In South Africa, there is a perception that those applying for short term credit or unsecured loans do so as a result of needlessly overspending or spending more than they can truly afford. However, a new survey carried out by Wonga, has revealed a different reason.
After gathering information from more than twelve thousand of Wonga’s South African based customers, it has been revealed that the primary reason for people applying for short term loans is to cover unexpected expenditures. This includes things such as purchasing what people regard as essential household items and paying urgent bills, as well as covering medical expenses and school fees.
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.
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Dawn Capital has announced it has raised in excess of GBP63 million during the first close of its Capital II fund. Those contributing to the fund include the Future Technologies Fund in the UK and the European Investment Fund. Dawn Capital, whose existing portfolio includes Wonga.com and Mimecast, will use the fund for investment in new technology ventures in both Europe and Great Britain The recent first close was successful in a large part because of the firm's portfolio and the success of companies such as Wonga, which was founded by Errol Damelin in 2007 and that has gone on to become one of the world’s most innovative providers of short term financial solutions.
The iconic gates which used to greet Newcastle fans as they made their way to St James’ Park are to be returned to the club after being found on farmland belonging to life president Sir John Hall.
Members of the NUFC Fans United group had been eager to see the gates return to their rightful home for some time. After several meetings with club officials, new sponsors Wonga and the Magpie Group, which is owned by Sir John Hall, an agreement has been reached by all parties for work to begin restoring the gates.
Wonga has provided the necessary funding required to dig up the wrought iron gates from Sir John’s Northumberland farmland. Wonga will also make a financial contribution towards the construction of a specially designed frame which will assist engineers in transporting the gates to a dedicated workshop where the restoration process can begin. Once completed, it is anticipated that the new gates will be installed at the stadium prior to the start of the 2013/2014 Premier League campaign.
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.
The new service offered by Wonga is a "buy now and pay later" option that directly challenges the usual credit card offerings on retailers' websites. The PayLater service is now being offered directly through retail websites and gives the purchaser a new payment choice. Through Wonga, the buyer pays an initial upfront fee of seven percent, followed by the purchase price divided into three separate payments. The popular service is expected to be available on additional retail sites soon.
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.
Young companies in the financial field in London are breaking the mould and disrupting the status quo that was maintained by high-street lenders and banks. Pioneering companies like Wonga are growing exponentially. Wonga achieved a nearly 300 percent rise in net profit, with business increasing threefold, in only one year. This sort of success is inspiring workers in the financial services sector to take the plunge into entrepreneurship and cause further disorder to the traditional market. Entrepreneurs are thriving on technology; companies like TransferWise are actively undercutting banks with online currency transfer and exchange and wonga.com is using a fully automated system as chief decision maker for all loans.
A throng of start-ups are tackling areas of the financial sector throughout the United Kingdom. Online companies like the short-term loan provider Wonga and the wealth management service company Nutmeg are taking on the established banks with relative ease. This can be ascribed to the increasingly poor reputation banks are suffering lately as well as their reluctance to embrace modernisation. Wonga and its counterparts welcome technology and use it to the benefit of their customers. The preferred platform for conducting business is the internet; sites are compatible with mobile devices and social media is embraced, paving the way to the future of finance.