Wonga has gone, but the gig economy that made it necessary is still with us
The demand for Wonga-like payday lenders is only going to rise and rise. Blame the digital age and its emphasis on speed and flexibility in all things.
Wonga, which sank on Thursday under a mountain of compensation claims, is likely to rise from the ashes in a new guise and compete again with the many other financial firms offering instant loans at huge interest rates. The target market - that of people on low to average incomes who live from one micro-job to the next - is only going to get bigger. Wonga failed because it was too greedy and at times crossed the ethical line. Under a new management, a firm that plays it straight could still prosper.
Every year, more jobs that were once full-time and salaried are converted to being part-time and self-employed
Continue reading...