The oft-maligned payday loans lender Wonga has said that it has its eye on moving into the lucrative markets of savings and mortgages in the next phase of its development.
The head of the group, Errol Damelin, has admitted that the firm is keen to expand into the rest of financial services and extend the range of products it sells.
Mr Damelin said he is ‘impatient’ for Wonga to venture into new markets but said that in reality, it will take another 2-3 years before it is ready to do so.
As well as mortgages and savings, which Mr Damelin described as ‘inefficiently priced’ and ‘without good value,’ the payday lender hopes to take on the might of organisations such as Western Union.
Western Union is a secure money transfer programme which charges a fee to send funds to loved ones or other accounts held internationally. Mr Damelin said that charging individuals to send their own money overseas was ‘immoral’ and carried virtually ‘no risk.’ He said that Wonga hoped to help customers to view things differently.
Eyebrows have been raised in some quarters over the Wonga boss’ description of Western Union, as the payday lender has frequently been on the receiving end of similar criticism. But Mr Damelin continues to insist that Wonga, despite the opposition, is really the ‘good guy.’ He added that not a single bank in the UK had a comparable customer service rating and Wonga was simply providing an ‘alternative’ for those who had run out of options.
No details have been released yet about how Wonga intend to expand their operation, nor how they plan to intrude on the bubble Western Union have created. But with Mr Damelin comparing the operation to Amazon, it may not be too long before you start seeing the brand in many more places than before, much to the chagrin of its critics.