NCBA Loop reinvents neobanking with embedded finance in Kenya
NCBA Loop reinvents neobanking with embedded finance in Kenya
Kenya’s digital banking sector is undergoing a transformation, and NCBA Loop is at the forefront of this revolution. Originally launched in 2017 as a digital-only bank, Loop is now pioneering embedded finance seamlessly integrating credit and payments into everyday transactions.
This shift aligns with global trends where financial services are embedded within commercial activities rather than operating as standalone products. Loop’s new model allows users to access credit at the point of purchase, eliminating the traditional separation between lending and payments. Instead of applying for a loan before making a transaction, credit becomes an automatic part of the payment process. This mirrors the success of Safaricom’s Fuliza overdraft service and the growing Buy Now, Pay Later (BNPL) market in Kenya.
NCBA Loop CEO Eric Muriuki explains that the move toward embedded finance is both a response to market trends and a strategic evolution. “We are both developing our solutions and observing trends here at home and in other parts of the world that we consider relevant,” he said in an interview with TechCabal.
Loop was one of Kenya’s earliest neobanks, but as competition intensified with players like Ecobank-backed Fingo, Branch MFB, Umba, and Payless entering the market, it became clear that digital banking alone was not enough. The company is now expanding beyond its initial neobanking model into a broader financial infrastructure that integrates payments and credit seamlessly.
“Payments and credit will not be two different businesses, particularly short-term credit, because short-term credit is typically used to pay for something,” Muriuki noted. “You see a bit more embedding of credit into payment journeys.”
Beyond consumer banking, Loop’s embedded finance approach is set to reshape corporate transactions, particularly in trade and commerce. Businesses importing goods, for example, can have a credit structure embedded into their payments, simplifying cross-border trade.
“If you want to pay a supplier in China for imported goods, that payment transaction can have a credit structure embedded into it,” Muriuki explained. This innovation could streamline supply chains and boost efficiency for businesses that rely on international transactions.
Loop’s shift reflects a broader evolution in the financial sector, where technology is breaking down traditional banking silos. With the rise of APIs and improved internet access, embedded finance is expanding into sectors such as agriculture, healthcare, and education.
Muriuki predicts that while traditional banks will remain vital—especially due to regulatory requirements—digital platforms will dominate consumer banking, particularly among younger, digitally native customers. Unlike previous generations who transitioned from physical banking to digital services, this new demographic begins its financial journey in the digital ecosystem.
For corporate clients, the impact will be even more profound. Businesses will maintain relationships with traditional banks, but their financial operations will be deeply integrated into digital platforms. “Corporates will remain in banking, but their value chain is firmly established on the digital platform side,” Muriuki said. “That line will never fully disappear because regulation will keep it in place.”
NCBA Loop’s transformation into an embedded finance platform signals a major shift in Kenya’s financial landscape. As banking services become more seamlessly integrated into digital commerce, the role of traditional financial institutions will evolve. The distinction between banks and fintech firms may blur, but regulation will ensure that banks remain a critical part of the system.
With embedded finance gaining traction, NCBA Loop is not just adapting to the future—it is helping shape it.
