Wonga eyes savings accounts

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.

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Representative APR is not the

Representative APR is not the same as traditional APR. These guys for instance run 365% annual interest but because of the bank lobbyist you think they are charging you +4000% per annum. I don't know who are the most silliest here, regulators, media who writes about these representative APR numbers as they were traditional typical APRs or punters who do not understand the terms.

Banks across the market charge us more if you go over the agreed overdraft limit, typically about £5 per day. Since they are bank, this is called overdraft and you idiots just swallow it because it's called overdraft.

Representative APR should not be presented to loans for less than 12 months, you regulators change it to Total Cost of Credit for short term loans. ARRGGGGG!!!

Because of their usury

Because of their usury interest rate accounts, they should be able to offer
world beating rates, on any savings accounts they may open.

I wonder!

Can we look forward to

Can we look forward to savings rates as eye-watering as their loans, i.e. 1,000% plus?

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