Embracing New Territories

A couple of years ago, I felt a twinge of restlessness. You know, the cosmic nudge that suggests it’s time for a life shakeup? So, my wife and I did what any adventurous couple would do: we packed our bags and relocated to Southeast Asia. We hoped to dive headfirst into the payday loan industry, seeing it as a chance to usher in global financial inclusion for unbanked individuals. Our first stop? The exotic charm of Cambodia.

Sleek Banking Trust in Cambodia

Picture this: In Phnom Penh, there are 36 banks for every 1.5 million residents! That’s right—Cambodians have a level of faith in their local banking system that would make even a seasoned investor blink twice. In a place where banks have a flawless record (never failed), and fraud feels like a myth, the financial landscape is booming. The U.S. dollar is practically a second national currency here, and local regulators are not exactly known for their heavy-handed control.

But wait! When we dipped our toes into the lending scene, we found that banks wouldn’t lend a dime without collateral, and by collateral, I mean house deeds and mountain of paperwork. All this fuss results in remarkably low overdue loans — just 0.9%! To us, this was a signal: a *huge* opportunity to wipe away the old-school methods with some shiny new blockchain technology.

Lessons from the Cambodian Experience

As we honed our business model in Cambodia, we put together a handy checklist for evaluating potential countries for our operations. If you’re eager to expand into promising Southeast Asian markets, take some notes:

• A booming middle class driven by GDP growth (Cambodia saw a 6% increase back in 2016!)
• A market with inexpensive leads: surprise! Every Cambodian has at least one Facebook account, and they often equate Facebook with the Internet.
• Minimal competition, especially for paperless lending services.
• An audience yearning for help: only 5% of Cambodians had a credit record when we arrived, with unbanked individuals making up about 80% of the population.
• A solid local partnership: we learned that enlisting local partners not only aids in legal compliance but also offers genuine insight into local clientele.

The Importance of Local Partnerships

In our thrilling journey, we discovered that having a reliable local partner is like possessing a cheat code to success. After vetting around thirty organizations, we found the perfect allies! Our co-founder, Tetsuji Nagata, brought along a Japanese venture fund and a wealth of experience.

For legal assistance and office space, we partnered with Oknha Sorn Sokna, a man with deep ties to Cambodian politics and business. His support was crucial in helping us navigate the local environment.

Understanding the Workforce

Hiring local employees was a reality check! We quickly learned that Cambodians have a unique work culture shaped by their societal norms. Here are some takeaways from our recruitment journey:

• Short-term Thinking: Cambodians prioritize immediate needs over long-term goals, driving the popularity of quick loans.
• Patriarchal Influence: Employees expect a familial atmosphere; they thrive when treated like part of the corporate family.
• Camaraderie Over Individualism: Team-based work is the norm, standing in stark contrast to Western ideals.
• Job Satisfaction is Key: Employees can leave on a whim if they feel undervalued. Trust is everything!
• Single-tasking Preference: Our staff blossoms in focused tasks rather than juggling multiple responsibilities.

Facebook as a Catalytic Marketing Tool

Ask me how we pioneered our marketing strategy in Cambodia, and I’d say: Facebook! Our website, combined with viral social media campaigns, helped us grow our fan base quickly, with 500,000 authentic followers sharing their experiences! In a market that thrives on instant connections, this proved invaluable in promoting our financial services.

The Road Ahead

What started in Cambodia turned into an exhilarating expansion across Myanmar, Thailand, and Sri Lanka. By anchoring our operations in these vibrant markets, we’re steadily paving the way for financial inclusion, catering to the millions still on the outskirts of the banking realm. Southeast Asia is an electrifying region, packed with individuals eager to elevate their lives— and we’re dedicated to being their partners in this journey.