15 Apr 2025 4 min read Cambodia

Why ABA Sets the Standard for Banking in Cambodia—But Doesn’t Get a Free Pass

ABA is the most operationally competent bank in Cambodia. Fast onboarding, digital dominance, and QR ubiquity set it apart—but interbank friction and overstated cross-border promises mean it still deserves scrutiny.

TL;DR
ABA is the most operationally competent bank in Cambodia. It onboards foreign clients quickly, dominates QR payments, and has modern infrastructure. It doesn’t get a free pass—cross-border payments remain limited by national infrastructure, and interbank friction exists—but ABA remains the benchmark.

Market Access and ABA’s Default Position

ABA Bank is the reason serious capital is looking at Cambodia.
In a region where access is narrowing and foreign clients are increasingly met with resistance, ABA presents a rare exception: a bank that is operationally open. Not just in slogan—but in practice. Clear terms, functioning infrastructure, and fast onboarding set it apart from peers across Southeast Asia.

Unlike other markets that claim openness but introduce friction through layers of local requirements, ABA has positioned itself as the default. Its brand presence is omnipresent. The mobile app is widely adopted. QR payment acceptance is near universal. ABA didn’t need to be discovered—it was already everywhere. That’s not luck. That’s execution.

Foreign Ownership and Financial Credibility

The bank’s evolution supports that. Originally a one-branch institution, ABA was acquired in 2007 by a Kazakhstan-based investor group. It was recapitalized and professionally managed. By 2014, the National Bank of Canada became a minority investor and increased its stake to 100% by 2019. Today, ABA is fully foreign-owned and backed by a global bank with over $300 billion in assets. This capital base has enabled ABA to scale aggressively while maintaining credibility.

Its financial performance reflects that growth. ABA reported net income of CAD $343 million (~USD $254 million) in 2023, with over 1.5 million clients and a dominant footprint in mobile payments and merchant adoption. The bank handled $34 billion in transaction volume back in 2019 alone, a figure that has grown substantially with the rise of QR payments.

Digital Infrastructure and Economic Impact

ABA’s role in digitizing Cambodia’s economy cannot be overstated. The bank helped lead the shift from cash-based commerce to QR-based payments, contributing to a nationwide total of $492 billion in digital transaction volume in 2023—roughly 15x Cambodia’s GDP. ABA’s app integrates seamlessly with KHQR and the Bakong system, enabling domestic QR payments across institutions and even abroad. It is the cornerstone of Cambodia’s cashless transition.

ABA’s digital infrastructure reflects a fintech-like culture. Many of its core functions were developed in-house, allowing for better control over user experience. Its mobile platform now resembles a regional super-app, offering integrations for bill payment, ride-hailing, mobile top-ups, and more. This has allowed ABA to scale without an excessive branch network—most customers now transact digitally by default. CEO Askhat Azhikhanov explicitly modeled ABA’s roadmap on China’s Alipay and WeChat Pay, positioning it as a one-stop shop for everyday commerce alongside core banking services.

Onboarding Process for Foreigners

Onboarding for foreigners is relatively frictionless, though ease varies by nationality. ABA accepts all valid Cambodian visa classes—tourist, business, and others—and requires proof of a six-month intended stay, which can be demonstrated via visa extensions, leases, hotel receipts, employment contracts, or a business license. The minimum deposit is $50 for non-residents. U.S. persons must comply with FATCA reporting, while nationals from countries subject to global AML/CFT scrutiny may face additional documentation requests. In practice, ABA’s onboarding process is efficient, but the level of scrutiny can differ based on internal risk ratings.

System Gaps and Oversold Capabilities

ABA’s marketing around cross-border QR interoperability has outpaced real-world functionality. Attempts to use ABA’s QR system in Thailand and Vietnam routinely fail at the point of sale, but this is not a failure of ABA’s infrastructure. The underlying issue lies with the National Bank of Cambodia’s interoperability layers—not with ABA itself.

Merchants are unlikely to know or care whether a QR code originates domestically or internationally. What matters is whether the central clearing systems and bilateral agreements between countries function as promised. At present, they don’t. That gap belongs to the regional payment networks and their enforcement bodies—not to individual commercial banks executing on their end of the stack.

For context, regional QR interoperability requires:

Bilateral central bank agreements
Technical standardization
Merchant education

Cambodia’s KHQR has achieved domestic success, but regional integration is still evolving.

Friction and Market Concentration

Interbank friction persists despite KHQR, partly due to:

Legacy systems at smaller banks
Varying implementation of real-time protocols
Natural network effects favoring the dominant player

While ABA-to-ABA transactions are near-instant, transfers to and from smaller banks often suffer from delays. Merchants increasingly request ABA-only payments to avoid these problems, reinforcing the bank’s quasi-monopoly. ABA's estimated 40% market share in mobile payments (2023) creates natural liquidity advantages that smaller banks struggle to match.
The National Bank of Cambodia’s interoperability mandate is intended to prevent this, but enforcement has been weak. ABA continues to comply with the letter of the law while sidestepping the spirit of open banking.

Outlook and Competitive Implications

ABA’s success demonstrates that strategic foreign investment and technological execution can transform a local bank into a regional leader. Its infrastructure is modern. Its policies are transparent. Its digital offering is effective. The institution delivers.

For Cambodia to attract sustained foreign capital, more banks must meet this standard. The sector doesn’t need one digital monopoly—it needs competition that rewards operational excellence. ABA isn’t perfect. But it is functioning. That alone distinguishes it in a market where many institutions still rely on paper forms, opaque processes, and informal networks.
ABA’s story shows what happens when capital, execution, and technology align. The test will be whether Cambodia’s banking sector can produce a second ABA-scale success story within the next regulatory cycle. Local banks like ACLEDA—or foreign entrants such as Singaporean digital banks—could pressure ABA if they replicate its tech-first model. The hope is that others follow.

Disclaimer: The information provided in this article is accurate as of the time of writing. Rates, fees, and policies quoted are for informational purposes only and may vary by client profile. Banking policies, regulations, and offerings may change without notice. Readers are encouraged to verify details directly with financial institutions before making any decisions. Banking Nerd is not responsible for any changes that occur after publication.