Wonga is a ‘force for good’, founder claims

Wonga is a ‘force for good’, founder claims

“It must solve the kind of occasional cash flow needs we cater for, which are often time sensitive and very short-term,” he writes.

“While we would be happy to apply our technology and expertise to help resolve these challenges, no single company can possibly have all the answers.”

Mr Damelin robustly defended Wonga’s business model – its core business offers loans for up to 30 days at an average annualised percentage rate of 5853pc .

“The view that alternative finance options are for those without options is far from the truth and just doesn’t cut it. We have more than a million customers ourselves and we can’t leave this debate only to a loud minority with scant experience of financial realities.”

He claimed Wonga’s average customer pays £1.50 a day in interest for short terms loans of up to a month.

However, he welcomed the threat of competition, saying: “We are a credit-based society and the widespread demand to borrow cash is not going to go away.”

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