Wonga Finance South Africa (Wonga) is a short term lender of unsecured credit, providing small loans to the South African public. Wonga was founded in the UK as a response to the needs of under-served, banked customers. Wonga expanded into other territories including Poland, Spain and South Africa. The company offers loans to maximum value of R 8,000 for up to 45 days, with first time borrowers being able to borrow up to R3 000. Fixed costs account for most of the fees levied, and interest rates are capped at 3% per month for the duration of the loan.
Following engagement with the regulator in 2015, Wonga went through a significant strategic review of its business, strengthening lending criteria and re-approaching the role it played in securing its clients’ financial wellbeing.
Core to Wonga’s offering is the customer, and the objective of providing them with support beyond basic financial products. Part of this is the launch of The Wonga Money Academy, a financial literacy education programme available to customers and the public alike. By helping South Africans become more financially literate Wonga believes that it is building a holistic service offering focused on financial confidence, rather than simply being a vendor of credit products.
The provision of credit facilities in South Africa is an increasingly important service, not least given the revised regulation governing consumer lending which has changed the industry in South Africa significantly in recent years. Wonga holds that its customer-centric approach goes beyond the letter, to the spirit of the law, as the company works to provide fairly priced credit products which respond to the needs and resources of the customer, conveniently and fairly.