With the establishment of newly-founded bob Finance AG, kiosk magnate Valora has made its entry into the online lending industry.
The retailer has partnered with licensed bank Glarner Kantonalbank GLKB to achieve this entry. The Glarner Kantonalbank has already made a name for itself through its online financial services, and gathered valuable experience in the fields of online mortgages (Hypomat), online savings accounts (Kontomat), online life insurance (Risikomat) and online asset management (Investomat).
bob Finance has made its online debut with the bob money loan service. Loans as low as 1000 francs and as high as 80,000 francs are offered, and loan terms of between 6 months and 120 months are available. Loan increases and loan terminations are also possible.
Loans are primarily provided online. Important documents relating to a loan can be viewed online via the “MyCockpit” feature.
At 8.9%, the interest rate is somewhat lower than those charged by several major banks, and sits at about mid-point compared to current online offers.
Like other Swiss lenders on the Net, bob money promotes itself as a provider of instant loans, which are loans provided within 7 days after an application is accepted. Swiss consumer protection law forbids the provision of loans within fewer than 7 days. Loans from bob money cannot be received in cash, but are transferred into your bank account.
For the time being, loans will be provided exclusively online. The potential value add of Valora’s countrywide network of kiosks has so far been limited to advertising. That could change with the addition of other financial services which the service provider is aiming to launch.