Wonga eyes savings accounts
Short-term lender Wonga is considering a move into the savings market, according to chief executive Errol Damelin.
Speaking at an Albion Society event in London, Damelin says that the payday lending firm is considering offering more financial products than just short-term consumer credit, including online deposit-based savings accounts.
The chief executive believes that the financial services industry will experience the same ‘revolution’ that hit the media and telecoms business. He argues that the traditional model of high-street bank lending has become ‘bankrupt’, thus opening the way for technology-forward platforms such as Wonga.
Damelin adds: ‘We are thinking about the problems that people have, and then match the company’s capabilities to consumer needs that aren’t being filled. We’re thinking of different ways to move and save money.’
Wonga is not regulated by the Financial Services Authority (FSA), although it is licensed by the Office of Fair Trading. For it to offer deposit accounts however, it would have to be regulated by the FSA, something Damelin would like to see across the various online financial services platforms such as Wonga and social lending platform Zopa.