Connect with us

Hi, what are you looking for?

Jewish Business News


British Regulators Say Wonga Isn’t Right


When Errol Damelin and Jonty Hurwitz founded the British loan site, both had startup experience, but were new to banking. The site wanted to get past the red tape and credit measures of traditional high street banks, and decided who would make the best people to lend to based on an algorithm based on 8, 000 pieces of information.

Wonga wanted to get past the staid approach of looking at a credit record and try to predict, based on certain online habits, who would be better recipients of loans than others. However, Wonga’s model is going to be replaced by a more traditional form of looking at credit history, as the Daily Telegraph reports, because Wonga’s metrics and methods won’t pass the scrutiny of British regulators. The new Wonga chairman, Andy Haste, who came on board to revamp the company and to keep it more in line with FCA regulations.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

James Quinn of the Telegraph writes, “I am not defending Wonga’s lending practices, but it seems clear, reading into the situation, that the company has become the enfant terrible of the financial services sector not because it necessarily did anything overly wrong, but because the goal posts had changed. When Damelin began the business, he could do what he wanted and quite literally, lend to whom he liked. Eight years on the business has become constricted and constrained by the very tentacles of an industry it was trying to disrupt.”



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.