Wonga Loans Reinventing Itself In New Relaunch.
It looks like Wonga Loans is trying to reinvent Itself.
When you mention the name “Wonga Loans” people will instantly think of payday type loans, although Wonga say their loans were never payday loans (but they were!) and also that their charges can be very high.
You might also think of the bad press they received, the money they had to refund to customers and also those silly and annoying characters they used in their adverts! At least the silly adverts have stopped for a while.
It’s no surprise then that Wonga want to reinvent themselves and change their image and re-launch another loan product. After a pre-tax loss of 37M in 2014, it was time to totally revamp their image and products.
So, now enters the new Wonga, but what has changed?
They say they will not be targeting the young and vulnerable of society and their new adverts would show real people in real life situations, to show that their loans are for all types of people in all situations.
Their website has also been overhauled with their application form being more detailed and more questions being asked regarding affordability of the applicant. There are clear instructions should there be any missed payments and there are also links to debt help should they be needed.
These are all due to new measures brought in by the Financial Conduct Authority and they are proving to be very helpful to anyone seeking a new payday type loan. The measures were long overdue to be honest, an example of which is the fact that Wonga’s APR before the new regulations was a massive 5,853% and now is in comparison, a smaller 1,509%.
Wonga has admitted that it had “lost its way” under the previous management and had considered changing the Wonga brand.
However, the Wonga name will be retained for the payday loan sector, but other longer-term, larger loans that are expected to be launched later in the year could be advertised under a different name.
Chris Bibby, marketing and brand director at Wonga, said it would have been “wrong to whitewash it and pretend to be someone else”.
However, Andy Milligan, of branding experts Caffeine, said that it would not be easy for Wonga to change its image with new adverts.
He said the company was carrying a lot of baggage as to whether it was trusted, and it would also face stiff competition from other players in the sector.