Collapse of British payday loan provider Wonga seems warning for Aussie fintech vigilance

Collapse of British payday loan provider Wonga seems warning for Aussie fintech vigilance

The collapse of Wonga, certainly one of Britain’s many high-profile fintech loan providers, provides salient classes for Australia, which considers the united kingdom a template for economic technology policy and where tighter laws and regulations to guard susceptible clients from payday loan providers may actually have stalled.

Wonga, built around a slick software enabling clients to obtain costly loans via their cell phone, had been “notorious because of its exorbitant rates of interest and had been a toxic icon of Britain’s home financial obligation crisis”, stated The Guardian a week ago.

The payday lender “failed given that it had been too greedy as well as times crossed the ethical line”, it stated, quoting prominent UK financial columnist Martin Lewis, who described Wonga’s loans as “the break cocaine of financial obligation – unneeded, unwanted, unhelpful, destructive and addictive”.

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