Sydney, 20 June 2016 – Concluding on Friday, Pepper Money’s (ASX:PEP) latest national Insights Roadshow series revealed the significant untapped opportunities that exist within the non-conforming borrower market.
The Insight Roadshows, which were held in Adelaide, Perth, Brisbane, Melbourne and Sydney, saw over 1000 brokers, and small and large aggregators convene to hear about the scope of non-conforming lending and the opportunities this presents for their business, as well as to better understand these under-served customer segments in their local areas.
Built on 18 months of extensive research conducted by Pepper Money, Equifax, Dun & Bradstreet and Fifth Dimension, the data showed that six out of 10 home loan customers who are rejected by prime lenders around Australia are eligible for alternative loans.
Mario Rehayem, Pepper Money’s Director of Sales and Distribution, said against the backdrop of a challenging industry environment, it was vital for brokers to understand the markets available to them and be clear on customer needs.
“A lot of brokers were surprised at the significant opportunities that non-conforming borrowers present in their own backyard. Customers who fall outside the eligibility of prime lenders shouldn’t be overlooked and as a provider of non-conforming loans, we want to ensure that our brokers understand the alternative loan options for these customers,” he said.
Mr Rehayem also provided a detailed profile of key market segments that are missing out on loans from prime lenders.
“There are a range of reasons why customers can fall outside the eligibility of prime lenders. Some of these customers may have qualified for a prime loan yesterday and because of a tweak to a lender’s algorithm find they are no longer eligible. If they understand the alternative products available in the market, Brokers have a real chance of helping to find a solution for these customers.”
Close to 100 per cent of attendees at this year’s roadshows indicated that the content would be useful for their business.
“The education we provide to brokers is an important part of our service and role as a lender and it’s great that we continue to hear our Roadshows are adding value for our partners in the broker sector, “ Mr Rehayem said.
The Insights Roadshows also featured a video from Dun & Bradstreet, credit reporting and research analysts, covering comprehensive credit scoring and how industry protocols will change in future. Also in attendance as a guest speaker was Dan Collins, an Australian gold and silver medal winning Olympian, who presented key insights into creating a high performance culture in business.
Following the success of this year’s events, Pepper Money will return with another national Insight Roadshow series in 2017.
For more information, please contact DEC PR on behalf of Pepper Group: 02 8014 5033 | firstname.lastname@example.org
Pepper Group offers a unique, diversified, global portfolio of financial services including Lending, Advisory and Asset Servicing across the residential and commercial property sectors - as well as in consumer, auto and equipment finance.
As a people focused lender, we specialise in flexible loan solutions based on individual credit assessment. It enables us to support many borrowers who fall outside the credit criteria of the major banks. As a third party servicer, we administer loan books on behalf of other banks and financial institutions – when they don’t have the capacity. We step in, using our own processes or expertise to administer loan payments or manage the arrears and recovery process.
We are one of the top 500 companies listed on the Australian Securities Exchange (ASX:PEP). Our offices span Australasia, Asia and Europe.
We're a global leader in alternative solutions with over 600,000 customers worldwide and $44.4 billion in assets under management as at 31 March 2016 – comprising $6 billion in lending assets and a servicing portfolio of $38.4 billion.
At Pepper we discover new ways to finance ambition.