As financial institutions look for ways to improve the process of accessing financial services in Kenya, Commercial Bank of Africa (CBA) is setting the pace for players in this market with its diverse mobile app Loop. The app offers users the ability to invest as little as Sh1,000 and to save for multiple goals.
Under the theme “Unbank Yourself”, Loop gives you an opportunity to save and invest directly from the convenience of your mobile phone while allowing you to track the progress of your savings.
Since launching in March 2017, CBA has improved Loop in various ways thanks to the feedback it has received from customers. Users can now enjoy a wide range of services including its newly added feature of mobile loans.
In this article
Kenya’s Savings and Investment Culture
Last year, the Cabinet Secretary of Treasury Henry Rotich expressed his concerns regarding the saving culture in Kenya which is negatively affecting the country’s total Gross Domestic Product.
“The savings rate in Asian economic giants such as Singapore and Malaysia is as high as 40 per cent of individual incomes. If our GDP is to grow in double-digit rate, people have to save more,” he said.
Pension fund managers have also raised the same concern highlighting that most Kenyans are not saving for their retirement which could lead them to extreme poverty.
According to a 2017 article by deputy director of asset finance at NIC Bank Lennox Mugambi, the young working class in the country has a poor savings culture made worse by unplanned car purchases.
“They are keen on making their way up the middle class and achieving financial freedom, but frequently make poor financial decisions such as taking unnecessary car loans. This limits their ability to save, invest and prosper,” he notes.
Kenyans have also been criticised for often focusing on land investments as opposed to other asset classes such as shares and bonds.
Fortunately, Loop offers an opportunity for Kenyans to save more thanks to the convenience and simplicity of the app. Loop also provides an alternative investment where a user’s money earns interest over time. That means that Loop is the digital financial planner every Kenyan needs to help them reach their goals and remain financially stable.
How to Invest with Loop
To get started investing with Loop, download the app and register your Loop account. If you are already registered on the app, log in and click the “Growth” option.
- Select “Invest” to set up your investment.
- Type in the title of your investment and the amount you want to invest in.
- Once you have set up your investment, Loop will offer you the best rates in the market.
Loop will give you a payout inclusive of the accrued interest after a certain period of time such as three or twelve months. If you do not want to receive your payout just yet, you can re-invest your money.
How to Save with Loop
Saving with Loop is as easy as setting up goals on the app and working towards them. With Loop, you can save for your Masters Degree, your first car, your vacation, your home, or a rainy day.
“Gone are the days when you had to open five different bank accounts for different savings needs,” CBA says in a statement.
- To get started, click “Growth” then select “Loop Goals.”
- Add the details of your goal including the goal name, the type of goal, the amount, the term of your goal, the frequency of your payment, the initial amount of your saving, and the start and end dates of your goal. Additionally, you can run multiple goals at the same time. For example, you can save for a vacation as you save to purchase a piece of land.
- Once you have created your goal, save it and begin tracking the progress you are making. The app will display the progress of your goal’s savings in percentage.
Why Should you Use Loop for your Savings and Investment Needs?
Loop stands out from other savings apps because it helps you save by adding your goals. This goal-specific form of saving helps you to remain focused, disciplined and committed. That means that with Loop, your chances of achieving your goals are guaranteed. Furthermore, you can track your savings’ progress which includes how much you have saved so far and how much is remaining before you reach your target.
Loop also helps you run multiple goals at the same time which gives you the convenience of saving for all your goals on one platform. So you can forget about being overwhelmed while saving for several goals at once because Loop will make it easy for you.
With regards to investment, Loop is different from other apps because it gives you the best rates in the market and you can also choose when to get your payout. In addition, as you save and invest through the app, you can monitor your spending habits, budget your income, and get personal loans of up to Sh3 million.
In view of CBA’s efforts to give customers what they want, Loop is changing the financial landscape in Kenya by promoting the saving and investment culture in the country.
