Non-bank unveils consumer campaign, opportunities for brokers

by Julia Corderoy21 May 2015
Non-bank lender Pepper has launched a new consumer directed campaign, Absolutely Positively Pepper, to increase the profile of specialist lending.

The non-bank says third party mortgage brokers and white label partners will continue to remain its primary distribution channel, and the launch of the Absolutely Positively Pepper campaign represents an exciting opportunity to educate borrowers and promote brokers. 

The campaign has been launched in response to independent research Pepper conducted in 2014, in partnership with Fifth Dimension Research and Consulting, which found that as many as six in 10 potential non-conforming or specialist borrowers do not end up receiving a home loan.
 
“Six out of 10 borrowers that are self-employed, have credit impairment or irregular income do not end up receiving a loan. That is a very high number which we don’t think is fair, and we want to change that,” Director of sales and distribution for Pepper, Mario Rehayem said.
 
In addition, of the six in 10 non-conforming borrowers who do not end up getting a loan, the research found 62% did apply for a traditional loan but were not approved, and 38% never submitted an application.
 
“Buying your own home is still the great Australian dream today just as it was 40 or 50 years ago, but with housing affordability an increasing issue, that can seem out of reach to many,” Rehayem said.

“Our research found that borrowers who do go through a broker are more likely to complete the home loan process, and therefore to create more demand for specialist lending we have increased the scope and reach of our specialist lending education programs to help potential customers understand what a specialist loan can offer them.”

The non-bank says brokers and white label mortgage partners will continue to serve as their most important partners in connecting Australians who can’t receive finance from traditional lenders with a home loan.
 
“We remain more committed than ever to providing tools to our broker network to help them explain the Pepper story to their customers so that when they position one of our specialist loans to a customer, they’re not met with a ‘Pepper who?’ response,” Rehayem said.

“We will also remain committed to helping brokers continue to identify new business and refer qualified leads obtained through the campaign to our preferred broker program – after all, 95% of Pepper loans are written by mortgage brokers.”
 
“It demonstrates how serious Pepper is about educating both brokers and consumers about specialist lending.”

Pepper has also announced a brand makeover. Rehayem says brokers will notice a change in the lender’s visual brand through a range of communications channels including advertising, eDMs, and its new website.
 
“Brokers will see the evolution of our brand through a freshened up logo and positioning within a range of communications touch points, and they will see our new advertising campaign across print and digital media. 

“We have also brought to life a new website, featuring an online help centre and education hub for brokers to access and share with their clients. We have also developed a new brochure to help brokers have a conversation about Pepper and specialist loans with prospective borrowers.”
 

COMMENTS

  • by Spring-A 21/05/2015 2:39:12 PM

    Where would one find this 'Absolutely Positively' campaign wherein Pepper says it is "an exciting opportunity to educate borrowers and promote brokers"? It's not on Pepper's website and their Facebook page just promotes winning tickets to a football match.

    Can one assume that this 'campaign' is a reaction to my post yesterday regarding white labeling and misleading and deceptive conduct?

    While you are developing your education campaign Pepper, you might want to educate borrowers as to the meanings of words like "non-bank Lender' / Mortgage Manager / Trustee / Originator / non-ADI / Trust Manager / Master Servicer, Lender, Credit Provider,who these persons are in your lending model, and which party is an agent of who.

    ASIC's money smart website attempts to educate borrowers by suggesting that they 'know who their lender is'.

    When Companies like Pepper (inter alia) state that they are non-bank Lenders it creates confusion and may mislead borrowers.

    I look forward to reading the information that Pepper includes in their''Absolutely Positively' campaign.

    Hopefully it won't take them long to launch it!