UPDATE: The tariffs have been adjusted by the bank, and they can be read here. Charges not mentioned in the article have remained the same.

Continue reading the earlier story…

We all know what happened to NCBA’s neo bank Loop. But for housekeeping reasons, here is a summary: the lender revamped the platform fully. The old Loop app with its exciting blue/green colours was replaced by a new app with dull orange tones. While at it, Loop rearranged everything, from the straightforward button placement of the old app to a very complex, or messy regroup that needs a learning curve to grasp. Loop has also introduced a ton of new features (you can see them by just navigating around the app), some of which are not explained properly but are there, nonetheless.

To us, the app could have been done differently. The development team behind this rebuild could have taken a simpler approach, bearing in mind that users tend to love products they can easily use. At the same time, the older Loop app couldn’t have been discontinued. See what Equity did with Eazzy Banking Banking app and Equity Mobile, where customers are allowed to use both platforms as they are slowly transitioned to the latest app? It is what, we hope, Loop should have done.

There is also the case where Loop introduced some charges on the platform. Before the CBK approved lenders to do so at the start of the year, Loop was the only platform that allowed customers to move their money to mobile money wallets for free. It is why most people used the service, so when the charges were introduced, some people felt it was done in a bad light.

It also means that I&M Bank is the only lender that now allows free bank-to-mobile money transfers. This, by itself, is going to attract thousands of customers who just want to share money with their friends and family without incurring exorbitant charges, and that is something Loop should have considered before making the drastic overhaul move.

We have looked at the tariffs, and other charges on Loop, and what is clear is that the platform is encouraging people to move a large amount of money from the bank to mobile money wallets at a reduced fee. However, this is not good because it discourages other people (the majority of them) from performing low-value bank-to-mobile money transactions.

Here are the tariffs:

Amount in KESFee to mobile money in KES
50-1000
101-5000
501-100012
1001-150024
Above 150036

To be honest, it shouldn’t cost that much to send KES 1501 to a mobile money wallet, but I understand the reasoning behind it. Also, other banks have their tariffs spread out multiple amounts, which is also another way to do bank-to-mobile money charges.

Card charges

Physical cardKES 360
Virtual cardKES 120
Replacing physical cardKES 360
Replacing virtual cardKES 120

Card Payments

POS: Markup fee – International Transactions: 5 percent

ATM withdrawals

ATMFees in KES
Inter Switch90
Ken Switch60
NCBA36
VISA ATM (local and international)300

Loop to Loop charges

Amount in KESFee to Loop in KES
50-1000
101-5000
501-100012
1001-150024
Above 150036

Loop to bank via PesaLink

Amount in KESFee in KES
50-100FREE
Above 50160

Loop Cash in Cash Out

Branch depositFree
Deposit through a linked cardKES 60
Branch withdrawal of less than KES 40,000KES 420
Branch withdrawals above KES 40,000Free

Others

TransactionFee in KES
Loop to Loop in store till/QRFree
Loop to Loop billers36
Loop to mobile money/till fees- Buy GoodsFree
LOOP to Bank Via RTGS60
LOOP to Bank Via EFT60
LOOP to Discover Merchants Free
LOOP to Goals AccountFree
LOOP to LOOP InvestFree
Loop Invest – Break OptionFrom 70% of CBR Rate
Loop Invest – No Break OptionFrom 70% of CBR Rate
Loop OverdraftFacility fee– 2% Disbursed Amount, Insurance – 0.7% of Disbursed Amount, Excise duty – 20% of Facility Fee, Interest Rate – Risk Based Lending based on Term 14.5% PA – 17.5%PA, Insurance – 0.7% of Disbursed Amount
Loop LoanFacility fee– 2% Disbursed Amount, Insurance – 0.7% of Disbursed Amount, Excise duty – 20% of Facility Fee, Interest Rate – Risk Based Lending based on Term 14.5% PA – 17.5%PA, Insurance – 0.7% of Disbursed Amount
LOOP e-StatementFree
Loop printed statement 6 months and belowKES 105 per page
Loop statement older than 6 monthsKES 210 per page
Duplicate statementsKES 100 per page
Certifying statementsKES 105 per Page with a Maximum of KES 3,000