Brett Van Aswegen is best known for his pivotal role in saving South African fintech Wonga from looming collapse almost a decade ago. Today we’re exploring some of Brett’s compelling insights into successful fintech management.
Purpose before Profit
I’ve always emphasized the importance of purpose before profit. Profit, to me, is an outcome of fulfilling a clear and meaningful purpose. For example, the old Wonga (before I took over) chased profit at all costs, which ultimately led to its downfall. I define myself as a conscious capitalist, mindful of the full ecosystem in which I operate. It’s essential to be purposeful in actions, ensuring that the problems we solve are for our customers first, providing long-term value rather than short-term fixes. If we solve customer problems, we will always have customers.
Focus On a Customer-Centric Approach
Wonga’s marketing strategy is based on attraction. We don’t engage in outbound marketing or telesales. i.e. don’t try to sell someone on your value before they’re ready to hear it. Instead, we aim to be present and relevant when customers search for a short-term loan, addressing their needs at the moment they arise. This approach ensures we provide clear value by solving customer problems effectively. Ensure you solve that problem extremely well (ideally better than anyone else can). This can mean many things, being faster, more convenient or just cheaper.
This approach carries into our marketing strategies, as we’re a purely digital business it was essential that we became masters of this sphere. We have crafted hyper-specific campaigns across the digital spectrum to be visible to customers the moment they need us. This not only allows us to better connect with customers at the right stage of the buying cycle but it also becomes a much more cost-effective strategy compared broad out-bound campaigns.
Balance All Stakeholder Interests with Purposeful Actions
A businesses broader purpose extends to customers, shareholders, regulators, and employees. In Wonga’s case, yes, we need to be profitable, but we also need to work constructively with regulators to avoid being regulated right out of the market. Keeping employees happy and motivated is equally crucial as they are the engine of our service. Balancing these interests creates a sustainable business model.
Reconciling my personal need for meaningful work with profitability took time at Wonga but practicing the concept of purpose before profit breeds sustainability. I don’t worry about Wonga’s future survival because our practices ensure long-term viability.
Fulfilling customer needs, complying with regulations, and making a profit keeps all stakeholders satisfied. This balanced approach might mean short-term profitability isn’t maximized, but it builds a sustainable business with longevity, aligning with my ethics and credibility.
The Importance of Strategic Partnerships
The secret to successful partnerships lies in mutual benefit. Through my career, I’ve seen one-sided relationships fail, especially when companies exploit local producers to maximize profit. I believe in respecting and valuing our partners' expertise. Treating them as extensions of our business ensures long-term success. Squeezing partners for short-term gains jeopardizes future collaboration. Instead, we should focus on strategic partnerships that create value for both parties.
However if you think you can do something better internally that your partner – go for it but if that’s not the case, spend time reflecting on the specific values those partnerships bring and give them the respect they deserve. This applies to all manner of partnerships, even the most difficult ones.
