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