Hattha Kaksekar Limited

Hattha Kaksekar Limited, HKL is committed to long-term social and financial sustainability and improving the income of its clients. HKL provides loans, savings, and other inclusive financial services countrywide, in particular to women and low income families in rural areas.

+A food security project established by OCSD/OXFAM–Quebec, a Canadian organization, provided loans to rural people in four communes of Pursat province.

+The food security project was registered with the Ministry of Interior of Cambodia as a non-governmental organization (NGO) called Hattha Kaksekar. In Khmer, “Hattha Kaksekar” means “Farmer’s Hand” or “A Helping Hand for Farmers”. The Head Office of Hattha Kaksekar NGO was based in Pursat province.

+Hattha Kaksekar (HK) NGO was registered with the Ministry of Commerce with paid-up capital of USD 77,850 to transform itself into a limited company with a new name, Hattha Kaksekar Limited (HKL). At the same time, HKL was granted a three-year license by the National Bank of Cambodia to operate microfinance services across Cambodia.

+2003: HKL increased its paid-up capital from USD 180,000 to USD 257,850. This came from capital investment from CORDAID, based in the Netherlands. CORDAID held 19 percent of the total shares and became the fifth shareholder of HKL in addition to the existing shareholders: HK NGO, HK Staff Association, Solidarité Internationale pour le Développement et l’Investissement(SIDI), and a private shareholder.

+2007: The savings account and configured systems were put in place. Meanwhile, HKL increased its capital from USD 257,850 to USD 1,339,700. Due to its sustainability in terms of finance, operation and governance, HKL was offered an MFI permanent license by the National Bank of Cambodia.

+2008: There was a new capital injection from Oikocredit, Norfund and Triple Jump in HKL. Thus, paid-up capital of HKL increased to USD 2.7 million. Within the year, HKL introduced the Local Money Transfer Service to its clients and the public to adapt to their changing needs.

+2010: HKL was offered an MDI “Micro-Finance Deposit Taking Institution” License by the National Bank of Cambodia due to the sustainability of its operations and finances. This license disclosed one of HKL’s successes in providing customers with financial services, permitting HKL to officially mobilize savings from the public. Remarkably, the MIS team was working on equipping the Core Banking System to provide a prompt and efficient service, and in response to the company´s strategy to transform itself into a commercial bank in the future.

+2011: The registered capital of HKL was raised from USD 2,716,800 to USD 4,036,800 to adapt to the volatility of its business environment. The rise in capital was derived from capital investment of responsAbility and other shareholders.HKL had already installed the new Core Banking System as planned. The new system enabled customers to withdraw their money as needed at all HKL offices.

In early 2011, after the conducting of an institutional rating to evaluate its banking business by Microfinanza Rating, HKL received a grade of “A-” which reflects very good operation and performance. This means that the institution is stable despite being affected by major internal and external events, and that the risk is being appropriately monitored and managed to minimize its effects.

+2012: Hattha Kaksekar Limited’s new Core Banking System successfully went live across the company’s distribution network. This new on-line system increased the effectiveness of HKL’s business operations. HKL invested nearly 2 million USD in the ATM and mobile banking project. This investment facilitates the offering of a wide range of financial services and serves customers fast and conveniently through cash machines and mobile banking services. With ultramodern ATM and mobile banking services, customers can perform many new transactions including cash deposits, fund transfers, remittances, mobile top-up and currency exchange, etc. The ATM service was publicly launched by the end of 2012.

+2013: This was a fruitful year because HKL developed many new products to meet the demands of customers such as green loans, student loans, and SMS notification services. Also, to provide customers with professional, fast, convenient and best quality customer services, HKL have completed the installation of the Call Center System. This has excellent functions, which increases the duration of the customer service period for HKL, as well as improving the mechanism for collecting complaints and feedback from customers to improve its performance.

+2014: A fruitful achievement year for saving, credit and other fee-based products. Due to its sustainability in terms of finance, operation and governance, HKL has increased its paid-up capital from USD 4,036,800 to USD 5,271,188 with the National Bank of Cambodia. With the new paid-up capital, Hattha Kaksekar Limited has the capability to expand its business operations countrywide.

+2015: A successful year in which HKL expanded its branch networks across the nation, with 151 operating/operational branches and 102 ATMs in service and 2,337 employees working in 25 provinces and cities throughout the country. Mobile Banking and ATM services made up a greater proportion of daily transactions, indicating higher levels of product knowledge among HKL customers.