Motivated by the love of solving complex problems in his childhood, Jody Baumgarten, CFO of Wonga, has successfully built a thriving career in the fintech space. He speaks about business, trends, hobbies and mental wellness.
Heading up a fast-paced Fintech company
Jody currently leads as CFO for the dynamic fintech company Wonga, where he maintains regulatory compliance and core systems to the highest industry standards.
Jody completed his articles with PwC and worked for Dubai World Holdings until an opportunity to join Wonga surfaced in 2011. In 2019, Jody and his two colleagues bought Wonga South Africa, as it was previously a subsidiary of the UK group.
Over the years, Jody has been responsible for many different divisions within Wonga. Some successfully and some with a little less enthusiasm. As CFO, he is currently responsible for the finance, treasury, collections and planning aspects of the business, and making sure that they have competent people on their team that can be trusted to apply themselves to their fullest.
‘I like to give people freedom and flexibility, allowing them to use their own initiative to figure things out and come up with their own solutions to complex issues. I avoid micro-managing people at all costs,’ says Jody.
Tell us more about Wonga in South Africa and what inspired you to co-found it?
Wonga Online is a South African online lender that was formed in 2019 by the executive team of the previous entity owned by the Wonga international group. The management team in South Africa recognised an opportunity to acquire the South African operations trading under the Wonga brand.
As co-founders, we were inspired to re-establish Wonga in South Africa because we saw a need in the market for a locally owned and managed business that could provide short-term bridging finance to customers who were facing short term financial challenges. We wanted to offer a service that was both accessible and responsible.
To achieve this, we have implemented a data-driven approach to ensure that our business is stable and sustainable, while still meeting our customers’ needs. We have focused on responsible lending practices, and we are committed to providing customers with transparent information about the costs and terms of our loans.
Overall, we believe that Wonga Online is making a positive contribution to the financial landscape in South Africa, and I am proud to be part of a team that is committed to responsible lending and financial inclusion.
Tell us how you manage a fast-growing fintech company and still enjoy life?
I am both a husband and father. I enjoy adventurous sports like open water swimming and mountain biking, with my most recent quest being my swim from Robben Island to Cape Town. I have completed challenges like Ironman, the Absa Cape Epic and a solo mountain bike ride across Rwanda.
I really love setting myself a physical challenge that seems out of reach, and then spending a couple of months training for it. With proper training and the right mental attitude, there is little that one cannot overcome.
For me, mental wellbeing is top priority as the demands of contemporary life can be exhausting with continual online connectivity. This has made it near impossible to take time off or to switch off completely. Therefore, it’s crucial that we maintain balance in our daily lives.
Managing the pressures of running a fast-growing fintech company is challenging. Outside of the office, I try to balance spending time with my young family and training for the next big sporting event that I enjoy. I can really get my mind off work when I’m riding my mountain bike or swimming across the bay.
I consistently strive for work excellence through results-focused output. This helps me focus on the end goal and helps build consistency.
Tell us what your thoughts are regarding trends in fintech?
After the pandemic, the acceptance of digital and uptake in online commerce has increased dramatically. More and more people are expressing a desire to carry out all of their activities online. Another emerging trend in fintech is that people are under financial stress as a result of inflation, increases in the repo rate and general increases in the cost of living.
Accounting tech platforms that are constantly evolving are automation and forecasting tools. I believe more and more areas of accountancy will be automated over the coming years, so getting a grip on technology is crucial.
How can one stay abreast with technology?
With so many developments in tech, it can be hard to keep up – however, at Wonga, we have built a great team of experts that keep us at the forefront of technology. The recent emergence of useable AI and machine learning are changing the credit space for the better, allowing the underbanked to enter the credit market, which helps drive financial inclusion. We have focused on a few critical capabilities and have taken on a rapid adoption approach, meaning we are able to integrate with specialists in various technology fields which allows us to focus on what we are really good at.
From a personal perspective, I follow a few technology publications and podcasts to keep up with the changes in the tech space, particularly from a data and credit point of view.
What is your message to younger self?
If I had to rewind a few years, I would have gotten more involved in some of the business opportunities that came my way. As much as these may have been riskier than the prospect of a guaranteed salary, the potential upside is massive. Back yourself!
What is your message to aspiring CAs?
My message to aspiring CAs is to consider the breadth of exposure to other areas in business besides traditional accounting; things have changed from what you might learn in formalised education over the years. You might be working on year-end financials one minute, and then working on a tech platform purchase the next.
Additionally, be open to learning from those who have accumulated years of experience and hold your opinions lightly. Be willing to learn.
