When Brett Van Aswegen took over as CEO of Wonga South Africa (wonga.co.za), he faced a daunting task. The online lender, one of the leading pioneers in fintech, was grappling with the looming threat of potential closure.
“We had to acknowledge both our successes and missteps,” Van Aswegen (who will subsequently be referred to as VA for short in this piece) said. While Wonga’s original team had made errors that damaged the brand in the UK, they had also created a ground-breaking paperless, real-time loan application system.
VA’s first challenge came on day one when an inspector from the National Credit Regulator arrived, intent on shutting down Wonga’s operations. Instead of becoming defensive, VA took a proactive approach.
“We proposed retrospective loan affordability checks, something unprecedented in the industry,” he explained. This willingness to work with regulators helped build trust. Within three weeks, Wonga had implemented all required changes, even though it meant cutting revenue by two-thirds.
With immediate regulatory concerns addressed, Wonga South Africa turned its focus to understanding its customers better. The company conducted extensive product surveys and focus groups to shape its strategy and redefine its brand purpose.
“Our motivation wasn’t driven by shareholder profits,” VA said. “We wanted to create value for South Africa and solve real problems for our customers.”
This shift in focus led to significant changes in Wonga’s business model as a diligent disruptor. The company moved away from traditional payday loans to short-term personal loans, giving customers more time and more flexibility with repayments. It also reduced its reliance on heavy advertising, prioritizing a more relevant and sustainable product.
These changes required a complete rebuild of Wonga’s platform. When the Dublin-based Wonga engineering team was disbanded, VA had to assemble a South African team to redesign the platform and launch new products within two years.
By March 2018, the first campaign with the revamped offering launched, tripling application volumes in the first month. But just as things were looking up, the UK group entered administration, cutting off funding entirely.
“We faced a significant liquidity crisis just as our new product was gaining traction,” VA recalled. Over the next 16 months, he navigated a complex process to save the business, eventually leading a local management buyout in December 2019.
Now, VA is focused on Wonga’s future. A key opportunity lies in financial inclusion. In South Africa, about 40% of adults rely on informal credit markets, often turning to loan sharks.
“We aim to help this excluded segment gain access to safer and more sustainable credit,” VA explained. Wonga plans to use alternative data sources and machine learning to make credit decisions for those without established credit records.
Wonga’s transformation has been about more than just survival. By focusing on purpose before profit and driving financial inclusion, the company has positioned itself for long-term success in the fintech space.
“Our journey reaffirms our commitment to providing valuable financial services,” VA said. “We’re not just another micro-lender. We’re working to solve real problems and create a more financially inclusive South Africa.”
