Plain-language definitions for every fintech and digital finance term you will encounter in Cambodia's ecosystem — from Bakong and KHQR to KYC, AML, and blockchain.
64 terms across 6 categories
Showing 64 of 64 terms
| Term | Definition |
|---|---|
| AI / Machine Learning | Artificial intelligence and machine learning algorithms used in fintech for credit scoring, fraud detection, chatbots, and personalized financial advice. |
| AML | Anti-Money Laundering — laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. |
| API | Application Programming Interface — a set of protocols that allows different software applications to communicate and share data with each other. |
| Bakong | Cambodia's national retail payment system developed by the NBC, built on blockchain technology. It enables real-time transfers between banks and e-wallets in both KHR and USD. |
| Big Data | Extremely large datasets that require specialized tools to store, process, and analyze, often used in credit scoring, fraud detection, and customer analytics. |
| Blockchain | A distributed, immutable digital ledger that records transactions across a network of computers without a central authority. |
| BNPL | Buy Now Pay Later — a short-term financing option that allows consumers to make purchases immediately and pay in installments, often interest-free. |
| CASA | Current Account Savings Account — low-cost deposits held by banks that form the base of their lending capacity. |
| CBDC | Central Bank Digital Currency — a digital form of a country's fiat currency issued and regulated by the central bank. Bakong is considered a CBDC-adjacent system. |
| CFT | Combating the Financing of Terrorism — regulatory measures that prevent financial systems from being used to fund terrorist activities. |
| Chargeback | A reversal of a payment transaction initiated by the cardholder's bank, typically due to a disputed or fraudulent transaction. |
| Cloud Computing | The delivery of computing services — servers, storage, databases, networking, software — over the internet rather than on local hardware. |
| Core Banking System | The central software that processes daily banking transactions and posts updates to accounts and other financial records. |
| Correspondent Banking | An arrangement where one bank provides services on behalf of another in a different country, enabling international transactions and cross-border payments. |
| Credit Bureau | An agency that collects and maintains individual credit information and sells it to lenders. In Cambodia, Credit Bureau Cambodia (CBC) is the primary bureau. |
| Credit Score | A numerical expression of a person's creditworthiness based on their credit history, used by lenders to evaluate loan applications. |
| Cross-border Payment | A financial transaction where the payer and recipient are located in different countries, requiring currency conversion and international settlement. |
| Cryptocurrency | A digital or virtual currency secured by cryptography that operates on a decentralized blockchain network, such as Bitcoin or Ethereum. |
| CSX | Cambodia Securities Exchange — the national stock exchange of Cambodia, regulated by SERC, where companies list shares and bonds for public trading. |
| Cybersecurity | The practice of protecting computer systems, networks, and data from digital attacks, unauthorized access, and damage. |
| Data Encryption | The process of converting data into a coded format that can only be read by authorized parties with a decryption key. |
| DeFi | Decentralized Finance — financial services built on public blockchains that operate without traditional intermediaries like banks or brokers. |
| Digital Finance | The delivery of financial services through digital channels such as mobile apps, internet platforms, and electronic payment systems. |
| Digital Onboarding | The process of enrolling new customers into financial services entirely online or via mobile app, without requiring a physical branch visit. |
| E-wallet | A digital wallet application that stores funds electronically and enables payments, transfers, and top-ups via smartphone. |
| eKYC | Electronic KYC — digital identity verification using biometrics, OCR, and AI to onboard customers remotely without physical paperwork. |
| Financial Inclusion | Ensuring individuals and businesses have access to useful and affordable financial products and services — accounts, payments, savings, credit, and insurance. |
| Fintech | Financial technology — the use of software, algorithms, and digital platforms to improve or automate financial services and processes. |
| Float | The balance of funds held in an e-wallet or payment account that has not yet been transferred or spent. |
| IBAN | International Bank Account Number — a standardized format for identifying bank accounts across national borders to facilitate international transfers. |
| Insurtech | Insurance technology — the use of digital tools and data analytics to innovate and improve the insurance industry. |
| Interchange Fee | A fee paid by a merchant's bank to a cardholder's bank for processing a card transaction, typically a percentage of the transaction value. |
| Interoperability | The ability of different payment systems, platforms, or institutions to exchange and process transactions with each other seamlessly. |
| KHQR | Cambodia's national QR code payment standard, developed by the NBC. A single QR code that works across all participating banks and e-wallets. |
| KYC | Know Your Customer — the mandatory process by which financial institutions verify the identity of their clients to prevent fraud and money laundering. |
| Lendtech | Lending technology — digital platforms and algorithms that automate and streamline the loan origination, underwriting, and servicing process. |
| MFI | Microfinance Institution — a licensed organization that provides microloans, savings, and other financial services to underserved populations. |
| Microfinance | Financial services — typically small loans — provided to low-income individuals or small businesses that lack access to conventional banking. |
| MSB | Money Service Business — a licensed entity that provides currency exchange, money transfer, or payment services outside of traditional banking. |
| NBC | National Bank of Cambodia — the central bank and primary financial regulator responsible for monetary policy, banking supervision, and payment system oversight. |
| Neobank | A fully digital bank with no physical branches that operates exclusively through mobile apps and online platforms. |
| NFC | Near Field Communication — short-range wireless technology that enables contactless payments by tapping a card or phone on a reader. |
| NFT | Non-Fungible Token — a unique digital asset verified on a blockchain, representing ownership of a specific item such as art, music, or collectibles. |
| Open Banking | A system where banks share customer financial data (with consent) with third-party providers via APIs to enable new financial services. |
| P2P Lending | Peer-to-Peer lending — an online platform that connects borrowers directly with individual lenders, bypassing traditional banks. |
| Payment Gateway | A technology service that authorizes and processes online payment transactions between merchants and customers. |
| POS Terminal | Point of Sale terminal — a hardware device used by merchants to accept card and contactless payments at physical locations. |
| PRAKAS | A formal regulatory directive issued by the National Bank of Cambodia (NBC) that has the force of law within the financial sector. |
| PSI | Payment Service Institution — an NBC-licensed entity authorized to provide payment services in Cambodia, including e-wallets and payment gateways. |
| QR Code Payment | A payment method where a customer scans a merchant's QR code (or vice versa) using a mobile app to initiate a transaction. |
| Regtech | Regulatory technology — software solutions that help financial institutions comply with regulations efficiently and cost-effectively. |
| Regulatory Sandbox | A controlled environment where fintech companies can test innovative products and services under relaxed regulatory requirements before full licensing. |
| Remittance | Money transferred from one country to another, typically by migrant workers sending funds back to their home country. |
| Robo-Advisor | An automated digital platform that provides algorithm-driven financial planning and investment management with minimal human supervision. |
| SaaS | Software as a Service — a software distribution model where applications are hosted in the cloud and accessed via the internet on a subscription basis. |
| SERC | Securities and Exchange Regulator of Cambodia — the government body that regulates the capital markets, securities, and investment industry in Cambodia. |
| Settlement | The final step in a payment transaction where funds are actually transferred between financial institutions to complete the exchange. |
| Smart Contract | Self-executing code stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met. |
| Stablecoin | A type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as USD or gold. |
| SWIFT | Society for Worldwide Interbank Financial Telecommunication — a global messaging network used by banks to securely transmit information and instructions for international money transfers. |
| Tokenization | The process of replacing sensitive data (like a card number) with a non-sensitive placeholder token to reduce the risk of data breaches. |
| Two-Factor Authentication (2FA) | A security process requiring users to provide two different forms of identification — typically a password plus a one-time code — before accessing an account. |
| Wallet Address | A unique alphanumeric identifier on a blockchain network used to send and receive cryptocurrency, analogous to a bank account number. |
| Wing Bank | Cambodia's first licensed digital bank, formed from the merger of Wing (mobile money) and Pi Pay. Provides banking, payments, and remittance services. |
If you encounter a fintech term not listed here, let us know and we will add it to the next update.
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