Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

OUTLOOK: Provident could be the latest Robin Hood in reverse

 

James Moore
Wednesday 26 February 2014 01:00 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Outlook Before wonga.com there was Provident Financial. Sadly it is still with us. Provvie's core business used to be providing small loans door to door at ruinous rates of interest, with payments collected weekly by a network of agents.

That's suffered. Its customer base has been cutting back, and younger borrowers who are refused by banks prefer to deal with Provvie's rivals via their smartphones.

But sadly this is not a business in the throes of a long-term decline. Not a bit of it. The credit cards issued by its Vanquis Bank have proved to be a remarkable success story. After the disaster that was Yes Car Credit and its spin-off of its overseas business it seems that Provvie has found a formula that actually works.

The City thinks so, the shares having doubled in value over the past year or so.

Did you think Wonga was the only company that could claim to be Robin Hood in reverse, squeezing money out of the poor to benefit the wealthy? Well, Provvie isn't quite there yet. But Little John in reverse? The performance of Vanquis over the past year certainly makes the firm a contender for that title.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in