Connect with us

Hi, what are you looking for?

Jewish Business News

Business

British Regulators Say Wonga Isn’t Right

wonga

When Errol Damelin and Jonty Hurwitz founded the British loan site Wonga.com, 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.

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.”

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newsletter

Advertisement

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...

empty

The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

Business

Now Platika joins and elite club of $10 billion plus Israeli firms.

Travel

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...

Advertisement