Loaning is under pressure these days. However, a new bright lending initiative is emerging: Wonga.
Wonga is a London-based socially responsible lender doing business a totally other way: it provides simple instant mini loans through the Web. Technology makes the world move faster, and Wonga aims to bring that velocity to the world of financing.
Wonga makes loans of GBP 50 to GBP 200, all to be repaid within a month. Consumers who want to loan use a clever slider tool to gain an instant understanding of how much the loan will cost them in total. Check it out on their Web 2.0-like website. Within 60 minutes you will see the money in your bank account. Wonga aims to be a perfect alternative to credit card debt and bank overdrafts.
I’m curious how this will work out and how other lenders will react on this initiative. It’s interesting to see more and more services getting more and more flexible and web-focused. Focusing on these two aspects brings new interesting business opportunities.