NCBA LOOP is reshaping neobanking in Kenya.
The country’s digital banking landscape is evolving rapidly, and NCBA LOOP plays a significant role in this transformation.
Founded in 2017, this digital bank has shifted to a broader financial infrastructure model, integrating credit and payments directly into transactions.
This transition aligns with the global embedded finance movement, allowing financial services to integrate seamlessly into daily commercial activities.
With LOOP’s new model, users can take out loans and purchase products within the same transaction. This eliminates the traditional separation between credit and payments.
In other words, the need to apply for a loan before making a payment disappears, as the credit process is automatically embedded into the transaction. This system is similar to Safaricom’s M-PESA overdraft facility and the growing Buy Now, Pay Later (BNPL) trend in Kenya.
Additionally, LOOP has helped popularize neobanking in the country. Competitors such as Fingo, Branch MFB, Umba, and Payless have also emerged in this growing market.
LOOP’s move toward embedded financial services aligns with a broader trend where payments, credit, and insurance become deeply integrated into commercial transactions across industries.
APIs and improved internet access enable the creation of sector-specific financial solutions in agriculture, healthcare, and education.
LOOP CEO Eric Muriuki predicts that the distinction between neobanks and traditional banks will persist, but the gap will continue to narrow. He anticipates that a generation born in the digital age will reshape market dynamics.
Unlike older customers who transitioned from traditional banking to digital services, these users start their financial journey in the digital space. Instead of building a relationship with a single bank, they interact with multiple financial service providers through digital applications.
LOOP’s transformation highlights a broader shift in Kenya’s financial sector. As embedded finance continues to grow, the role of banks is changing—from standalone service providers to integrated financial infrastructures that power digital commerce.