Brett van Aswegen on Navigating The Evolving Fintech Landscape

Brett van Aswegen, CEO of Wonga South Africa, shares insights on managing a fintech business through turbulent times. The veteran executive, who steered the company through a significant turnaround, offered a candid look at the challenges and opportunities in the digital lending space.

 

You’ve Been At The Helm Of Wonga SA For Eight Years Now. What’s The Key To Survival In The Fast-Paced Fintech World?

 

It’s all about focus. As a fintech, you can’t be good at everything. We’ve zeroed in on three core areas: our technology, data handling, and digital marketing. We acknowledge where we’re not experts and partner with others who excel in those areas. This approach has been crucial to our resilience.

 

How Has Your Digital Marketing Strategy Evolved Since You Took Over?

 

When I joined, our advertising was primarily above-the-line, broadcasting to South Africans en masse. We’ve completely pivoted to digital. It’s not just a channel for us; it’s our entire storefront. We’ve invested heavily in building a team of data analytics and technology-based marketing experts.

They’re constantly optimising every component of our digital presence, from PPC to organic search to social media.

 

That’s A Significant Shift. How Do You Measure The Success Of This Approach?

 

The beauty of digital is the real-time feedback. In my early career, we’d wait weeks or months to see response rates from mail campaigns. Now, we know within a day or two if something’s working. This rapid feedback loop allows us to create bespoke messaging, deliver it immediately, get results, and quickly adjust our strategy.

How Important Is It For A Fintech To Keep Its Tech Stack Current?

 

It’s absolutely critical. When we started our turnaround, we made the bold decision to completely replace our tech platform. The old Wonga technology was ground-breaking when it was built, but a decade later, we needed something that could do different things.

For example, we now offer a personal loan which offers much greatly flexibility in terms of volume and repayment. Our revamped products also adhere to increasingly sophisticated risk analysis to help protect consumers. We re-engineered what we thought the platform should be doing, focusing on what we wanted to be good at and where we wanted to partner with others.

 

That Sounds Like A Massive Undertaking. How Did You Manage Such A Significant Tech Overhaul?

 

It was a huge challenge. We had to hire a new team, re-engineer the platform, and rebuild it with a new product in mind. It took us just under two years to do all of that while simultaneously implementing a new strategy. But when we relaunched in early 2018, we saw our business transform overnight. In the first month, we tripled our application volumes.

 

Speaking Of Challenges, How Do You Approach Risk Management In The Digital Lending Space?

 

Data is key. We’re a highly data-driven digital business. Our approach to risk is dynamic and real-time. We’re constantly analysing performance metrics, from marketing campaigns to risk performance, on incredibly short time scales. This allows us to make quick adjustments and maintain a healthy balance between growth and risk.

 

Regulation Is Often A Hot Topic In Fintech. How Do You Navigate The Regulatory Landscape?

 

A: Proactive engagement is crucial. We maintain an open, candid relationship with regulators. When new regulations come in, we aim to implement them quickly, often ahead of schedule. We’ve even gone beyond requirements, offering restitution for past practices that might have been perceived negatively. This approach has turned us from a potential problem into a success story for regulators.

 

Looking Ahead, What Do You See As The Big Opportunity For Digital Lenders In South Africa?

 

Financial inclusion is the next frontier. About 40% of South African adults don’t have access to formal credit. We see a massive opportunity to provide safer, more sustainable credit options to this underserved market. Our goal is to be a bridge, helping people build credit records and eventually transition into the broader formal financial system.

 

Any Final Advice For Other Fintech Leaders?

 

Focus on solving real customer problems, not just chasing profit. Build partnerships that benefit both parties. And always keep an eye on the long game. In fintech, it’s easy to get caught up in short-term metrics, but building a sustainable business with longevity should be the ultimate goal. If you’re truly solving customer problems, you’ll always have a business.