What do customers most often need a loan for?

The claim says “Your Swiss bank”. Is Cembra a typical Swiss bank at all?

Peter Schnellman: Yes and no. We are a typical Swiss bank in that we are reliable and rock solid, with a tradition going back more than 100 years and branches throughout Switzerland. But we are also different because we do not manage assets like a typical Swiss bank, but above all offer financing solutions for all life situations, such as personal loans, car leasing or credit cards, and our customers can shop and pay in stores as well as online. Make shop as easy as possible.

Does the typical Cembra customer exist?

no Our clientele is a reflection of the Swiss population, i.e. a very broad mix.

SThey offer solutions for all situations in life. What does that mean in detail?

Our credit cards make everyday shopping easy, we use a personal loan to finance training or equipment for the new apartment, we help with the financing of the new electric car and arrange the appropriate insurance. If you have some money on the side, we also offer savings options such as the medium-term notes or the deposit account. We accompany our customers through their different phases of life.

Loans are an important business. You’ve been dealing with this for a very long time. What do you find most exciting about it?

First of all, it is a nice job, because we can help people to fulfill their wishes and achieve their goals. For some it is even about securing their livelihood, for example if they need money for a car that they need for their work. At the same time, the job is also very challenging. It is important to check the individual situation when applying for a loan and then to find the right solution. This should give customers the greatest possible flexibility, but it must also comply with the legal and our internal requirements. Sometimes this also means that we have to say no because the individual budget check shows that the loan may not be affordable for the applicant. Responsible lending is our top priority. There is always a trade-off between accepting and rejecting a loan. I find all of this exciting. Our low loan default rate shows that we are doing a good job here.

Cembra – leader in financial products

Cembra is a leading Swiss provider of financing solutions and services. Its range of products includes consumer credit products such as personal and vehicle financing, credit cards, related insurance distribution and bill financing, deposits and investment products. The bank has over a million customers and employs around 1,000 people from 42 countries. The head office is in Zurich, with branches in all parts of Switzerland.

Cembra is a leading Swiss provider of financing solutions and services. Its range of products includes consumer credit products such as personal and vehicle financing, credit cards, related insurance distribution and bill financing, deposits and investment products. The bank has over a million customers and employs around 1,000 people from 42 countries. The head office is in Zurich, with branches in all parts of Switzerland.

What do your customers most often need credit for?

We do not ask customers why they are applying for a loan. You are also not obliged to name it. However, we know from experience that classic personal loans are often about a car, a change in your living situation or further training.

What would you take out a loan for yourself?

I once took out a loan to pursue professional development. That was a very good investment. But I would also use a loan for a car or a new home, so if it’s a real investment where you spend a larger sum of money on something that you’ve had for a long time.

As mentioned, it is a business that also means an obligation for the customer. That can put pressure on you. How does Cembra provide security in this regard?

On the one hand, we calculate the financing with the customer and adjust the loan amount and the fixed rate to his circumstances. This gives him the certainty that he can repay his loan within the agreed term. In uncertain times like the one we are in now, there are of course worries or even fears about the future: how will the global economy fare, how secure is my job? Here we can offer additional security with insurance solutions.

What do you insure?

We do not offer insurance ourselves, but mediate it. Installment insurance is about securing the fixed loan or leasing installments in the event of a stroke of fate such as illness, accident, disability or unemployment through no fault of your own. With the “Payment Protect” offer, we offer cover for the credit card balance in an emergency. For example, some of the credit cards we issue include purchase insurance, a best price guarantee or other insurance. There is also insurance for card loss, travel and the car.

Is there such a thing as the three golden credit tips you can give?

Most importantly, don’t take out credit for short-term activities or impulse purchases. For example, someone wanted to finance a huge fireworks display. We advise against this. The fireworks are gone within half an hour, but you still have to pay for them for months. Rather make investments in long-lasting things and in the future, such as a car, home furnishings or for training. Another important point is the topic of the monthly rate – that you really include this in the budget, like the rent or the health insurance. And last but not least: Go to an established financial service provider. There are always dubious offers that lure customers with different methods. But there it says: hands off.

They regularly launch new offers. The Certo has been around since July! Credit card. What is particularly innovative about the new offer?

The Certo! One credit card is free and combines simplicity with individuality. It offers a 1 percent money back bonus at three favorite merchants and 0.33 percent for all other payments. Transactions and card data can be checked via the link to the Cembra app, you always have an overview of your savings and can manage your favorite retailers. The Certo! The card can also be used worldwide and meets the highest security standards. Thanks to these advantages, the card is very much appreciated by many customers. This makes them unique in this form and we are particularly proud of them.

What are you pulling out your Certo for! Credit card most common?

I no longer have a wallet or cash, so I need the card for almost all payment transactions.

Why are credit cards still needed in physical form today? Codes are often all that is needed on the Internet, and in stores there are solutions via smartphones.

That’s true, but the use of credit cards is as individual as our customers. The “Swiss Payment Monitor” study shows that the credit card is still a very important means of payment, whether for online shopping or in stores. In addition, mobile payment is not yet possible everywhere, although we have come a long way in Switzerland in this respect.

The card body of the new Certo! Map is made from 100 percent recycled plastic. What role does sustainability generally play in your company?

A very big one. Our understanding of sustainability goes far beyond the recycled material in our credit cards. We want to make an active contribution to a sustainable future and set ourselves high standards in this area. This applies to all areas of sustainability, i.e. from economic sustainability and ecology to the perception of our responsibility in social and ethical issues.

Can you give a few examples?

We have been using electricity from renewable sources to maintain our business premises since 2016. We are one of the leading providers of financing for electric cars and our field staff are increasingly driving electric cars. We also want to give something back to society and have been supporting the charitable commitment of our employees for over 15 years with our Cembra Volunteers initiative and are a partner of various charitable organizations. Our commitment to so-called ESG issues is recognized and we receive very good ratings from the relevant rating agencies.

Let’s look into the future: How will the issues of money, payment and banking change in the future?

I can still remember when I started in this industry. People came to us at the counter, withdrew 25,000 francs and took it to the car dealer. This has changed massively in recent years due to digitization – and will continue to change. Customers are becoming more and more independent. Self-service and “mobile first” are the keywords, which is why it is important to develop solutions that are as simple, intuitive and customizable as possible and tailored to the individual needs of customers. The technological landscape will constantly be renewed, so we always have to be up to date in order to be able to offer added value. That’s why I’m very positive about the future. I think the longer it gets, the more exciting it gets. One thing, however, will not change as a result of increasing digitization: the need for products such as loans or leasing will remain high in our consumer world. And we are the specialists for this, digital and personal.

Calculation example: For a cash loan of CHF 10,000 with a contract period of 12 months and an effective annual interest rate of between 7.95% and 9.95%, the total costs are between CHF 420.80 and CHF 523.40. Lender is Cembra Money Bank AG based in Zurich. Lending is prohibited if it leads to over-indebtedness of the consumer (Art. 3 UWG).