Commercial Bank of Africa (CBA) has launched a digital banking app targeting millennials — young customers born after 1980 — becoming the latest lender to invest in digital platforms.
The privately-owned lender said the digital app, branded Loop, will allow customers to carry out regular transactions away from its branches — including opening a bank account instantly on their smartphones or desktop computers and paying for utilities.
CBA general manager in charge of new business Eric Muriuki said the mobile banking app eliminates the need for visiting a physical branch for any of the core banking services.
“The banking model is broken and we want to change that,” said Mr Muriuki yesterday, highlighting the quest by CBA to shift from brick and mortar-oriented banking to one that runs on digital channels. “Loop breaks down the bullet-proof glass between the customer and the bank.
“It is the alternative to the way things have been done.”
CBA chief executive Jeremy Ngunze allayed fears that the introduction of digital platform would lead to bank branch closures, saying it would complement existing services.