By voicing a commitment to responsible lending and with openness around its charges and policies, Wonga has developed a well-known and trusted brand in the UK payday lending market since its launch in 2007. The company has successfully identified a market segment that was underserved by traditional lenders and has designed a flexible yet simple service to meet consumer needs.
Features and benefits
- Boost customer acquisition by understanding the consumer expectation for their personal and unique needs to be met by FS products and services.
- Improve consumer perceptions of a brand by recognizing the need to design transparent and straightforward products and services.
- Capitalize on the consumer demand for convenience and transparency by understanding how to meet these needs.
- Innovate effectively by gaining insight into how to target a specific consumer segment successfully.
The value of the UK payday lending market has increased significantly in recent years. In part this growth has been driven by payday lenders identifying and serving a viable market segment. This includes the increasing number of consumers who are no longer willing or able to borrow from banks and other established lenders.
Consumers increasingly expect financial services providers to deliver simple and transparent products and services. Trust plays an important role in developing long-term relationships between consumers and companies. Firms offering uncomplicated products and services in a transparent manner are likely to enjoy commercial success.
Consumers feel that there are numerous demands, both personal and business, on their time and as a result are looking for products and services which offer convenience. Wonga’s automated lending process meets this need and has enabled the lender to justify imposing higher fees on its loans in comparison to conventional lenders.
Your key questions answered
- Why do consumers consider simplicity and transparency to be vital in FS products and services?
- How can a new entrant build a well-known and trusted brand?
- Why are consumers prepared to pay a premium for factors such as convenience?
- How can FS providers stand out in a crowded marketplace?