Microfinance sector growth and monitoring from credit bureau perspective

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Microfinance Sector Growth &

Monitoring : Credit Bureau

Annual Microfinance Workshop

Sihanouk, 24th December 2015

Confidential Property of Credit Bureau Cambodia

CBC is covering a range of customers from bank to

microfinance, leasing and rural credit operator

Operator: 112

Customer: 1.9 Million

Account: 2.5 Million

Loan Portfolio: $ 10,047 Million

Industry Performance Microfinance Performance

PAR: 1.2 %

Average Loan Size: $ 3,960

Female Borrower: 70%

Operator: 51

Customer: 1.5 Million

Account: 2 Million

Loan Portfolio: $ 2,875 Million

PAR: 0.49 %

Average Loan Size: $1,434

Female Borrower: 75%

Microfinance in a

glancePerformance distribution Multiple loan situation Loan quality CBC’s Solution


Cambodia is the country with youngest population

from 20-39 years old with high credit utilization

0.49%

20.24%

32.36%

22.87%

16.68%

6.82%

0.55%

0.62%

17.06%

29.90%

25.90%

19.32%

6.94%

0.26%

45% 35% 25% 15% 5% 5% 15% 25% 35% 45%

<=19

20-29

30-39

40-49

50-59

60-69

>=70

Microfinance consumer by age group as of Nov 2015

Male (375,000) Female (1,125,000)(0.3%)

(6.9%)

(18.7%)

(25.2%)

(30.5%)

(17.8%)

(0.6%)

Microfinance in a

glance Performance distribution Multiple loan situation Loan quality CBC’s Solution


30-39 years old is the highest credit usage in

Cambodia microfinance

[20-29] Years Old15%

[30-39] Years Old33%[40-49] Years Old

27%

[50-59] Years Old19%

[60-69] Years Old…

Outstanding Balance Shared by Age GroupThe highest credit utilization is within

the age of 30-39 years old which

account of 33% of the total loan

portfolio

The category of 20-29 years old is

majority represented by customers

from 25 years old

Microfinance in a



Business Loan and Personal Finance are the two

main products offered by MFI

8.43%

63.80%

21.54%

6.23%

LOAN PORTFOLIO BY PRODUCT TYPE AS OF NOV 2015

Social Loan Bussiness Loan Personal Finance Mortgage

Product Type FY 14 FY 15 Δ

Social Loan $ 192 M $ 242 M 26%

Business Loan $ 1,310 M $ 1,835 M 40%

Personal Finance $ 388 M $ 620 M 60%

Mortgage $ 139 M $ 179 M 29%

$2.8 Billion

Microfinance in a


Business Loan


US Dollar is dominance in Cambodia microfinance

both in urban and rural areas

Currency FY 14 FY 15 Δ

Khmer Riel R 537 M R 548 M 2%

Thai Bath B 79 M B 94 M 19%

US Dollar $ 1,795 M $ 2,267 M 26%

Total New Loan $ 2,411 M $ 2,910 M 21%

KHR

19%

THB

3%

USD

78%

NEW LOAN BY CURRENCY AS OF NOV 2015

Microfinance in a



In average, customer hold 1.2 loan accounts with

microfinance institution

73.8%

19.0%

5.8%

1.2% 0.2%

1 2 3 4 5

Percentage of Customer by Account Holding as of Nov 2015

2 Accounts1 Account 2 Accounts 3 Accounts 4 Accounts 5 Accounts

Microfinance in a

glance Multiple loan situation Loan quality CBC’s SolutionPerformance distribution


Microfinance borrower is shown to be more loyal to

their institution

Product Type

FY 14

borrowers

FY 15

borrowers

Δ

1 Institution 1,109 K 1,240 K 12%

2 Institutions 238 K 261 K 9%

3 Institutions 64 K 66 K 4%

4 Institutions 9 K 8 K -15%

5 Institutions 0.9K 0.60 K -32%

78.71%

16.58%

4.19%0.48% 0.04%

1 2 3 4 5

Loan relationship with difference institution

Microfinance in a

glance Multiple loan situation Loan quality CBC’s SolutionPerformance distribution


Cambodia is considered to be a good microfinance

market as maintaining good quality of loan with

PAR30 below 1%

PAR FY14

0.52%

$ 10M

PAR FY15

0.49%

$ 14M

40%

Business

Loan

Personal

Loan

Housing

Loan

Social

Loan

PAR FY15 0.33% 0.95% 0.46% 0.57%

FY 14 $ 2,725 K $ 7,117 K $ 344 K $ 270 K

FY 15 $ 6,103 K $ 5,908 K $ 825 K $ 1,381 K

Δ 124% -17% 140% 410%

1 Inst. 2 Inst. 3 Inst. 4 Inst. 5 Inst.

PAR FY15 0.45% 0.59% 0.66% 1.19% 3.18%

FY 14 $ 7,838K $ 1,937K $ 505K $ 139K $ 39K

FY 15 $ 9,663K $ 3,245K $ 1,005K $ 239K $ 66K

Δ 23% 68% 99% 72% 70%

Microfinance in a

glance Loan quality CBC’s SolutionPerformance distribution Multiple loan situation


Loan performance and its quality is vary depending

on geographical location

+7%

+39%

+160%

Account Balance NPL

Tonle Sap Region

+2% +32%

+295%

Account Balance NPL

Coastal Region

+23%

+51%

+35%

Account Balance NPL

Plateau Region

+4%

+35%

+5%

Account Balance NPL

Plain Region

Microfinance in a

glance Loan quality CBC’s SolutionPerformance distribution Multiple loan situation


From the market performance, how CBC can help its

member to better know the market condition for

healthy growth and sustainable development?

Microfinance in a

glance CBC’s SolutionPerformance distribution Multiple loan situation Loan quality


CBC solution to help member decision

Loan Disbursement

Credit Report

K-ScoreAnalytic Report

Monitoring Service

Batch Review

Microfinance in a



Illustration of Data Analytic Reports currently

commercialized in CBC

ABC Microfinance

Microfinance in a



Keeping ourselves relevant to the industry, the population and the

country’s economical sector by using the needed technology

Wider and deeper range of

online Dashboard

Loan Decisioning – near

instant approval decision

Mobile app with offline

capabilities for Credit Officers

Research, assessment and

reports

Credit report on website

Microfinance in a


Thank You

Economy & Finance

Microfinance sector growth and monitoring from credit bureau perspective