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Wonga pioneered automated risk processing and an user-centric design 

The problem

Entering the Spanish market in 2012, Wonga faced the challenge of landing a market with little knowledge of their unique offering. The challenge was to educate a market that was unfamiliar with payday lending. The task involved introducing a complex, tech-driven financial product to a market unfamiliar with the concept of payday loans.

The solution

Wonga leveraged its technological capabilities to simplify the microloan process, making it more accessible for the average consumer. The company also initiated a comprehensive educational campaign to raise awareness about the benefits and responsibilities of microloans.

This is how it happened

In 2012, the Spanish market was largely unaware of payday loan products. Wonga faced the uphill task of educating consumers, investing heavily in TV ads. This strategy proved fruitful and set a precedent for future entrants like Vivus, who capitalised on Wonga's marketing playbook. During these formative years at iBerotech, observing these cases provided us with invaluable insights into what strategies were effective and what pitfalls to avoid.

The challenge: Introducing the concept of payday loans in Spain was a monumental task. The market was not only unfamiliar with the product but also sceptical of non-traditional lending methods. The challenge was to build trust and educate the market while also offering a service that met local needs.


The team: Wonga's team comprised experts in market research, consumer education, and risk management. The in-house team focused on adapting their automated risk processing technology for the Spanish market, while monitoring defaults, which were very high at the time.


The solution: Wonga launched a dual strategy. First, to simplify the microloan application process through their automated risk processing technology and user-friendly loan slider. Second, to initiate an educational campaign that included TV ads that would explain the product usage, and targeted social media ads, as well as informative content on YouTube.


The outcome: The educational campaign successfully raised awareness about the concept of microloans, while Wonga's user-friendly technology attracted first-time users. Within the first year, Wonga had processed thousands of loans, positioning itself as the favourite brand among users, as the concept of microloans started gaining acceptance in Spain.


The legacy: Wonga's entry into the Spanish market not only introduced a new financial product but also set a precedent for how to successfully launch a complex, tech-driven service in a market unfamiliar with the concept. It demonstrated the power of consumer education coupled with technological innovation.


Learn more:
If you're interested in how iBerotech can assist in introducing new financial products to the Spanish market, leveraging both technological innovation and consumer education, please contact us directly.
 

This case underscores the importance of market education when introducing a novel financial product. It also highlights how technology can be leveraged to simplify complex processes, making them accessible to consumers unfamiliar with such products.

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