The New LOOP is an Ambitious Leap to Being Completely Unbanked!

If you recall, the original tagline from LOOP before their 2023 rebrand was “Unbank Yourself.” This phrase was memorable for its uniqueness—after all, it was a bank encouraging you to unbank. So, what happened to that message when NCBA Loop became simply LOOP? Is the dream of “unbanking” still alive? After the rebrand, many users reported being overwhelmed.

The new LOOP faced harsh criticism for trying to do everything at once, and pushing every feature front and center thus creating a noisy and cluttered experience. It has been over a year now, and LOOP says it has solved all those issues, overcame the hurdles of the rebrand. LOOP is now ready to emerge as a stable and authentic payment solution worthy of your attention and consideration.

From the moment the new app launched in January of 2023, it was evident that this wasn’t just a cosmetic rebrand for marketing purposes. This was a complete change of strategy. LOOP was moving from being traditionally-inclined banking services provider, to being a comprehensive fintech solution designed to meet the modern needs of individuals and businesses. 

LOOP’s transformation signals a new era where financial services are no longer confined to the rigid structures of traditional banks but are instead embedded into a digital ecosystem that offers convenience, flexibility, and, most importantly, a future-oriented approach to money management. 

Introducing LOOP

If you’ve never heard of LOOP, here’s a bit of history. LOOP originally launched as NCBA LOOP in 2017, a digital banking service under the umbrella of NCBA Bank, one of Kenya’s largest financial institutions. NCBA LOOP was conceived as a modern banking solution, primarily targeting tech-savvy young professionals who were looking for more than what traditional banks had to offer. It was an innovative product with a different approach—cool banking halls, an amazing app, and that catchy tagline. However, it remained tethered to the identity and limitations of a traditional bank.

In 2023, recognizing the shifting financial landscape and the changing expectations of its users, LOOP rebranded and restructured itself as a standalone entity. While it still maintains a link to NCBA Bank—primarily through its banking account services—LOOP now operates independently as a full-fledged fintech company. This rebrand wasn’t just about changing the logo and colors; it was about redefining the entire approach to financial services. LOOP is now positioned as a fintech solution that not only offers banking services but also provides a suite of tools and features designed to meet the diverse financial needs of its customers in an increasingly digital world.

The Shift from Banking to Fintech: A Strategic Evolution

LOOP’s transformation from a traditional banking service into a fintech platform is a strategic response to a global trend that has seen the convergence of finance and technology. This shift isn’t just about adding a few digital features to a bank’s offerings; it represents a fundamental rethinking of what financial services can and should be.

In a podcast interview we did in 2023, Eric Muriuki, the CEO of LOOP, articulated this vision. He emphasized that LOOP is no longer just a bank but a comprehensive payment and financial management solution. This shift reflects a broader understanding that the future of finance isn’t in the brick-and-mortar branches of old but in the digital platforms that can seamlessly integrate into every aspect of a user’s financial life.

Traditional banking, with its rigid structures and processes, is increasingly seen as insufficient in meeting the dynamic needs of today’s consumers. The original NCBA Loop recognized this early on by shifting from conventional onboarding methods to a digital experience. Now, with the rebranded LOOP, they’re taking an even bolder step—offering a platform is promising its users access to all their financial services in a single app.

This evolution not only simplifies financial management but also enhances convenience and efficiency, catering to the growing demand for quick, accessible solutions. LOOP’s approach is going beyond just offering services; users are promised a better understanding on a deeper level, and customizations of financial solutions that align with individual needs and lifestyles. By leveraging on data, LOOP promises to give its users a more personalized, user-centric experience, making it a frontrunner in the modern financial landscape in the region.

The Rise of Fintech Solutions: Why the World is Embracing Digital Finance

The rise of fintech is a global phenomenon that has been reshaping the financial services industry for over a decade. Fintechs are not just competing with traditional banks; they are shifting our whole understanding of finance. There are many factors bringing about this change: 

• Technological Advancements: The rapid advancement of technologies such as Big Data, Artificial Intelligence, and expanded mobile computing has revolutionized financial services, making them more personalized, efficient, and accessible than ever before. Fintechs, including LOOP, harness these technologies to create user experiences that far surpass those offered by traditional banks. With deeper insights into user interactions, transactions, spending habits, and more, the app can offer tailored financial solutions, such as setting personalized limits on loans and overdrafts, and enhancing both the safety and convenience of its services.

• Changing Consumer Behavior: Today’s consumers demand digital-first experiences in every aspect of their lives, including how they manage their finances. The convenience, speed, and personalization offered by fintech solutions have become highly appealing to those who are disillusioned with the slow and cumbersome processes of traditional banks.

• Business Benefits: For businesses, fintech solutions present more flexible, scalable, and cost-effective alternatives to traditional financial services. These platforms offer faster, more efficient payment systems, lending options, and financial management tools, making them highly attractive to businesses aiming to streamline operations and reduce costs. 

• Competitive Landscape: Fintechs are not just competing with traditional banks; they are also challenging traditional approaches to mobile money, such as physical agent-based models for withdrawals and transfers. By offering digital-first solutions that eliminate the need for physical infrastructure, fintechs are able to provide more convenient and lower-cost services to consumers. 

The rise of fintech has been particularly impactful in regions like Africa, where traditional banking infrastructure is often limited. In these markets, fintechs have been able to leapfrog traditional banks by offering digital solutions that are better suited to the needs of the population. LOOP’s transformation into a fintech platform is a direct response to this global trend, positioning itself as a leader in Kenya’s evolving financial landscape.

What LOOP Offers: A Comprehensive Financial Ecosystem

The LOOP app is a one-stop solution for all things finance. It goes beyond basic banking by integrating a variety of services into a single, cohesive platform. Let’s dive into some of the features on the app to give you an overview of the differences between it and traditional banking apps. 

• Payment Solutions: LOOP allows users to make payments seamlessly, whether through LOOP Pay, or third-party debit/credit cards. You can make these payments to many different merchants, or even to mobile money solutions like Tills and PayBills. The app’s payment solutions are designed to be flexible and accommodating. 

• Banking Solutions: While LOOP is no longer just a bank, it still offers traditional banking services through its connection to NCBA Bank. Users can manage their LOOP accounts, which are tied to NCBA Bank, and add third-party cards from other financial institutions. This flexibility allows users to consolidate their financial management into a single app.

• Deals and Offers: One of the standout features of the LOOP app is its integration of deals and offers from partner businesses. Whether it’s retail discounts, travel offers, or other promotions, LOOP provides users with opportunities to save money and get more value from their spending. This feature is not just a nice-to-have; it’s a strategic move that enhances the user experience and drives engagement with the app.

• Financial Management: LOOP offers a suite of financial management tools that go beyond what most traditional banks offer. Users can track their spending, savings, and loans, all within the app. Virtual cards and wallets for savings add another layer of security and convenience. These tools empower users to take control of their finances and make informed decisions about their money.

Competing in a New Financial Landscape

LOOP’s transformation has certainly positioned it as a formidable player in the evolving financial landscape, but it’s worth considering how it truly stacks up against both traditional banks and dominant mobile money services like M-Pesa. M-Pesa, for years, has been synonymous with mobile money in Kenya, its model deeply rooted in the pre-smartphone era where SIM cards and physical agents were the gateways to financial services.

But today, the rules have changed. Smartphones are now the central tool through which most people interact with their finances. In this new digital environment, LOOP offers a more integrated, feature-rich experience that claims to handle all of a user’s financial needs within a single app. It’s a compelling proposition—but can LOOP really deliver on all fronts?

This shift in focus is significant and reflects a broader change in how people think about and manage their money. No longer tethered to the physical infrastructure of bank branches, ATMs, or mobile money agents, users today expect to manage their financial lives directly from their smartphones. Apps like LOOP promise to make this easier, offering flexibility and more options at our fingertips. But with this convenience comes a question: Is this all-encompassing approach truly beneficial, or does it risk overcomplicating what could be straightforward financial tasks?

The Super App Approach: LOOP as a Financial Ecosystem

While many companies are chasing the dream of becoming a super app—a single app that offers everything from messaging to shopping to payments—LOOP has taken a more targeted path. The idea is that, by leveraging advanced data analytics, LOOP can get a clearer picture of its users—how they spend, how they save, what financial products they might need—and then offer solutions that are specifically tailored to them.

This approach is certainly designed to make LOOP more relevant to its users, but it also seeks to open new revenue streams in a financial world where traditional banks can no longer rely on transaction fees as a primary income source. The shift towards value creation through partnerships, targeted offers, and personalized financial tools is bold, but it’s also fraught with challenges. Will users embrace this new model, or will they view it as just another layer of unnecessary advertising, and illogical complexity in managing their finances?

In trying to redefine what it means to be a financial institution in the digital age, LOOP is not just competing with the established players; it’s attempting to rewrite the rules. But whether this strategy will resonate with users remains to be seen. 

By offering a comprehensive financial ecosystem, LOOP is aiming to do more than just keep pace with technological change; it’s striving to lead the charge into the future of finance. LOOP’s ambitious leap into the fintech space sets a new standard for what it means to be unbanked, offering a vision of a world where financial services are as dynamic, flexible, and forward-thinking as the customers they serve.