CBA’s Loop mobile application is changing the way Kenyans manage their spending habits through a budget feature that tracks a user’s set budget versus their spending. This app comes at a time when the country is grappling with rising gambling addiction which is leading to financial demise.
Destructive Spending Habits: Gambling and Car Loans
A Geopoll survey carried out last year revealed that Kenya has the highest number of gambling youth in Sub-Saharan Africa followed by Uganda and Ghana. In Kenya, gambling, especially in sports, has become a popular activity as more Kenyans hope to make a fortune and as more betting companies venture into this sector.
According to Quartz, the gambling menace in the country is pushing Kenyan youths into poverty and suicide after they make huge losses of money they were not prepared to lose. Kenya ranks third after South Africa and Nigeria as Africa’s largest gambling markets.
Another destructive spending habit in the country is the taking of unplanned car loans among the young working class, a decision that impedes saving and investment.
The Financial Manager: CBA Loop
In light of the gambling crisis, unplanned loans, and harsh economic times, CBA Loop is the financial tool that every Kenyan needs. The multi-dimensional app not only allows you to get loans, save and invest but also ensures that you can track your budget and analyse where you are spending your money.
To set up a budget, log in to your Loop account and click ‘Growth.’ Once you are in the growth section, select ‘Budgeting’ and create your first budget or budgets. For instance, if you are creating a healthcare budget for a dentist visit, add it as your category and insert the amount you want to spend.
The app will then record how much you use from your Loop account to pay for the dentist visit so that you can view whether you are within or beyond your budget.
The app also features a tool that analyses your spending habits against your income and presents it in form of a chart. That means that you can find out which expenses are taking the most of your income and adjust accordingly.
For example, if you realise that you are spending a lot on leisure and gambling than you should be, you can make the necessary adjustments and save more.
Other interesting features on Loop include tracking your cash flow, net worth, and seeing how you are fairing financially compared to your friends that are also using the app.
Debit Order
In addition, you can create a Debit Order for frequent payments or savings and the app will do the work for you free of charge. The app lets you know when these frequent payments are due and when the money has been transferred.
Loop offers several options for sending money such as sending to another Loop account, to mobile money, and to a bank account via Pesalink, RTGS, and EFT.
In view of the above Loop features, the app not only allows Kenyans to unbank themselves but also offers a gateway of moving from financial ruin to financial preservation.
