CEO discusses half-year results
Asset finance loan originations are up a whopping 67% for the six months ending June 2022, non-bank Pepper Money has reported.
In its first-half 2022 results, released in August, Pepper Money said asset finance originations grew 21.5 times’ system to $1.49bn, and were up 27% on the second half of 2021.
MPA caught up with Pepper Money CEO Mario Rehayem (pictured above) to find out what’s driving demand for asset finance and how that has led to the significant increase in loans written.
The asset finance results, which are solely for Australia, capture all the asset finance products available through Pepper Money. They include vehicle finance (such as, cars, bikes, caravans, and boats) and finance for assets used within a business (for example, cars, rigid trucks, yellow goods, earthmoving equipment, and construction equipment).
Growth is underpinned by investment in technology, along with partnerships, broker and introducer presence, and a focus on the electric vehicle market, Rehayem said.
“Our asset finance business has never seen stronger origination volumes fuelled by our technology investments, partnerships, broker and introducer presence and our key focus on the EV market,” Rehayem said.
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Investment in technology enabled Pepper Money to enhance its service offering, empowering brokers to deliver faster outcomes to customers.
“This tech includes a robust credit auto-decisioning engine, integrated e-signing solution for customers and digital ID verification, which has created efficiencies and helped more customers succeed,” Rehayem said.
Over the last couple of years, Rehayem said there had been an accelerated shift towards online research for purchasing of vehicles and finance. Consumers have a greater degree of comfort – and almost an expectation – to transact online.
In the asset finance space, speed to decision and time to cash are essential, he said.
“We intend to continue investing in our processes and technology to ensure we remain leaders in both for our customers and partners,” Rehayem said.
The electric vehicle (EV) market is a key focus for Pepper Money, and it aims to make EVs more accessible and affordable.
This is vital to meeting Australia’s commitment to net zero goals, to increasing energy security and improving air quality, Rehayem said.
Pepper Money EV loans are designed to help customers “drive every dollar further”, offering flexible conditions, no ongoing fees, and competitive rates, he said. A recent partnership with Evie Networks is aimed at helping more Australians make sustainable choices.
“Under the exclusive offer, drivers that finance their EV with Pepper can charge at any Evie public charging station across Australia for up to 12 months at no cost,” Rehayem said.
As the adoption of EVs continues to grow, Rehayem said brokers could expect a proliferation of products designed to simplify the buying and financing process.
“Sales of new EVs in Australia have tripled in the past 12 months off the back of state government rebates, discounts and a more competitive domestic market driving down prices,” Rehayem said.
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Referring to the 53% annual jump in loan originations in the first half of 2022 as “record-breaking”, Rehayem said mortgage brokers played a significant role in the result.
“Brokers trust Pepper Money to get the deal done, brokers recommend Pepper Money with confidence knowing their customers have a higher probability to yes delivered in market leading turnaround times,” he said.
Pepper Money offers a breadth of product options and a transparent credit policy, which he said ultimately builds trust and confidence with brokers and their customers.
“Without brokers, we wouldn’t have the privilege of delivering great products, processes, and policies for so many customers. Importantly, we wouldn’t be able to achieve great outcomes for customers without our brokers,” Rehayem said.
In line with its mission to help people succeed, Pepper Money is helping customers to lower their carbon footprint through the construction and purchase of energy efficient and low carbon homes, funded via accredited green bonds.
The non-bank lender has also partnered with a new online car buying platform, designed to take the hassle out of buying and selling a car. It remains focused on delivering value for customers and introducers, through making their experience as personalised, seamless, and effortless as possible.
