CBA Loop Sets Record with Money Lending Sum CBA Loop Re brands and Relaunches

Kenya’s largest privately-owned bank the Commercial Bank of Africa has upgraded its mobile application loan offers, to hit a record 3 million shillings. This is the highest loan amount for any Kenyan lender via mobile money.
The bank’s Loop program is aimed at young professionals. A demographic under the age of forty, largely called millennials today. As the central bank capped the rising interest rates of banks, many have turned to mobile lending for a return in profits. Safaricom through M-PESA has been very successful and has impressed many the world over. However, this is not the banks first venture into mobile money lending services. By way of Safaricom’s M-Shwari, the bank and the telecom company partnered to dole out cash to Kenyans through their phone accounts. The largest loan is limit is set at 20,000 KES for a period of 30 days.

Barclays bank previously had the highest amount for money lending via their app at 150,000 KES. The move comes just in time to battle it out for market share in the fintech industry among other mobile lenders like Branch and Tala. CBA Loop was first launched in March 2017 but did not receive a popular uptake, and it has remained unbeknownst to many until now.

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Their high loan limit is bound to attract new customers and it may even cause a shift to create new accounts by debt-free banking customers. The app has also received an upgrade making it more user-friendly and attractive, to increase customer usage. The availability of services strictly depends on whether you have an account at the bank. The bank also offers an overdraft of 100,000 KES through the app without the paperwork. Now for those who hate the cumbersome bank lines, procedures and bureaucratic processes, this is a dream feature.

The CBA Loop program was first received to little acclaim, but this move is bound to increase account uptake and definitely loans by users. The loop app is also available for both Android and App store users, making it convenient. Their website also guides one on how one can move from their current account to CBA via mobile. This will enable them to join the LOOP program. The step by step instructions includes, how to get registered via mobile. It is an easy process, that requires your full names, ID, PIN number and email address. There is also an easy verification process that involves inputting a code to confirm ownership of the number you are using to register.

The new user can then send money to the Loop pay bill 714777, get a fellow looper to loop them (optional stage) and one transfer from any other account to their loop account using Pesalink, EFT or RTGS. After this, a cash deposit is required at any of the CBA branches or via their cash deposit machines at select branches.

Their site is also very attractive and playful. It features bright colors, pastry and desert graphics that make it appealing to the younger generation they are targeting. Other than that, there is a show and tell content throughout their page to show first-time users how to engage in their app and how to use the program to their advantage. It allows for cheap rates between ‘loopers’, another bank or international recipients. The app also has a financial manager to make analyses of one’s spending habits. This enables you to know where your money is going and allocate accordingly. You are able to plan, track and analyze your money wisely.

Cash that remains in your account can also be invested for you. Allowing you to maximize the usability of the account. The loop to loop transactions will be free, including the purchase of airtime. The buy goods and services till by M-PESA will not attract additional charges and their ATM withdrawal charges have also been reduced. Loop to M-PESA has been reduced by 44% and Loop to ATM by 40 %. The bank has also emphasized their focus on experience for the customer, hence the new face of the Loop brand. To help customers manage their money in a much more rewarding way.
Source:Standard Digital Media