This is the insight behind Wonga etc. Automate the payday loans business, put a nice website on the front end to make it friendly and convenient, use clever technology to price default risk more accurately, then undercut the incumbents while still making plenty of money.
State intervention does not seem to be required to fix payday lending. Indeed, i would be apprehensive about a state enterprise taking on business which requires such sharp and tricky financial judgments to run effectively.
State intervention does not seem to be required to fix payday lending. Indeed, i would be apprehensive about a state enterprise taking on business which requires such sharp and tricky financial judgments to run effectively.