The traditional Banking system is slowly dying and as we all know in a few years, banking halls will be a thing of the past but banking services will forever remain relevant and required. The initial move by CBA Bank into a complete digital space provides their clients with utmost convenience as they can access banking services through their phones and cheaply too. We all love a good deal!
CBA Bank has improved on its Loop app and the app now comes with extra features targeted to the millennial market. As part of the improvements, CBA last week re-launched their Loop account products. This was necessitated by the customer feedback they were receiving from their customers and the goals they had in mind when they first developed the product.
Similarities of Old and New Loop
Target audience remains anyone between 26-35 years
An exciting digital bank focused on unbanking millennials
Access to unsecured loans of up to 3 million Kenyan shillings
An overdraft facility of up to 100,000 shillings
Some of the Key features
Unsecured loans are those that a customer gets solely based on their credit score and therefore no collateral is needed. Through CBA, Loop customers can now access this loan without visiting the banking hall. Also, one is able to view from their application how much they qualify for which means if you’re suitable for the 3 million amount, you already know hence your approval is quick. The required documents are sent to you, and just like that, you have 3 million shillings maybe to expand your business or start one. Most banks will require your payslip but CBA understands that they are banking for the entrepreneurial millennial who does not have a formal payslip but require funding. No payslip no problem.
Notably, without notice, there is the availability of an overdraft facility of up to Ksh.100,000. If you are in a quick fix and you are a looper, there is literally no reason to worry. With a click of your finger, 100,000 shillings is now accessible.
Personal finance management made easier
At the end of the month when you are wondering where your money went or what exactly you used it on, CBA Loop has the solution. Loop ensures that you can track your spending as they also avail statements. Their Growth section on the new app which has:
Loop Invest. Here you can easily set your investments and make your money work for you by earning interest.
Loop Goals. Here you have the opportunity to set a goal to say for example clear H.E.L.B then you proceed to add your goal amount plus its term limit and also the intervals of payment. The App then proceeds to calculate your interval payments.
Budget section. Here, there are various categories ranging from fees, cash transfers to kids and family, entertainment and many others. Then as you spend, the app will automatically alert you as your limit gets closer. You will be able to stay on track and on top of your goals
Networth section. Here you can see your progress on what you owe vs what you own and easily track your finances worth.
With the new features, the Analysis section allows you to check where your money is going and get a comprehensive month report. You get to set your own financial calendar and have loop work for you. Those without accounting skills need not worry because, with Loop, everything is easier.
Transaction cost under new Loop
Loop to Mpesa
Loop to loop
Master card International ATM fee
Buy Goods- Pay to till
Purchase of airtime
Pay to Safaricom Pay bill
Loop ATM withdrawals and Loop to M-PESA costs have been reduced by 40% and 44% respectively.
The organization on the app has changed. The interface is more user-friendly providing a different digital experience. Customer feedback on the time it takes to set up your account has been taken into account. The good news is, this has also been now shortened.
All banks collect very valuable data but none of the banks is putting it to good use except CBA who are collecting data and making it work for the customer. It is now possible to compare your finances with that of your peers with the new Community feature as through the app you can see how you rank amongst your peers.
With the new revamped Loop app, the bank’s plan is to retain its target audience as well as encourage others to join in as the new loop is now all about the customer. The customer’s need and want plus the overall experience when consuming this new product is the key focus here. The average monthly amount in a ‘Looper’s’ account has been deduced to be about Ksh.13,000 which is about 3 times more of the normal bank account as explained by the product manager. Download the CBA Loop app from Google Play or the App Store.
CBA Loop is definitely the future and traditional banking systems should borrow a leaf here. The millennial market is big and through CBA, we can see that nothing is as luring as convenience, affordability and an awesome digital experience. Maybe it’s time you Unbank Yourself with CBA Loop.
Caroline Mumbe is passionate about anything money related. She is an entrepreneur and writer who enjoys simplifying financial concepts and making sure people lead their best financial lives. She reads a lot and knows the best coffee joints in Nairobi.