Tell us about … Cake for Banks

By Sophie Docx

The Cake cashback Reward program can also be integrated into existing banking apps of European banks. Why are we doing this and what does it mean for Cake?

We recently announced that the Cake cashbacks will also be available in Argenta’s app as of this summer. Thanks to Cake for Banks, existing banks can also integrate the Cake cashback Rewards into their app. Why are we doing this and what does this mean for Cake?

We ask Davy Kestens and Tom Claus, co-founders at Cake.

What exactly does the integration of the Cake cashback Rewards into the Argenta app mean? 

Tom: In practical terms, starting this summer, Argenta customers who explicitly choose to do so, will also be able to enjoy the same cashback Reward discounts as available in the Cake app. Even if they don’t have the Cake app installed. They will then simply pay with their Argenta account and will have the cashback Reward automatically refunded to their Argenta account.

So does it still make sense to install the Cake app?

Davy: Absolutely! Cake offers much more than just the cashback Rewards. First of all, the Cake app allows you to link accounts from different banks in one app. This can be 10 Argenta accounts, but just as well accounts from 10 different banks.
Cake then automatically analyzes all income and spending across all those different accounts, giving you a better view of what you’re spending money on. You’ll get automatically generated insights into spending categories, retailers and brands you spend the most on, how much you save and so on. Getting a grip on your budget starts with having a good overview.

Tom: In addition, the Cake cashback Rewards are just one way the app makes money.
Cake also distributes a portion of its revenue each month to all active users of the app. That revenue comes from selling reports and statistics to companies so they can better understand where consumers are spending their pennies. This is done completely anonymously of course, but since the aggregated data of all our usersis processed in this, we think they should get something for it. Their share of the cake, so to speak. Argenta is currently investigating the possibilities of providing this for their customers as well.

Argenta is the first bank to use the Cake for Banks solutions. Why do banks opt for this?

Davy: Banks are looking for ways they can offer their customers an extra service on top of their financial services. Consumers, on the other hand, are looking for ways to get their bank accounts profitable again now that interest rates on most current accounts are near zero. 

Tom: For banks that want to keep the focus on their core business of providing good financial services and selling banking products such as loans and insurance, this is an ideal solution. We unburden them completely. The implementation of the Cake cashbacks is technically relatively simple. And we take care of all contacts with the brands and companies offering cashbacks. We also handle the administrative and financial processing.

How will this impact the Cake app and Cake users?

Tom: For Cake users, this is really great news! 
By integrating into existing banking apps, Cake becomes even more interesting for companies. If companies want to promote a brand or product through a Cake cashback Reward they will now reach a much larger group of users. Not only the users of the Cake app, but also the users of the Argenta app who have indicated to also want to enjoy the cashbacks. And the more interesting Cake becomes for companies, the more cashbacks we will be able to offer in the future.

Davy: Cake for Banks, and in particular this first collaboration with Argenta, is also an acceleration of our business model. Cake is still a start-up. We launched only early 2020. We want to evolve to a viable business model as soon as possible. And demonstrate that our product works, that it has added value for consumers and businesses. This collaboration now gets us very close to that point. Once we are there, we can comfortably continue developing the app and adding more functionalities.

Tom: The impact on our team is limited because technically everything already exists. Only in terms of sales will we now have to, or rather, be allowed to, shift up a gear. As we now have a broader coverage, we will be recruiting additional sales people to ensure that we have an even bigger offering of cashbacks by summer. Not only in Flanders, but also in Wallonia and in the Netherlands.

What new features are planned for the app?

Davy: Our technical roadmap has been publicly available since we launched. Everyone can follow our progress and plans here. But also add their own ideas and suggestions or vote on ideas from others.
We work in a kind of harmonica model. We recently came out of a phase in which we released a lot of new functionalities. We are now optimizing and fine-tuning these to bring the app to a higher level.
Once that is done, new functionalities will be added such as the integration with Paypal and the addition of the meal voucher spend. 
Further down the line, more profound changes are planned such as comparing your own expenses with those of reference groups of Cake users.

So there is still a lot planned to make Cake even better!