In an industry that is not noted for its transparency, Errol Damelin
, CEO and co-founder, was quick to explain how Wonga operates, following the release of its first annual report and accounts for 2012
Despite being a private company, Damelin made it clear that Wonga operates like a public company. He provided a detailed explanation into how Wonga makes its money and how it acts as a “good corporate citizen.”
By communicating its strategy and profitability, Wonga is living up to its values of openness and transparency.Daily Telegraph 03 Sep 2013
Following the first public release of Wonga’s annual accounts, CEO Errol Damelin explained that the company’s almost 1 million customers represented only a third of those who actually applied for short term loans. As a responsible lender, Wonga
only lends to people who can afford to borrow and therefore turns down many first time loan applicants. Most of Wonga’s customers, whom Damelin dubbed the “Facebook generation,” use Wonga to provide a short term fix, rather than having to pay unauthorised overdraft charges.
Damelin explained that Wonga serves customers who want to take out a loan and know that they can repay it in three days, in just the same way they want to buy an item on iTunes.
Wonga’s annual accounts for 2012 showed that company lending increased by 68 percent, with the number of UK loans reaching nearly 4 million.James Quinn, Financial Editor of the Daily Telegraph, 03 Sep 2013
Image courtesy of Pixomar / FreeDigitalPhotos.net
Wonga CEO Errol Damelin has called for better regulation of the consumer lending sector and of the wider financial services industry within the United Kingdom. The Office of Fair Trading (OFT) is currently responsible for regulating the industry. However, from 2014, responsibility for consumer lending companies will move to the Financial Conduct Authority (FCA), a change Errol Damelin welcomes.
Tougher regulation will mean that the industry can move forward and enable Wonga and other likeminded companies to continue innovating the world of digital finance. READ THE FULL ARTICLE...
The award winning South African entrepreneur, Errol Damelin is backed by some of the world’s leading Venture Capitalists like Balderton and Greylock. As the co-founder of Wonga, Errol is at the fore-front of the consumer credit revolution in the United Kingdom. With hundreds of thousands of customers after only a few operational years, Wonga and Errol Damelin
have taken the market by storm. Errol is passionate about the service they provide and boasts an ethos of responsible lending and absolute transparency. After growing up in South Africa, Errol Damelin now resides in London.
Errol Damelin is convinced that Wonga are heading to be a British technology success tale and in a recent interview with the UK’s daily newspaper The Sun
, he affirms that the British public should be proud of the company. With over a million customers using Wonga’s online service for cash at around 3 times per year, Damelin testifies that their short-term cash availability is helping regular people live their lives, the way that they want to live them.
| || |
As a successful entrepreneur and innovator, Errol Damelin has a set of strong opinions around the general pattern that entrepreneurial ventures take. Major companies like Skype, Google and PayPal are doing things fundamentally different and embracing speed and transparency as essential components to successful business.
Like these companies, Wonga is employing technology to achieve what was previously deemed impossible. The entrepreneur voiced his take on linear scalability and the importance of branding and how useful taking note of trends is. He explained how pivoting can positively impact on business when required. Errol Damelin believes
that smart people that have problem solving skills and are driven can achieve anything.