0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

Monzo testing high-cost short-term credit products

Monzo is exploring offering loans to the “Wonga segment” of the market, the challenger bank has confirmed.

In an announcement on the bank’s website, product manager Richard Cadman said the start-up wanted to make it easier for customers to apply for loans in a way “that’s fair and more transparent”.

 

Monzo stressed it would be seeking to provide credit to customers who otherwise have difficulty accessing traditional loan products.

 

“In the right circumstances, borrowing can be a useful way to manage your money. From unexpected emergency purchases to a big undertaking like buying a house, using the right kind of credit and managing it in the right way can help you do the things you want to do,” Cadman’s announcement said.

 

“We believe we can find an approach to lending that’s fair and more transparent. One that helps you feel better about borrowing, by designing products that help you stay in control.”

 

The move comes after Wonga, which was synonymous with the high-cost short-term credit sector, collapsed into administration in August. It had been inundated with historical compensation claims relating to loans issued before 2014, which had earlier caused it to seek £10m of emergency funds from its investors.

 

That round of funding only gained it a stay of execution, though, and Chris Laverty, Daniel Smith and Andrew Charters of Grant Thornton UK were appointed to conduct an orderly wind-down of Wonga.

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

CIVEA warns of bogus bailiffs

CIVEA warns of bogus bailiffs

FOS: Complaints about short-term loans more than double

FOS: Complaints about short-term loans more than double

Phone and internet customers to receive end-of-contract letters

Phone and internet customers to receive end-of-contract letters

Upcoming events

Car Finance Conference

Car Finance Awards

Collections & Vulnerability Summit

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group