The Commercial Bank of Africa (CBA) has introduced a new product that targets young urban professionals who want to bank on the go while on their smartphone or computer. The account can be opened from an app, Android at the moment, and on the web.
Kenyan banks have been increasingly creating digital products geared at getting customers who do not want to visit bank branches and CBA are taking the same route. CBA is not new to digital finance products as they partnered with Safaricom to launch M-Pesa and thereafter launched the mobile digital loan product, M-shwari.
How it works
Among the things you will be asked is your legal name, ID number and phone number. After completing filling in your details you will receive a PIN via SMS to activate your profile.
Once registration is done, you will need to choose a Loop centre that is near you where you’ll be able to collect a debit card for the account. You will get an SMS with a code that you will need when collecting your card.
The Loop stores are currently at; Yaya Centre, Garden City Mall, Mama Ngina Street, Sarit Centre, The Point BuruBuru and at Masai Mall in Rongai.
2. Card collection and KYC
To collect your card, you will be your ID and Ksh. 550. They will also take your picture and save your biometrics (two index fingers).
3. Loop features
Some of the active features on the Loop platform are:
a. Send money
Through Loop, customers will be able to send money to mobile phones and to bank accounts.
Mobile money will be sent through the following channels:
- Loop – To use this feature, the person you are sending to has to be a Loop customer. It costs Ksh. 33.
- Pesa Link – To use this feature, the person has to be registered on Pesa Link. It costs Ksh. 44.
- Mobile money – This encompasses M-Pesa, Airtel Money and Equitel. It costs ksh 69.3.
You can send money to bank accounts through the following channels:
- Loop – You can only ue this feature if the recipient is a Loop customer. It costs Ksh. 33.
- Pesa Link – You can use this feature if the recipient is registered on Pesa Link. It costs Ksh. 44.
- EFT – The recipient will receive money the next working if you send using this feature. It costs Ksh. 60.5.
- RTGS – Recipient will receive the money the same day if it is sent before 3pm. It costs Ksh. 60.5.
b. Pay bills
Customers will be able to pay bills via Loop to companies such as DSTV, GOTV, JamboJet, Nairobi Water, Zuku, KLC and StarTimes. They will also be able to buy Safaricom and Airtel airtime and also pay for parking in Nairobi, Land rates and business permits. The cost for this service is Ksh. 44 per transaction.
You can be able to invest money at a rate of 7.5% for a period of between 3-12 months. At maturity, the funds plus interest will be deposited to the customer’s Loop account.
d. Account top up
Customers will be able to top up their Loop account in the following ways:
1. Via M-pesa Payill 714777. Use your Loop account number as the account.
2. Transfer from another Loop Account
3. Transfer from a CBA Bank account
4. Wire transfer from other Banks
5. Cash deposit at any CBA Bank branch
e. Point of sale (POS) and online transactions
Customers will also be able to make POS and online transactions using the card connected to their Loop account.