Non-bank celebrates near prime success

by Rebecca Pike01 Aug 2018

A non-bank is praising brokers as it announced it is on track for its best year yet across its entire product offering.

In particular, Pepper Money has seen exponential growth in its near prime segment, which it began in 2012.

Since 2012, Pepper has experienced an average growth rate of 30% per annum in near prime settlements and has serviced more than 11,600 customers equating to over $5billion in loan settlements.

Commenting on this achievement, Pepper Money’s CEO Australia Mario Rehayem said, “To put the $5billion worth of near prime settlements into context, 56% or $2.6b has been originated in the last 18 months.

“For a product class we launched to the market back in 2012, near prime is finally getting the recognition it deserves.”

Pepper said that market conditions today mirror those when the category was first launched. Increasingly, customers are finding themselves underserved by the big banks, at a time when they need banks the most.

Rehayem said, “This is real life lending we are talking about.  Many of these customers are on the cusp of prime and would have been willingly financed by a bank only 12 months ago. 

“These are people with one too many credit cards that they are finding difficult to repay, these are people participating in the gig economy, who don’t hold standard full-time employment or have supplementary income. These are people who have overcome a credit event and want to move forward.”

To celebrate this milestone, Pepper Money is launching its biggest promotion ever.

For the month of August only, Pepper is offering 50% off its Mortgage Risk Fee.

In urging brokers to take up this offer, Rehayem said “This offer comes at a perfect time, with more customers than ever before seeking a financial solution via Pepper’s near prime product. It’s an opportunity for brokers to save their customers thousands of dollars during the month of August.”

All applications lodged under this promotion must settle by 31 October 2018.

 

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