Australian Mortgage Awards 2021 Non-Bank of the Year
Australian Mortgage Awards 2021 Best Industry Marketing Campaign
Canstar Green Excellence Award 2022
Accolades
Media
Pepper Money celebrates 21st birthday
April 2021
Making it count – why conversion is key
Pepper Money CEO Mario Rehayem has a unique appreciation and understanding of the importance of loan conversions for mortgage brokers.
A former mortgage broker himself, he says the number of hours brokers spend on loans that go nowhere is daunting. They are often knocked back due to changing or opaque credit policies.
Rehayem says conversion is important for the whole lending ecosystem – customers, brokers, and lenders.
“I’ve spent over two decades working alongside brokers, and in my recent broker interviews it became apparent that broker pain points haven’t changed much at all. The fundamental challenge of conversion still exists,” says Rehayem.
A customer typically sits down with a broker whom they see as a professional, he says. The broker spends a few hours getting to know the customer, carrying out assessments and recommending which lender suits that person’s needs.
“As you can imagine, for the customer, there’s a bit of excitement that they’re taking this significant step, applying for a loan, one of the largest investments they’ll ever make, only to [sometimes] find out later that they are not successful,” he says.
“We see this as a very poor experience for the customer; "we consider it the point when the customer" may begin to doubt their broker’s capabilities of recommending a suitable product.”
This puts pressure on the broker.
“That’s a couple of hours they have put into an investment and got no return – it actually makes bad business sense to continually not convert loans. The customer gets a poor experience, and the broker isn’t getting paid. There are ultimately no winners.”
Many lenders are constantly moving the goalposts of their credit appetite, says Rehayem.
The other problem is that customers are “falling victim to a shiny rate” only to find out after applying for the loan that the lender’s credit policy for that product doesn’t apply to them.
Conversion tips for brokers
Converting loans starts with education, says Rehayem. This includes having a better understanding of the parameters of the lender panel, whether this comprises mainstream banks or non-bank lenders, and of the probability of customers getting a loan with specific lenders.
“It comes down to understanding credit policies of particular lenders but also the type of customers they’re attracting. If they’re attracting a certain segment of borrower, then better aligning themselves with lenders that appreciate or understand that type of customer is valuable.
“It really comes down to knowing your credit policies, knowing your customer base, and marrying the two together.”
Rehayem says brokers are excited and grateful that Pepper Money is offering them tools such as Pepper Product Selector (PPS), which takes just a few minutes to provide a rate, product, and fees associated with a customer’s specific needs.
“We’re able to give them a quick answer in under two minutes, with transparent indicative rates and fees. It gives a huge confidence boost for the broker that when they do recommend a Pepper product using the PPS tool, they can have confidence that there is an option that they can progress with.”
PPS is a sophisticated tool that does an electronic valuation, an LVR postcode search, and obtains an Access Seeker credit report, simultaneously feeding the information through Pepper Money’s unique cascading credit model, Rehayem says.
PPS is also useful when a client has had a negative response from the
original lender. Brokers can then offer an indicative approval on a Pepper Money loan and provide the rates and fees.
“It just bolsters the positioning of the broker that they are experts in their field, they haven’t given up on the customer, and they’re giving them an alternative solution,” he says.
Boosting conversion rates
Pepper Money has always been an advocate for broker education, and investing in the broker network is a priority, says Rehayem.
“Whether it’s tools on our websites [or] courses that we’ve put brokers on, it’s that constant reinvestment in the broker channel.”
Another broker tool is Pepper Resolve, which offers an alternative lender product with no surprises when it comes to rates and fees post-assessment.
Rehayem says Pepper Money also invites brokers into its credit workshops, and they love the fact that they can “pick the brains” of the credit team.
“Where Pepper Money differentiates is its transparency – you can either use the tool, and it will give you the goalposts in under two minutes, or you can come into our credit workshops and really get an understanding of how your credit team think and what they look for when they receive a submission.”
Broker partnerships
Pepper Money is proud of the fact that 97% of its business comes from mortgage brokers, says Rehayem.
“We’ve been backing the broker channel now for over 21 years. I used to be a mortgage broker myself, and I’ve got first-hand experience and an understanding of the typical pain points for brokers and customers.”
Pepper Money invests a lot of time adjusting its processes, products, and the way it communicates. It also responds to brokers’ feedback about changes or improvements needed.
“We’re on the front foot, constantly changing and ensuring we’re delivering a seamless and transparent offering to both the broker and the customer.”
Rehayem says Pepper Money never contacts a broker-introduced customer directly unless a broker requests this.
“We respect the channel that has referred that customer to us, and you will not get any channel conflict from the Pepper stable.”
The non-bank lender has also “upped the ante” in its support of customers post-settlement, making it easier to deal with Pepper Money through digital settlements, fast turnaround times, and phone calls.
“This reflects well on brokers because they have recommended Pepper Money to their customers, and we deliver with no surprises.”
Rehayem says brokers are loving this aspect of Pepper Money, and this is partly why mortgage originations have grown nearly 90% year-on-year.
“There’s a reason behind brokers choosing Pepper Money – that’s a combination of market-leading turnaround times; accuracy, and transparency in our decisioning; leading tech; the way that we treat their customers – and we’ve got a very strong BDM force that have built strong relationships with brokers built on trust and expertise.”
Spotlight
“There’s a lot of false hope built, and unfortunately around 50% of most customers are getting a ‘no’ when it could be a ‘yes’. The possibility of yes may exist, but in many cases it never gets presented as an option,” he says.
“Conversion is key, because it’s fundamentally synonymous with delivering a great experience, and delivering on the value of a broker as the expert.
“It makes business sense [for brokers] to try to align their understandings with lenders that are going to convert or have a higher probability of yes on every application. That’s where Pepper Money has spent a lot of time focusing on better understanding the constraints, the pain points of the customer and the broker, and trying to find better ways to service those customers and brokers to get a higher probability of yes."
Pepper Money is a non-bank lender with businesses in Australia and New Zealand. Pepper Money provides a variety of home loan options, as well as car loans, personal loans, loans for professional equipment, and commercial loans. In 2021 Pepper Money listed on the Australian Securities Exchange (ASX: ticket PPM).
Company Profile
2000
Year established
1000+
Number of employees
288,900
Number of customers served (cumulative since 2014)
18,000+
Number of accredited mortgage brokers
1 in 9
Number of electric vehicles financed by Pepper Money in Australia
Bio
Spotlight
Milestones
Media
Accolades
Company Profile
Years in industry
21
Number of employees
1000+
Career highlight
“Working with the brilliant people that make Pepper Money what it is today has fuelled my energy and passion to do more for others, particularly the underserved in
our community”
Mario Rehayem
CEO at Pepper Money
Ensuring a customer’s loan makes it all the way to settlement is crucial to a broker’s value proposition and business success, which is why Pepper Money continues to invest in tech and processes that boost broker conversions
Read on
“It really comes down to knowing your credit policies, knowing your customer base, and marrying the two together”
Mario Rehayem,
Pepper Money
“With Pepper Product Selector, brokers can be confident of presenting an indicative offer to customers, knowing we will not change the product selection post-full assessment. We deliver a commitment in under two minutes with no surprises”
Mario Rehayem,
Pepper Money
Share
Australian Mortgage Awards 2021 Non-Bank of the Year
Australian Mortgage Awards 2021 Best Industry Marketing Campaign
Canstar Green Excellence Award 2022
Accolades
Media
Making it count – why conversion is key
Karen Adams has had a remarkable journey to her current role as CEO of Fundserv. Originally from Toronto, Adams earned a bachelor’s degree in mathematics and economics at Queens University, followed by an MBA in international finance at the University of British Columbia. After graduating, she set off across the globe, holding various positions with HSBC that took her to London, Dubai, Hong Kong, Beijing, Shanghai, Seoul and Mumbai.
That global experience gave Adams a unique perspective, prompting her to develop a leadership style that’s based on developing relationships with each individual, listening and understanding to help them reach their potential. That approach goes well beyond her own team, allowing Fundserv to succeed in creating solutions for its members.
“Having worked in many different countries, people ask if I am an expert in multicultural leadership,” Adams says. “I always say there is no such thing because that assumes you manage people based on their background. I have learned that people all want the same things: to develop our careers, give our kids a good future, etc. When she returned to Canada learned that people all
“That’s a couple of hours they have put into an investment and got no return – it actually makes bad business sense to continually not convert loans. The customer gets a poor experience, and the broker isn’t getting paid. There are ultimately no winners.”
Many lenders are constantly moving the goalposts of their credit appetite, says Rehayem.
The other problem is that customers are “falling victim to a shiny rate” only to find out after applying for the loan that the lender’s credit policy for that product doesn’t apply to them.
“There’s a lot of false hope built, and unfortunately around 50% of most customers are getting a ‘no’ when it could be a ‘yes’. The possibility of yes may exist, but in many cases it never gets presented as an option,” he says.
“Conversion is key, because it’s fundamentally synonymous with delivering a great experience, and delivering on the value of a broker as the expert.
“It makes business sense [for brokers] to try to align their understandings with lenders that are going to convert or have a higher probability of yes on every application. That’s where Pepper Money has spent a lot of time focusing on better understanding the constraints, the pain points of the customer and the broker, and trying to find better ways to service those customers and brokers to get a higher probability of yes."
From those forums, a common theme arose that has plagued the industry for years: the amount of paper required in transactions.
“We have a motto to ‘axe the fax,’ and we saw this opportunity where members didn’t want their staff going into the office, but there are still physical cheques going back and forth,” Adams explains. “We put in place, in just six months, Ad-Hoc Money Movement [A$M]. We responded to the industry and are in the process of replacing cheques, which I think is awesome. We launched in January and have seen so much volume. We think ultimately we are keeping people healthier by not having to travel into the office.”
Spotlight
Conversion tips for brokers
Converting loans starts with education, says Rehayem. This includes having a better understanding of the parameters of the lender panel, whether this comprises mainstream banks or non-bank lenders, and of the probability of customers getting a loan with specific lenders.
“It comes down to understanding credit policies of particular lenders but also the type of customers they’re attracting. If they’re attracting a certain segment of borrower, then better aligning themselves with lenders that appreciate or understand that type of customer is valuable.
“It really comes down to knowing your credit policies, knowing your customer base, and marrying the two together.”
Rehayem says brokers are excited and grateful that Pepper Money is offering them tools such as Pepper Product Selector (PPS), which takes just a few minutes to provide a rate, product, and fees associated with a customer’s specific needs.
“We’re able to give them a quick answer in under two minutes, with transparent indicative rates and fees. It gives a huge confidence boost for the broker that when they do recommend a Pepper product using the PPS tool, they can have confidence that there is an option that they can progress with.”
PPS is a sophisticated tool that does an electronic valuation, an LVR postcode search, and obtains an Access Seeker credit report, simultaneously feeding the information through Pepper Money’s unique cascading credit model, Rehayem says.
PPS is also useful when a client has had a negative response from the original lender. Brokers can then offer an indicative approval on a Pepper Money loan and provide the rates and fees.
“It just bolsters the positioning of the broker that they are experts in their field, they haven’t given up on the customer, and they’re giving them an alternative solution,” he says.
Fundserv is the indispensable connectivity hub for the Canadian investment industry. Headquartered in Toronto, we electronically connect Manufacturers, Distributors, and Intermediaries, enabling them to buy, sell, and transfer investment funds. With more than 100 employees, Fundserv serves hundreds of members—executing up to 63 million yearly network transactions—and provides online access to more than 70,000 investment fund products.
Established in 1993, Fundserv is a private corporation that is owned by the industry we serve. Our 10 shareholders are a cross-section of Manufacturers, Distributors, and Service Providers who represent our members.
We operate using a cost-recovery model, meaning any unused profit may be rebated back to our members. In addition to our network and applications, we lead and facilitate industry committees and working groups that promote automation initiatives and establish the industry’s electronic standards.
By ensuring every trade is processed timely, accurately, and securely, Fundserv has rightfully earned a reputation for service excellence—a hallmark of more than 25 years in the investment industry.
Company Profile
1983
Year established
1000+
Number of employees
288,900
PROPORTION OF WOMEN AMONG FUNDSERV EMPLOYEES
18,000+
PROPORTION OF WOMEN IN LEADERSHIP
63,514,128
NUMBER OF ORDERS PROCESSED IN 2019
“It really comes down to knowing your credit policies, knowing your customer base, and marrying the two together”
Mario Rehayem,
Pepper Money
“With Pepper Product Selector, brokers can be confident of presenting an indicative offer to customers, knowing we will not change the product selection post-full assessment. We deliver a commitment in under two minutes with no surprises”
Mario Rehayem, Pepper Money
Years in industry
21
Career highlight
“Working with the brilliant people that make Pepper Money what it is today has fuelled my energy and passion to do more for others, particularly the underserved in our community”
Karen Adams
President and CEO at Fundserv
Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent
Read on
Share
Share
Australian Mortgage Awards 2021 Non-Bank of the Year
Australian Mortgage Awards 2021 Best Industry Marketing Campaign
Canstar Green Excellence Award 2022
Accolades
Media
Milestones
Making it count – why conversion is key
Karen Adams has had a remarkable journey to her current role as CEO of Fundserv. Originally from Toronto, Adams earned a bachelor’s degree in mathematics and economics at Queens University, followed by an MBA in international finance at the University of British Columbia. After graduating, she set off across the globe, holding various positions with HSBC that took her to London, Dubai, Hong Kong, Beijing, Shanghai, Seoul and Mumbai.
That global experience gave Adams a unique perspective, prompting her to develop a leadership style that’s based on developing relationships with each individual, listening and understanding to help them reach their potential. That approach goes well beyond her own team, allowing Fundserv to succeed in creating solutions for its members.
“Having worked in many different countries, people ask if I am an expert in multicultural leadership,” Adams says. “I always say there is no such thing because that assumes you manage people based on their background. I have learned that people all want the same things: to develop our careers, give our kids a good future, etc. When she returned to Canada learned that people all
From those forums, a common theme arose that has plagued the industry for years: the amount of paper required in transactions.
“We have a motto to ‘axe the fax,’ and we saw this opportunity where members didn’t want their staff going into the office, but there are still physical cheques going back and forth,” Adams explains. “We put in place, in just six months, Ad-Hoc Money Movement [A$M]. We responded to the industry and are in the process of replacing cheques, which I think is awesome. We launched in January and have seen so much volume. We think ultimately we are keeping people healthier by not having to travel into the office.”
While she’s proud of the strides Fundserv made in 2020, Adams acknowledges that it was a challenging time as a leader. Not only did she have to ensure Fundserv kept running efficiently as her team transitioned to working from home, but she was also filled with concern for her team members.
“I just worried about our employees, their mental health and if they would be OK,” Adams says. “I like to see people, so I set up one-on-ones just to connect with them.
Moving forward, Adams says Fundserv’s goals remain aligned with those of its members, and her team will continue listening and understanding what members need so the organization can evolve accordingly. She adds that she wants Fundserv to be so good at providing a secure and reliable service that members forget it’s there – and she wants the company to continue to inspire change in the industry.
“It is sad that it took a pandemic to recog-nize the cheque issue and solve it,” Adams says. “What we will do in the future is root out those things in the industry and not wait for a pandemic to ignite change. There is no reason we can’t change. Change, like auto-mation, will accelerate from now, and we’ll do our part to keep it going.”
Spotlight
Many lenders are constantly moving the goalposts of their credit appetite, says Rehayem.
The other problem is that customers are “falling victim to a shiny rate” only to find out after applying for the loan that the lender’s credit policy for that product doesn’t apply to them.
“There’s a lot of false hope built, and unfortunately around 50% of most customers are getting a ‘no’ when it could be a ‘yes’. The possibility of yes may exist, but in many cases it never gets presented as an option,” he says.
“Conversion is key, because it’s fundamentally synonymous with delivering a great experience, and delivering on the value of a broker as the expert.
“It makes business sense [for brokers] to try to align their understandings with lenders that are going to convert or have a higher probability of yes on every application. That’s where Pepper Money has spent a lot of time focusing on better understanding the constraints, the pain points of the customer and the broker, and trying to find better ways to service those customers and brokers to get a higher probability of yes."
Conversion tips for brokers
Converting loans starts with education, says Rehayem. This includes having a better understanding of the parameters of the lender panel, whether this comprises mainstream banks or non-bank lenders, and of the probability of customers getting a loan with specific lenders.
“It comes down to understanding credit policies of particular lenders but also the type of customers they’re attracting. If they’re attracting a certain segment of borrower, then better aligning themselves with lenders that appreciate or understand that type of customer is valuable.
“It really comes down to knowing your credit policies, knowing your customer base, and marrying the two together.”
Rehayem says brokers are excited and grateful that Pepper Money is offering them tools such as Pepper Product Selector (PPS), which takes just a few minutes to provide a rate, product, and fees associated with a customer’s specific needs.
Fundserv is the indispensable connectivity hub for the Canadian investment industry. Headquartered in Toronto, we electronically connect Manufacturers, Distributors, and Intermediaries, enabling them to buy, sell, and transfer investment funds. With more than 100 employees, Fundserv serves hundreds of members—executing up to 63 million yearly network transactions—and provides online access to more than 70,000 investment fund products.
Established in 1993, Fundserv is a private corporation that is owned by the industry we serve. Our 10 shareholders are a cross-section of Manufacturers, Distributors, and Service Providers who represent our members.
We operate using a cost-recovery model, meaning any unused profit may be rebated back to our members. In addition to our network and applications, we lead and facilitate industry committees and working groups that promote automation initiatives and establish the industry’s electronic standards.
By ensuring every trade is processed timely, accurately, and securely, Fundserv has rightfully earned a reputation for service excellence—a hallmark of more than 25 years in the investment industry.
Company Profile
1983
Year established
1000+
Number of employees
288,900
PROPORTION OF WOMEN AMONG FUNDSERV EMPLOYEES
18,000+
PROPORTION OF WOMEN IN LEADERSHIP
63,514,128
NUMBER OF ORDERS PROCESSED IN 2019
Years in industry
21
Career highlight
“Working with the brilliant people that make Pepper Money what it is today has fuelled my energy and passion to do more for others, particularly the underserved in our community”
Karen Adams
President and CEO at Fundserv
Career highlight
Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent
Read on
“It really comes down to knowing your credit policies, knowing your customer base, and marrying the two together”
Mario Rehayem,
Pepper Money
“With Pepper Product Selector, brokers can be confident of presenting an indicative offer to customers, knowing we will not change the product selection post-full assessment. We deliver a commitment in under two minutes with no surprises”
Mario Rehayem,
Pepper Money
IN Partnership with
In Partnership with
In Partnership with
April 2021
May 2021
July 2021
Feb 2022
Mar 2022
April 2022
Pepper Money celebrates 21st birthday
April 2021
Lists on the ASX
May 2021
Appoints new general manager, mortgages and commercial lending, Barry Saoud
July 2021
Delivers full-year results exceeding IPO forecasts
Feb 2022
Launches Near Prime Clear loans
Mar 2022
Acquires 65% of Stratton Finance
April 2022
Milestones
Completes sixth public securitisation for 2021, bringing the total raised over the year to $4.8bn
Dec 2021
Dec 2021
Wins Non-Bank of the Year at the Australian Mortgage Awards
Oct 2021
Oct 2021
Number of electric vehicles financed by Pepper Money in Australia
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2012
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Copyright © 1996-2022 Key Media, Inc.
Companies
People
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Contact Us
RSS
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
SPECIALTY
TV
Resources
US
CA
AU
NZ
UK
Appoints new general manager mortgages and commercial lending, Barry Saoud
July 2021
July 2021
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