Pepper Money celebrates 25 years of championing its niche

Despite a quarter century in market and navigating immense change, Pepper Money CEO Mario Rehayem said the company’s core values have remained unchanged.

The goal has always been to “fill the gaps” and support the types of borrowers that may be overlooked by the big banks.

This includes first-time buyers, investors, self-employed entrepreneurs, and anyone else with less traditional financial situations.

The fringe approach has helped Pepper to thrive amid competition and adversity.

“When Pepper Money was born, banks dominated the market, and many Australians had few options beyond them. We started on the fringes with bold ambitions: to open the doors for everyday Australians to access the financial products they needed,” Rehayem said.

Among the 570,000 borrowers serviced by Pepper, 64,000 are self-employed and 50,000 are specialist borrowers.

A major achievement at the non-bank was introducing near prime. This refers to the category of borrowers whose creditworthiness is not excellent but also not poor. They’re in the middle.

“Near prime was significant for us. Before we launched it, borrowers were either bank-standard or paying a huge premium for non-conforming products. We created a solution for those in between,” Rehayem said.

Broker partnerships have also been a cornerstone of Pepper’s success. Brokers have remained central to the lending model and systems have been continuously improved to make the relationship between the lender and its third-party partners smooth.

“We’re committed to continuous improvement and delivering the X factor for our customers, partners and people. Our focus remains on closing the gap in financial inclusion, ensuring that all Australians have access to the lending solutions they need,” Rehayem said.

“Our goal is to stay trusted and humble while expanding financial inclusion. In the years ahead, we’ll broaden our products, reach untapped markets and continue being known for trust, innovation and helping people succeed.”

[Related: Tech investment driving strong growth at Pepper Money]

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

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