The claim says “Your Swiss bank”. Is Cembra a typical Swiss bank?
Peter Schnellman: Yes and no. We are a typical Swiss bank as we are reliable and robust, with a tradition dating back over 100 years and branches all over Switzerland. But we are also different because we do not manage assets like a typical Swiss bank, above all we offer financing solutions for all life situations such as personal loans, car rentals or credit cards, and our customers can also shop and pay in stores. Make shopping as easy as possible.
Do you have a typical Cembra customer?
no Our customers are a reflection of the Swiss population, so it is a very broad mix.
SThey offer solutions for all situations in life. What does this mean in detail?
Our credit cards facilitate everyday shopping, we use personal loans to finance training or equipment for a new flat, we help finance the new electric car and arrange the appropriate insurance. If you have some cash on the side, we also offer savings options such as medium-term promissory notes or savings accounts. We accompany our customers at different stages of their lives.
Loans are important business. You’ve been dealing with this for too long. What do you find most exciting about it?
First of all, it’s a good job because we can help people fulfill their wishes and achieve their goals. For some, it’s about making a living if they need money, for example, for a car they need for their business. At the same time, the job is very difficult. When applying for a loan it is important to check the individual situation and then find the right solution. This should give customers the greatest possible flexibility, but must also comply with our legal and internal requirements. Sometimes this also means that we have to say no because individual budget control indicates that the loan may not be affordable for the applicant. Responsible lending is our priority. There is always a balance between accepting and rejecting a loan. I find all this exciting. Our low loan default rate shows we’re doing a good job here.
What do your customers most need credit for?
We do not ask customers why they are applying for a loan. Also, you don’t have to give a name. However, we know from experience that classic personal loans are usually about a car, a change in your life situation or further education.
What loan would you take for yourself?
I once took a loan to pursue professional development. It was a very good investment. But I would also take out a loan for a car or a new home, if it’s a real investment where you’re spending a larger amount of money on something you’ve owned for a long time.
As stated, it is a business that also means an obligation for the customer. This can put pressure on you. How does Cembra ensure security in this regard?
On the one hand, we calculate the financing together with the customer and adjust the loan amount and fixed interest rate according to the customer’s situation. This assures him that he can repay the loan within the agreed time. In uncertain times like the one we are in right now, of course there are worries and even fears about the future: what will the global economy be like, 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 we mediate. Installment insurance is to secure fixed loan or leasing installments through no fault of your own as a result of fate, such as illness, accident, disability or unemployment. With the “Payment Protection” offer, we secure the credit card balance in case of emergency. For example, some of the credit cards we issue include purchase insurance, best price guarantee or other insurance. There is also insurance for card loss, travel and car.
Is there such a thing as three gold credit tips you can give?
Most importantly, do not take loans for short-term activities or impulse purchases. For example, someone wanted to finance a large fireworks display. We advise against this. Fireworks disappear in half an hour, but you still have to pay for them for months. Invest instead in long-lasting things and the future, such as a car, household goods, or education. Another important point is the monthly fee issue – you really need to factor this into the budget, like rent or health insurance. And finally: Go to an established financial service provider. There are always questionable offers that lure customers in different ways. But there it says: hands pull.
They regularly release new offers. Certo has been around since July! Credit card. What is particularly innovative about the new offer?
Certo! A credit card is free and combines simplicity with individuality. It offers a 1 percent cashback bonus at three favorite merchants and 0.33 percent for all other payouts. Transactions and card data can be controlled via the Cembra app link, you can always review your savings and manage your favorite retailers. Certo! The card can also be used worldwide and meets the highest security standards. Thanks to these advantages, the card is highly appreciated by many customers. This makes them unique in this form and we are particularly proud of them.
Why are you taking off your certo! Credit card most common?
I no longer have a wallet or money, so I need the card for almost all payment transactions.
Why are credit cards still physically needed today? Codes are often all that is needed on the Internet, and there are solutions via smartphones in stores.
That’s true, but credit card use is as individual as our customers. The “Swiss Payment Monitor” research shows that the credit card is still a very important payment tool, whether for online purchases or in stores. In addition, although we have come a long way in this regard in Switzerland, mobile payment is not yet possible everywhere.
The card body of the new Certo! The map is made from 100 percent recycled plastic. What role does sustainability play in your company in general?
A very big one. Our understanding of sustainability goes far beyond the recycled materials in our credit cards. We want to contribute actively to a sustainable future and set high standards for ourselves in this field. This applies to all areas of sustainability, from economic sustainability and ecology to our sense of responsibility in social and ethical issues.
Can you give a few examples?
Since 2016 we have been using electricity from renewable sources to protect our workplaces. We are one of the leading finance providers for electric cars, and our field staff are increasingly driving electric cars. We also want to contribute to the community, and with our Cembra Volunteers initiative we have supported the philanthropic commitment of our employees for over 15 years and are partners of various charities. Our commitment to so-called ESG issues is acknowledged and we receive very good marks from the relevant rating agencies.
Let’s look to the future: How will money, payments and banking issues change in the future?
I still remember when I started this industry. People came to us at the box office, took 25,000 francs and took them to the car dealer. This has changed and will continue to change drastically in recent years due to digitalisation. Customers are becoming more and more independent. Self-service and “mobile first” are keywords, so it’s important to develop solutions that are as simple, intuitive and customizable as possible and tailored to customers’ individual needs. The technological landscape will be constantly renewed, so we must always be up to date in order to offer added value. That’s why I have a very positive outlook on the future. I think the longer it takes, the more exciting it gets. But one thing will not change as a result of increased digitization: The need for products such as loans or leasing will continue to be high in our consumer world. And we are the digital and personal expert of it.
Calculation example: For a 10,000 CHF cash loan with a 12-month maturity and an annual effective interest rate between 7.95% and 9.95%, the total cost is between CHF 420.80 and CHF 523.40. The Lender is Zurich-based Cembra Money Bank AG. Lending is prohibited if it leads to excessive consumer borrowing (Article 3 UWG).