Wonga has gone, but the gig economy that made it necessary is still with us

Lenders will continue to offer payday loans, because the number of people living precarious lives is still rising

The demand for Wonga-like payday lenders is only going to rise and rise. Blame the digital age and its emphasis on speed and flexibility in all things.

Wonga, which sank on Thursday under a mountain of compensation claims, is likely to rise from the ashes in a new guise and compete again with the many other financial firms offering instant loans at huge interest rates. The target market – that of people on low to average incomes who live from one micro-job to the next – is only going to get bigger. Wonga failed because it was too greedy and at times crossed the ethical line. Under a new management, a firm that plays it straight could still prosper.

Continue reading...

from The Guardian https://ift.tt/2MENc3n

No comments:

Post a Comment