Loop Surpasses Other Mobile Banking Services in Features and Loans

The introduction of mobile banking apps and services in Kenya meant easy access to loans for many individuals, especially those who could not access the same from traditional banks.

A mobile banking app, which is often an independent loan tool is provided by banks and other financial institutions to lend money. A mobile banking service, on the other hand, is mainly provided by commercial banks to lend, manage, monitor, and make other money transactions.

Kenya has over 20 independent mobile loan apps and a majority of the Kenyan banks have their own mobile banking services. 

The adoption of the use of these tools by lenders seeks to extend the bank’s reach and to lure customers (both existing and prospective), as well as to elevate the experience of banking. 

While it has fostered financial inclusion across the country, the ease of use, the proficiency, along with the process is not universal in all the available banking tools. Some are way better than other, and each has its unique features, rates, and policies. This is one factor that many consumers look at.

On the bright side, mobile banking solutions have gained massive fame depending on the lending body. Most of them offer loans to customers and non-customer without the necessity of paperwork.

The interest rates charged vary from one lender to another. Most financial institutions give loans with an interest rate that is above the Central Bank approved figure – 14 percent. The cycle of borrowing constantly change and the repayment period is mostly after a month. The amount varies with others offering up to 70 000 shillings.

This mode of banking has enabled people to save, invest and elevate their living standards. In short, it has revolutionized how Kenyans view and utilize banking solutions. The adoption is solely because of its convenience, the flexibility, and unnecessary queuing in banks.

That said, there is no denying that some of these mobile banking apps and services are better than others. Loop, marketed with the hashtag #LoveLoop is a good example.

Loop is a digital money service launched by the Commercial Bank of Africa (CBA) in March 2017. Initially, it was simply a money management and consumer service tool, but now it offers loan and leverages customer data to disburse them. This way, they have negated the need to visit the bank or deal with the typical financial documentation.

CBA has made tremendous changes to make the service even more convenient. Where banks were designed for painstakingly slow transactions and tedious approval processes, Loop seeks to make the experience very appealing. But is this money management and a lending tool like any other on the market?

READ: Smiles For Borrowers As CBA’s Loop Starts to Offer Loans

For one, the lender has reviewed all the tariffs it provides through Loop. In fact, some of the transactions charges have been zero-rated! What more do you desire to embrace the advantages of financial access through a smartphone?

It gets better! Which other loan app or mobile banking service can offer you loans of up to 3 million shillings and an overdraft of up to 100 000 shillings? That’s right. CBA’s Loop is the only digital banking service provider that does that without your visit to the bank.

Through this mobile banking solution, customers can make Loop-to-Loop transactions with ease. This includes airtime purchase – which is free – making payments using Safaricom Pay Bill and buying goods and services. These services will attract no additional bank charges. Nevertheless, Loop to M-PESA and ATM withdrawals, using this CBA’s product, have been decreased by 44 percent and 40 percent respectively.

It offers a comprehensive tool for management, unlike the conventional mobile banking apps. The financial tool allows you to monitor, budget, and analyze your income against your expenses more frequently. The result is presented using a graph for faster and conclusive understanding.

The dynamicity of Loop doesn’t only allow you to track your expenses, but it also enables you to save, set financial targets and invest. Amidst the new services introduced by the bank, Loop now has a new user interface.

In terms of operability, the interface, the ease of use, and the navigation couldn’t make the experience any better. Loop is available for both Android and iOS devices and can be downloaded through the bank’s website. After a few registration steps, you can become a Loop user in no time.

Designed with the user in mind, Loop appeals to the changing consumer preferences and the technological trends. More than that, it addresses the needs of any customer, particularly the millennials, which is why it is one of the best solutions for digital mobile banking.