For years, major property and business transactions carried some risks, with buyers or sellers often transferring funds or documents before agreements were fully completed. The introduction of escrow services has helped address this long-standing issue by allowing banks to hold funds securely until all contractual conditions are met.

Building Peace of Mind through Escrow

Wing Bank entered the trust sector in July 2023 after obtaining a license from the Trust Regulator to operate as an escrow service provider. Since then, the bank has offered a comprehensive range of escrow services—including Public Trust, Financial Trust, Commercial Trust, Social Trust, and Individual Trust—to the public.

“At Wing Bank, we believe trust is the foundation of every strong community. Escrow services aren’t just about secure transactions—they’re about giving people peace of mind,” said Bunthe Hor, Deputy CEO of Wing Bank. “Whether it’s a family buying their first home or a small business closing a deal, we’re proud to stand beside them as a trusted partner.”

Through its Trust Service, Wing Bank acts as a neutral fund holder and agreement facilitator, ensuring security for both buyers and sellers. Escrow funds are released only when all agreed conditions are met, reducing risk and building confidence in both business and personal transactions.

Recently, the bank was honored with the award for “Outstanding Trustee Operator in Retention or Escrow Services for Safe Box in 2024” by the Trust Regulator (TR).

“Our Safe Deposit Box service was designed with the everyday needs of Cambodians in mind—from safeguarding family heirlooms to protecting critical business documents,” said Bunthe Hor. “We remain committed to building a safer, more inclusive banking experience for everyone.”

Wing Bank’s Safe Deposit Box Service offers secure and confidential storage for valuables and important documents, with a selection of box sizes to suit various needs—from compact units for jewelry to larger boxes for business records, as well as customized options for special items.

Each box includes USD 5,000 insurance coverage in case of damage or loss, and the service is available daily from 8:00 AM to 4:00 PM.

Escrow as the new trust mechanism

As a newly adopted system in Cambodia, this system replaces the fragile reliance on personal reputation with a formal, bank-mediated trust structure. By offering such mechanisms, the bank not only facilitates safer transactions but also cultivates trust in Cambodia’s broader financial ecosystem.

To move forward, earlier this year, Cambodia launched the Trust Sector Development Strategy 2025-2035, a 10-year roadmap aimed at creating an advanced, internationally aligned trust sector by 2035.

This strategy highlights the role of trust mechanisms in driving economic and social development while strengthening confidence among investors and development partners.

According to Rath Sophoan, Chairman of the Association of Banks in Cambodia, the banking industry has been placing greater emphasis on fair market conduct and strong corporate governance as escrow services expand across the sector.

“We have rolled out a code of conduct for the banking industry to promote professionalism and ethical standards,” he said, adding that an independent third party has been engaged to assess how member banks are implementing the code.

“There are a number of banks now offering escrow services that protect the interests of all parties involved and ensure smooth transactions.”

“The success of banking is premised on trust, so we see this as an important ongoing agenda, whether related to escrow services or general banking products. Banks are actively promoting these services and working closely with partners to capture new opportunities.”

Sophoan added that nearly 30 banks are currently licensed by the Trust Regulator to provide escrow and safeguard services. “With a regulatory foundation already in place and market momentum growing, we expect more banks will enter this space to meet rising demand,” he said.

Nong Sereyvuth, Deputy Director of the Research, Training and Cooperation at the Department of the Trust Regulator, shared that public education is a key priority to help boost public understanding of the trust sector.

“We’re developing simple and easy-to-understand educational materials, and working closely with market operators, business associations, the media, and universities through workshops, seminars, and training sessions,” he said, adding that within these efforts, the public can learn how trust structures can protect their assets and support safer transactions.

This article was originally reported by Kiripost. Read the full story here.