49 branches, 733 employees, more than 30,311 clients and loan outstanding around USD 10 Million. On 30th November 2016, Cambodia Post Bank Plc. entered into a sale and purchase agreement (SPA) with the Company’s shareholders to acquire 100% shares of the Company.
License as Non-Government Organization (NGO)
Established in July 2011 as an NGO named Cambodian Association Development (CAD) legally registered with Ministry of Interior to provide the quality micro-loan to the poor for developing their community. By the end of 2014, CAD had 49 branches, 821 staffs, more than 30,000 clients with loan outstanding around USD4 Million.