Canadians aged 18-35 years are responsible with their finances and want
faster, online access to capital
TORONTO, Dec. 3, 2013 /CNW/ - A new survey by Wonga Canada reveals that
young Canadians (aged 18-35 years old) - many of whom interact, engage,
and live online - expect their financial and borrowing institutions to
transform how services are delivered to them. Speed, transparency,
online and mobile access are some of the expectations held among young
Canadians, according to the first survey of its kind conducted by
"This is a generation that lives life on-line and on their terms," said
Mark Ruddock, CEO of Wonga Canada. "Technology is transforming the way
they expect to access financial resources and the way they want to
engage with their financial institutions."
According to the survey, this generation places an extremely high
priority on getting and staying out of debt (87%) but the vast majority
believes that most borrowing agencies and financial institutions aren't
really trying to help them do so. Seventy-nine per cent say that
lenders want them to pay as much interest as possible, for as long as
possible. They also believe there are many hidden costs associated with
"Young people don't want rigid one-size-fits-all products. The
generation that buys individual songs and not whole albums expects
greater choice and flexibility in their financial products too."
continued Ruddock, "They also expect lenders to be open and transparent
about the true costs of borrowing, while providing access to their cash
more quickly through various on-line channels, including their
smartphone. This is a wake-up call to institutions that haven't yet
changed the way they operate." Survey respondents also said that while
large unexpected expenses are of concern (82%), over half (56%) did not
find the total cost of taking a short-term loan transparent and clear.
"People want fairness and transparency from lenders" said Mr. Ruddock
"They also want control over how much they borrow (down to the dollar),
and for how long they want to borrow for (down to the day)."
"At Wonga, we're trying to live up to these expectations. Rather than
charging a fixed fee for short-term loans, we only charge the customer
for the days they have the cash, and we let them choose exactly how
long they want the money for, from 1 - 45 days." said Ruddock, "For
example, a few days ago a customer took out a $400 loan on a Saturday,
he had the money in his account within one hour and he paid it back the
following Friday; the total cost of the loan was $17, a fraction of the
cost of a typical short term loan which charges a fixed fee of $21 per
$100 borrowed (or a total of $84 in this case) regardless of how long
the customer needs the money. Canadians deserve access to this type of
low cost flexible loan."
Two thirds of those surveyed also said their ideal process for securing
a loan was not available to them. In fact, the most common plan young
Canadians have for dealing with unexpected expenses is to turn to
family or friends for the money - the top option for almost one-half of
respondents. Another one of Wonga's customers couldn't believe how
simple it was to access emergency funds when his car broke down and he
was unable to get to work. "He was at the auto repair shop, looking at
a quote to fix his car that he knew he couldn't cover" explained
Ruddock "So he took out his tablet, logged onto the Wonga website,
filled out the application and showed the instant approval to the
mechanic who began the repairs confident that the money was on its
The trend in financial responsibility also translates over to pay day
loan users. Of those surveyed, 12 per cent of young Canadians indicate
they have taken a loan from a pay day loan company before, while 8 per
cent indicated have done so within the last year. Of these individuals,
82 per cent have taken a loan three times or less, 68 per cent two
times or fewer, while 43 per cent had taken a loan once in the past
year. Nearly all pay day loan users (82%) reported they were able to
pay back the loan within a month, and over one-third within a week.
"The reality of life is that sudden unexpected expenses are likely to
arise," said Ruddock. "Our survey results reveal that within the past
year, more than one-half of young Canadians mentioned having had at
least one unexpected large expense that they had difficulty paying.
Car/home repairs and health/medical expenses account for one-half of
these unexpected expenses, with car repairs being the most prevalent."
About this Research
This report is based on an online survey conducted by BrandSpark
International, a leading brand, marketing and product innovation
research company. Survey responses were collected from 1,003 young
Canadians (outside of Quebec) aged 18-35 years, with the sample
reflective of the general population in terms of age distribution,
gender, and geography. The survey was conducted between March 28 and
April 5, 2013.
About Wonga Canada Inc.
Wonga Canada Inc. is a ground-breaking digital finance company founded
in the UK and headquartered in Toronto, Ontario. Since 2011, we have
been transforming the Canadian credit market by offering small,
short-term online loans for consumers.
Our mission at Wonga Canada is to solve people's occasional short-term
and urgent cash flow problems with an equally short-term and
responsible lending solution. We remove the complexity and
inflexibility consumers face whenever they need to borrow cash in a
hurry and offer greater speed, convenience and flexibility than any
other financial institution or borrower. We are committed to
responsible lending and use our fully automated and real-time risk
technology, which processes thousands of pieces of data to make instant
and objective lending decisions in seconds, 24/7. Our technology also
means we can offer unrivalled speed, convenience and control to our
Wonga Canada is part of the Wonga family of companies, which currently
serves consumers and businesses across the UK and South Africa.
SOURCE: Wonga Canada Inc.
For further information:
Phone number: 416 645 8207