How Digital Innovation Created a Banking Giant
10/Oct/2024
In less than three decades, Advanced Bank of Asia Limited (ABA) has gone from digital disruptor to Cambodia’s largest commercial bank – by putting clients first.
ABA was established in 1996 with the aim of building its service around customers’ needs. Focusing on digital and self-service solutions, innovations such as its mobile banking app and the introduction of frictionless account opening have changed the face of banking in Cambodia.
Prioritizing accessibility and financial inclusion, ABA has grown to become Cambodia's largest commercial bank by assets, deposits, loans, and profitability. ABA Bank's CEO, Askhat Azhikhanov, credits this rise to the organization’s client-first strategy. “We always focus on our clients whenever we make changes or decisions,” he explains. “If we continue listening to our clients’ needs, we will be successful.”
Q: What is the secret of ABA’s success?
Askhat Azhikhanov: The secret to our success is the passion of our people. Our people built this bank from scratch and continue to develop it. We build services in-house because it allows us to be agile, flexible and client centric; we wouldn’t be able to change our services based on clients’ needs if we were to outsource our technology. This is crucial because for some platforms, we roll out changes twice a month.
Q: How has the bank’s strategic direction evolved?
Askhat Azhikhanov: In the past, we mainly focused on our retail clients. Today, ABA positions itself as a universal bank, serving everyone from street vendors to multinationals like Coca-Cola, Unilever, DHL and Chevron. We give them digital platforms, solutions and other specific products only multinational corporations use, while offering simple products like KHQR codes, a local payment method, to smaller entities. We were able to transform ourselves easily to the needs of the global community because we are a younger bank and it was easier for us to adapt to new technologies and innovations.
Q: How can you help more multinationals come to Cambodia?
Askhat Azhikhanov: We facilitate transaction, payment, overdraft and financing needs and offer the full scope of tailor-made financial products businesses require. Our message to US corporations and international investors is that they are welcome to invest in the Cambodian economy because we can walk the talk. In 2023 alone, local and international businesses processed 6.5 million transactions worth US$10 billion via the ABA online business banking platform. Companies coming to Cambodia wouldn’t have any issues with the banking system thanks to our expertise, knowledge of the local market, and innovation drive.
Q: How has the bank’s partnership with the National Bank of Canada (BNC) developed?
Askhat Azhikhanov: BNC chose us to become a partner as we share the same vision and mission. We have had good synergy for the past decade due to our interest in innovation, and continuous focus on micro, small and medium-sized enterprises. Having BNC as shareholder also bolsters our market credibility.
Q: What are your expansion plans for ABA?
Askhat Azhikhanov: We will continue with our client-centric strategy and try to provide all the services and products they demand. Market share is the last thing we think about when we deliver or create a service or product; it is merely a by-product of our work. Although we cater to big corporations through operational services, our focus remains on SMEs; at least 90 percent of our portfolio is still SMEs. As the Cambodian economy grows, we grow along with it.
Q: What about future innovations?
Askhat Azhikhanov: ABA Bank is working on machine learning and artificial intelligence, together with cybersecurity measures. Since we conduct a lot of digital banking, we maintain a mindset of bringing innovative solutions for our clients and delivering on their wants.
By Diane Nowell
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