Wage Day Advance put the shift down to four significant events, this included the loss of revenue and margin from the Wage Day Advance loan that was withdrawn and then relaunched following the new rate-cap criteria set by the Financial Conduct Authority (FCA). Additionally, the lender lost revenue from the FlexAdvance loan that was closed due to new regulation.
Furthermore, Wage Day Advance revealed it has invested a significant amount in regulation, where it put in place stronger credit, risk management and compliance teams. This was backed up by Wage Day Advance carrying out several initiatives to “provide comfort” to the FCA that it was complying with its threshold conditions.
Despite the losses, Philip John Anderson, director at Wage Day Advance, said: “Having established the foundations upon which the company will grow, with responsible lending at its heart, the business is now performing in line with management expectations. The future provides significant opportunities in the non-standard consumer credit market and with the backing of a strong and experienced parent company the management expect to be able to meet their medium-term plans.”
The lender expects to introduce new, innovative products this year. Wage Day Advance was granted full FCA authorisation on 20th February 2016.