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Specialist lenders, everyday champions

As traditional banks tighten policies, and their response times slow down, specialist lenders are gaining ground by offering speed, flexibility and personalised service to support more borrowers across New Zealand

Tony Mounce

Tony Mounce Mortgages

Industry experts

Jen Qu

QC Financial Services Ltd

Adrienne Begbie is managing director at Prospa New Zealand, where she leads the team and drives local business operations. With nearly 20 years of experience in financial services, including nine years at Resimac, she has a proven track record in small business banking, sales management, insurance and loans. Begbie was pivotal in establishing Prospa’s New Zealand presence in 2019. A passionate advocate for Kiwi small businesses, she is dedicated to unlocking their potential and building strong partnerships across the country.

Prospa NZ

Adrienne Begbie

Luke Jackson is CEO of the recently launched non-bank lender Go Lend. His experience in the New Zealand finance market spans over 28 years and includes a background in corporate, commercial and retail banking at major banks in New Zealand. Over the last decade, Jackson has been a senior member of the New Zealand non-bank market. He was instrumental in pioneering the use of peer-to-peer borrowing for secured property loans and was CEO of one of the initial platform providers during the early licensing period. More recently, Jackson was general manager New Zealand at one of the publicly listed Australian non-bank mortgage providers.

Go Lend

Luke Jackson

Johny Kale brings over 20 years of experience in the funds management industry, having worked across multiple jurisdictions, including the UK, the Cayman Islands and Ireland. He has held senior management positions at leading institutions such as Northern Trust in Ireland and, most recently, North Asset Management LLP in the UK, where he served as operations and treasury manager for six years. His expertise spans key areas of funds management, including operations, treasury, hedge funds, legal and compliance. Kale holds a Bachelor of Business Studies (Finance & Property) from Massey University in New Zealand, as well as a Certificate in Investment Management from the Chartered Institute for Securities and Investment (UK). During his time in the UK, he was also registered as an FCA Approved Person. Kale is a co-founder of CFML and has been instrumental in shaping the business since its inception in 2016. He was appointed CEO in 2024.

CFML Loans

Johny Kale

Campbell Smith is the country head for Pepper Money New Zealand. With over 20 years’ experience in the banking and financial services industry, Campbell has substantial executive leadership, financial and operational experience, having worked in various commercial functions across mortgages and asset finance. In 2022, Campbell joined Pepper Money from LeasePlan, where he was director and country manager. Prior to that, he worked at organisations such as Turners Automotive and Westpac.

Pepper Money

Campbell Smith

With over three decades of banking experience, Tony Mounce is a seasoned expert in New Zealand’s financial landscape. As managing director of Tony Mounce Mortgages since its founding in 2009, he leads a trusted Christchurch-based team supporting first home buyers, families, business owners and property investors. Mounce’s background in personal and business banking informs his client-focused approach, helping Kiwis navigate lending with clarity and confidence.

Tony Mounce Mortgages

Tony Mounce

“We are quite happy to assess different forms of income that falls outside of traditional PAYE wages ... we are very adept at assessing these alternative forms of income verification”

Campbell Smith, Pepper Money

“It’s been no bed of roses/No pleasure cruise” – Queen, We Are the Champions, 1977

“There’s a lot of residual stock that’s got to flood through first before we see any more dramatic increase in confidence in terms of transacting”

Luke Jackson, Go Lend

“This upcoming year is going to be a year of opportunity. Customers are looking for properties, looking to invest in their businesses”

Adrienne Begbie, Prospa NZ

“I teach my team about old-fashioned lending and dealing with non-banks. Old-fashioned lending is a phone call, and even if it’s a failure, it’s fail fast. The banks just don’t have that any more”

Tony Mounce, Tony Mounce Mortgages

Read on

Conrad Funds Management Limited is a New Zealand-based boutique fund manager licensed in 2016. The vision of the business is to provide investors with investment products tailored to their needs and with access to experienced professionals who endeavour to provide a product with a property focus. CFML Loans is the lending arm of Conrad Funds Management’s business. CFML Loans (which includes CFML Lending Limited and Conrad Funds Management Limited) is a non-bank lender that specialises in residential first-mortgage lending. CFML Loans works with mortgage advisers throughout New Zealand to ensure customers get a quick response from our highly experienced lending team with over 30 years’ experience. Our strong focus is on delivering a solution for customers’ lending needs, while also delivering a positive customer experience.

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M&A Insights 2021

Insurance Business America uncovers the answers to brokers’ biggest questions about mergers and acquisitions, with expert insight from MarshBerry, Baldwin Risk Partners and Relation Insurance

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Phil Trem

MarshBerry

Timothy J. Hall

Relation Insurance

Gerard Vecchio

MarshBerry

Industry experts

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Mashberry

Gerard Vecchio

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Timothy J. Hall

Mashberry

Phil Trem

Baldwin Risk Partner

Trevor Baldwin

In Partnership with

M&A Insights 2021

Insurance Business America uncovers the answers to brokers’ biggest questions about mergers and acquisitions, with expert insight from MarshBerry, Baldwin Risk Partners and Relation Insurance

Read on

Trevor Baldwin

Baldwin Risk Partners

Phil Trem

MarshBerry

Timothy J. Hall

Relation Insurance

Gerard Vecchio

MarshBerry

Industry experts

Baldwin Risk Partners

Trevor Baldwin

Mashberry

Phil Trem

Relation Insurance

Timothy J. Hall

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Mashberry

Gerard Vecchio

A market finding more confidence

Published 09 June 2024

Campbell Smith

Pepper Money

Johny Kale

CFML Loans

Luke Jackson

Go Lend

Adrienne Begbie

Prospa NZ

Phil Trem

MarshBerry

Timothy J. Hall

Relation Insurance

Gerard Vecchio

MarshBerry

Trevor Baldwin

Baldwin Risk Partners

Phil Trem

MarshBerry

Jen Qu is the director of QC Financial Services Ltd and MortgageGPT Ltd, with over a decade of experience in financial services, specialising in both residential and commercial lending. Holding a double degree in chemistry and finance, she blends analytical precision with strategic financial insight to deliver personalised lending solutions. Qu began her career in auditing, developing a strong foundation in financial compliance and risk management. She has successfully assisted hundreds of Kiwis and new immigrants – from home buyers to business owners – in confidently navigating complex financial landscapes.

QC Financial Services Ltd

Jen Qu

“It’s important to recognise the strength of New Zealand’s banking and non-bank sectors. Compared to many global markets, NZ remained remarkably resilient during the GFC and throughout COVID”

Johny Kale, CFML Loans

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“Technology and AI changing the industry is not about how and what – it’s about when. It’s definitely going to happen, and [the question is] how we can adapt ourselves to the pace of it”

Jen Qu, QC Financial Services

Pepper Money was established in 2000 to help people achieve their financial dreams. By providing a flexible approach to finance, we’re able to help turn a ‘no’ from the banks into a ‘yes’. Since then, we’ve become one of the largest, most trusted and award-winning non-bank lenders in Australia and New Zealand, making a difference to thousands of people’s lives. Our flexible approach means looking at each person’s situation on its merits. We’re the home of home loan options.

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Prospa is New Zealand’s small business online lending specialist providing market-leading capital products and solutions to help Kiwi small businesses grow and prosper. Established in 2012 in Australia and 2018 in New Zealand, Prospa ensures applications are simple and funds can be accessed within 24 hours. Its cash flow products and services allow small businesses to grow and take advantage of opportunities to run their businesses, or help them pay for goods and services.

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Go Lend offers a licensed peer-to-peer marketplace for property-secured loans. Working with our trusted network of nationwide mortgage advisers, we provide tailored lending options for borrowers. With over 50 years of experience in the banking, non-bank lending, investment and risk management sectors, we offer skills and experience in the non-regulated short-term property finance market. As specialist lenders, we ensure customers experience quicker approvals and easier access to funding. For our investors we offer a transparent, flexible platform where they can access and select from a range of mortgage-backed loans that provide competitive fixed-income returns.

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FREDDIE MERCURY wasn’t thinking about the economic struggles of Kiwi households and businesses when he wrote We Are the Champions, but, like Freddie, borrowers in New Zealand have paid their dues time after time. While the easing of high interest rates means the worst is over, no one seems to be triumphantly proclaiming victory from the rooftops. It’s more a case of cautious optimism in New Zealand’s financial markets. Unemployment and company failure levels remain high despite cheaper loans and the expectation of more rate drops to come. Consumer confidence, while not flash, is better than last year but still fragile as global uncertainty and tight budgets stymie any full-throated chorus of spending. Call it a case of ‘we are the champions-in-waiting’. Against this backdrop, specialist lenders – commonly called non-banks – are key enablers of resilience, carving out an increasingly important niche in the country’s financial ecosystem by serving clients who fall outside traditional banking parameters. By moving faster, being more flexible and focusing on real-world borrower circumstances, these lenders are going beyond just filling gaps that banks avoid – they’re building bridges. NZ Adviser recently sat down with leading non-bank lenders Prospa, Pepper Money, CFML, Go Lend and friends at Onemata Restaurant in Viaduct Harbour, Auckland. Prospa was represented by managing director Adrienne Begbie, Pepper Money by New Zealand country head Campbell Smith, Go Lend by chief executive Luke Jackson and CFML by chief executive Johny Kale. They were joined by two advisers to provide a different perspective: Tony Mounce, founder and managing director at Tony Mounce Mortgages, and Jen Qu, director of QC Financial Services.

“The year 2025 has brought the improvement in the markets that we had all been waiting for,” said Pepper Money’s Campbell Smith. “I would describe it as a muted improvement but an improvement that we’ve been waiting for after a sustained period of subdued market conditions.” This sentiment is echoed across the non-bank sector, where lenders are seeing signs of recovery after challenging economic conditions. “We are seeing what we call cautious optimism,” said Adrienne Begbie from Prospa New Zealand, a specialist in small business lending. “People are a lot more confident. We see that in our portfolio lending to small businesses – people are more likely to take lending if they’re confident about the future.

“This upcoming year is going to be a year of opportunity. Customers are looking for properties, looking to invest in their businesses. [Our task] is really working with advisers to help those customers with that opportunity.” The small business sector often serves as an early indicator of broader economic health, and Begbie noted that arrears in Prospa’s loan portfolio have “dropped dramatically” as businesses start to perform better across some industries. Central bank interest rates have fallen from the peak of 5.5% a year ago and still appear to be on a downward path – these reductions have been a key driver of renewed confidence.

Consumer confidence has zigzagged in recent months, but the long-term trend remains up in the face of an unpredictable global economy for now. At the same time, inflation expectations have increased among economists and industry leaders since US President Donald Trump’s so-called “liberation day” tariffs were announced. A new Business Expectations Survey by the Reserve Bank of New Zealand capturing ‘main street’ business sentiment also shows that inflation expectations for 12 months ahead are now tracking closer to the top of the central bank’s 1–3% target range.

“We were coming from a market of undersupplied houses,” said Go Lend’s Luke Jackson. “Now there’s a lot of residual stock that’s got to flood through first before we see any more dramatic increase in confidence in terms of transacting.” For property investors in particular, the improving conditions have spurred activity, according to Johny Kale from CFML Loans. “Over the past five to six months, we’ve seen a noticeable increase in activity from investor clients,” he said. “This appears to be driven not only by falling interest rates but also by investors actively exploring market opportunities, assessing potential deals and seeking value in current pricing.” Tony Mounce, of brokerage Tony Mounce Mortgages, has observed a similar trend: “We’re certainly seeing an upswing – some good things happening. Obviously, lower rates are helping that flow through ... with 81% of all mortgages redone this year, going from [interest rates starting with] sevens to fives – it’s just a big change that makes people feel happier and have more money in their pockets.” Jen Qu from QC Financial Services is optimistic about several market segments: “I’m very positive about next year. My market is mainly immigration [based]. During COVID, the government issued one-year resident visas. With interest rates going down, I think there will be a lot of first-time buyers.” She also sees opportunities in the investor segment due to tax deduction changes, as well as with property developers taking advantage of lower construction costs. “A lot of my clients mention the construction cost recently is quite low, so they’re looking for funding to start developments.”

The non-bank difference

What distinguishes non-bank lenders from traditional banks in New Zealand? The panel of industry experts identified several key factors: personalised service, speed of decision-making, and flexibility in assessing borrower circumstances. Smith explained that Pepper Money’s point of difference lies in how it services mortgage advisers: “We are a fully intermediated business, and as such we place a lot of value on our adviser networks and the support they provide. As a consequence, we put a lot of time, effort and investment into building market-leading adviser tools via our digital stack and provide advisers with the support they need through our deal-workshopping service.”

Unlike banks, which often rely on rigid algorithmic decision-making, specialist lenders take a more hands-on approach. “We don’t expect advisers to have an intimate knowledge of our product and policy, as we recognise how busy high-performing advisers can be on any given day,” Smith said. “This is why we offer adviser support services via our skilled and experienced BDMs, who can provide real-time guidance and support that ensures advisers are in turn able to provide an excellent experience for their clients.” This flexibility extends to how non-banks assess borrower finances, particularly for self-employed people or those with complex income structures. “We are quite happy to assess different forms of income that falls outside of traditional PAYE wages ... we are very adept at assessing these alternative forms of income verification. Our goal is to ensure that we have a clear and accurate picture of each borrower’s financial position so we can offer helpful loan options that really meet their needs,” Smith added. Begbie emphasised that Prospa’s business lending serves customers who have traditionally been underserved by banks: “Small businesses have always been underserved, which is why we are here. We look at real-time data. We know what’s happening in the business today, so we look at the income today – the last couple of months’ income – so we know what the business’s health is.” For Jackson, the non-bank advantage boils down to expertise. “The non-bank market is full of experienced people, experienced financiers who’ve been in the game for a long time and understand transactions,” he said. “Advisers and borrowers are coming to non-banks for the skill and experience.”

He contrasts this with what he sees as declining expertise in traditional banking: “There’s a big push in automation, a big push in policy, but there isn’t necessarily the same skill that there was 20 years ago. If you’ve got a vanilla deal – two incomes, one house – great. But that’s not what a lot of New Zealanders have, and they need skilled financiers.” Speed is another crucial advantage, particularly for borrowers with time-sensitive opportunities. “We wanted to raise money quickly for a deposit on a construction project, so we went with a non-bank,” Begbie said, describing her own personal experience with a construction project in Te Anau. She was able to arrange finance within a day and buy the section.

Mounce, speaking from an adviser’s perspective, values the relationship-based approach. “I teach my team about old-fashioned lending and dealing with non-banks,” he said. “Old-fashioned lending is a phone call, and even if it’s a failure, it’s fail fast. The banks just don’t have that any more.” A fast ‘no’ is crucial for clients in many situations so that they can either approach another lender or remedy a problem with the original application. Mounce pointed out that algorithmic lending can exclude worthy borrowers: “Just because the machine turned red at the bank, it doesn’t mean that the client doesn’t deserve to get that house or that business. That doesn’t mean they shouldn’t have it.”

Evolving customer needs

As economic conditions have changed over the past year, non-bank lenders have noticed shifts in customer behaviour and requirements. Data from credit bureau Centrix underscores the changing environment, with both credit demand and credit defaults higher than the same period last year. The subtrends are highly sector dependent, but how businesses are using funds borrowed also suggests there is less economic stress than in 2024.

Begbie elaborated on trends seen at Prospa: “Our change has probably been the use of funds from borrowers. Going back to confidence and optimism in the economy, businesses are probably more using funds to invest in their business today than maybe getting through it or paying salaries. They’re getting new staff, getting new stock.” She also highlighted a shift towards more flexible products: “From a product point of view, there’s probably a shift more to line of credit. A lot of people are now taking it just in case, so they’ve got the money available if they need it.” Smith noted that debt servicing challenges have been a major issue for borrowers over the past year. “One of the largest challenges we’ve sought to address for customers over the last year has been loan affordability and debt servicing, particularly with where the OCR has been for the better part of the last 18 months,” he said.

Centrix data shows that while mortgage arrears are slightly higher, loans overdue by more than 90 days are showing stability. While no one is saying economic conditions are rosy, this suggests that people are coping and able to proactively address hardship by engaging with lenders to seek lower rates. For Kale’s firm, adapting to market needs has involved subtle policy changes. “At CFML, we have focused on providing a broad range of lending solutions to meet the diverse and often unique needs of these borrowers,” he said. “Over the past 12 months, we’ve made some adjustments, tweaking policies and making changes to better support clients in doing business with us.” CFML has evolved into a broader-spectrum lender and changed its distribution model recently. “Previously, we didn’t manage our own distribution, but that shift has fundamentally changed our model – and it’s been hugely beneficial,” Kale explained. “We’re now much closer to the market and in a better position to support client needs.” Advisers such as Qu are keen to have non-bank solutions as frontline options for customers rather than obscure options rarely pulled out of the briefcase. “[This year], I want to engage some support staff and also pay more attention to the policies, like teaching other advisers about non-bank lender policies, just to make sure when the adviser meets the client, they can give solutions at the initial meeting and not say, ‘I will check and call you back’.”

Competition and market growth

The non-bank lending sector in New Zealand accounts for a much smaller market share than in comparable countries – a KPMG report put the level at around 8% of the lending market here, compared to between 15% and 30% of the market in Australia and approximately 50% in the US. This suggests significant room for growth if the imbalances in lending ability and funding are addressed to create equal opportunities for both banks and non-banks. “Is there upside in the New Zealand market? Absolutely,” Smith said. “I’m convinced the market will be better served by greater utilisation from the adviser network. That’s a big part of our objective for New Zealand – provide education, get advisers accredited, get them to engage and start using us, and assist them with gaining familiarity with the rewarding non-bank proposition and the opportunity we represent for both advisers and their clients.” The growth is already evident in some advisory businesses. Mounce noted that non-bank lending used to represent about 1% of his business flows but now accounts for roughly 20%. Begbie believes growth requires greater awareness among advisers: “A lot of it is competition, but it’s awareness. That’s on us. We’ve done a lot of work over the years to get in front of advisers.” Jackson identified adviser education as the key challenge. “Our biggest competitor is not each other,” he said. “Our biggest competitor is advisers not dealing in non-bank. A borrower going to an adviser and saying, ‘I want to buy this house’, and the adviser saying, ‘you can’t do it, or you can’t do it right now’ – based solely on the request not fitting main bank criteria; that’s not supporting the goals and dreams of that customer.”

He acknowledged that while more advisers now understand non-bank options, “there’s still a lot of them out there who only deal with banks and don’t know how to service their clients fully with all the tools they actually have available”. This knowledge gap leads to a curious phenomenon, as Mounce explained: “What happens in Christchurch is that some of the advisers operating in the prime space don’t want to deal with the non-banks … they’re scared of it or something.” Kale believes there is an issue around levelling the playing field between non-banks and the major banks. “I’d like to see more balanced regulation that enables a level playing field for non-banks and smaller banks, helping them compete more effectively,” he said. “The RBNZ assesses capital adequacy using risk-weighted asset [RWA] calculations. NZ-incorporated registered banks can be accredited to use an internal rates-based approach to calculate RWAs for their retail funding. However, non-banks, who typically fund through securitisation warehouse funding, are subject to the RBNZ’s standardised approach. This standardised approach typically results in a higher cost of capital, which flows through to the interest rates on offer.” The discrepancy and its implications are known problems. “This issue has also been raised by the Commerce Commission report in 2024, which highlights smaller New Zealand banks that rely on the same standardised framework, which disadvantages them to the big four banks,” said Kale. However, he’s careful to note that any changes should preserve the stability of New Zealand’s financial system: “It’s important to recognise the strength of New Zealand’s banking and non-bank sectors. Compared to many global markets, NZ remained remarkably resilient during the GFC and throughout COVID. We don’t want to compromise that stability – so any future evolution must be approached pragmatically and with care.” But there are limits to competition in a small market, as Qu pointed out. “I encourage competition among the lenders, but I understand the New Zealand market is not very big to support a lot of lenders. I wish there was more competition among them,” she said.

Technology and innovation

Non-bank lenders are leveraging technology to improve customer experiences and operational efficiency, though they take different approaches based on their business models. Prospa, as a fintech company, has technology at its core. “That’s what Prospa is – we use technology. We’re a fintech,” Begbie said. “We have a huge investment in our technology and the ability to make decisions, which enables us to make a decision within 10 minutes when a deal comes in the door.” The company is planning to launch a new tool called Prospa IQ. “It’s an intelligent quoting tool that talks directly to our credit decision engine,” Begbie explained. “It’s an industry first that allows the adviser to know with a high degree of certainty the amount that will be approved and what rate they can get their customer.” Jackson, whose Go Lend is a newer entrant to the market, is using technology for funding: “We are heavily using technology within our funding structure and have invested significantly into our retail peer-to-peer offering.”

He sees potential for artificial intelligence to address integration challenges in the New Zealand market. “When I look at the way AI is going, auto-decisioning things isn’t necessarily what I think we run to first,” Jackson said. “I think AI has a big part to play in integrating the various existing native lender/CRM systems in the market, of which previous technology has tended to be expensive and a little unreliable.” Mounce sees immediate applications for AI in his advisory business: “The obvious first one that we’re looking at is the annual review system, because it doesn’t really need to have a human there.” However, he believes the core mortgage advice process will remain human-centred. “The client wants to talk to a human face to face because it’s a really important thing.” Qu is both fascinated and concerned by AI’s potential. “Technology and AI changing the industry is not about how and what – it’s about when,” she said. “It’s definitely going to happen, and [the question is] how we can adapt ourselves to the pace of it.” She shared a personal anecdote about AI’s capabilities: “The other day, I was asking ChatGPT about how to let my two border collies get along with each other better. It gave me a perfect answer. It almost made me cry, just how empathetic it can be. It scared me.” Kale suggested a future in which technology enhances rather than replaces the adviser-client relationship. “The relationship between the adviser and the client will always remain central,” he said. “But imagine a scenario where, over a half-hour coffee meeting, the adviser gathers a few key details and is able to provide an approval by the end of that discussion – that would be a great outcome for the client. While we’re not there yet, it’s a realistic prospect within the next three to five years, and non-banks will undoubtedly have a role to play in enabling that future.”

Managing growth and service levels

A key challenge for non-bank lenders is maintaining their service advantage as volumes increase, particularly when bank delays push more business their way. Pepper Money’s structure enables it to scale efficiently, Smith explained. “While we have an onshore resource here in New Zealand, we are backed by a significant operation based in Sydney that operates under New Zealand hours. So, whilst we’re a small, agile, experienced and skilled team in New Zealand, we have a significant back-office resource that we can scale up to support my team and our advisers on any given day. As a direct result, we have maintained our 24-hour SLA whilst volumes have effectively tripled in the first quarter of this year.” Jackson takes a more cautious approach to scaling, suggesting that non-banks shouldn’t position themselves as a backstop for bank inefficiency. “When you get into a market where the banks are doing 17-day [turnarounds], of course you’re going to take it to someone who’s faster and better.

But doing business isn’t looking at deals – doing business is settling deals,” he said. “When it comes to longer-term mortgage lending, I don’t think the non-bank role is to provide free backstop approvals because the banks are incompetent in terms of their pace, particularly for deals where there is little intention of actually proceeding with the non-bank. In many cases I have found that if a borrower is not prepared to commit something towards the upfront cost of a specialist lender’s assessment, then potentially a specialist lender may not have been the right fit for them.” Kale sees the same thing in his business: “There are a lot of tyre-kickers out there, so we’ve had to start charging up front. That’s part of the service – if you want a fast turnaround, there’s a cost associated with it. This helps us turn loans around quickly to the advisers.”

The path forward

While specialist lenders still occupy a relatively small portion of New Zealand’s lending market, they see themselves playing an increasingly important role in creating a more diverse and resilient financial system. “I see the non-bank market growing to be more in line with the Australian market,” Kale said. “The Commerce Commission has already come out saying that we need more competition in the market. More competition is expected to eventually drive down interest rates for the end consumer.” Others also see Australia as tracing the path forward, from products to tech to open banking. Smith emphasised the broader social benefit of a strong non-bank sector: “I think the non-bank segment has a vital role to play in the New Zealand market and all markets. We provide optionality and the ability for people that otherwise might not be serviced elsewhere to have their financial needs met via our helpful alternatives and progress on their pathway to their financial objectives, whatever they may be.” He also pointed to non-banks’ consistency: “We’re very clear and self-aware in terms of our identities and who we are to the market, and we don’t come and go off the back of quarterly targets or market shifts or changes. We’re there, rain or shine.” Begbie believes the customer experience advantage will drive growth. “From a customer needs and experience perspective, if they’re waiting 17 days at a main bank, it’s appalling,” she said. “Someone shouldn’t have to wait that long to get a decision. I think non-banks – we’ve only got the opportunity to grow.” The shift towards contractor models in the workforce also plays to non-banks’ strengths, according to Mounce. “We’ve seen more and more people changing from PAYE to contractor model, and the two-year financials requirement is still a thing in the banking industry, but it’s not in the non-bank space. People don’t necessarily want to have staff members any more – they quite like having contractors.” Jackson prefers to reframe how the sector defines itself – as a group with special skills rather than one defined by what banks cannot do or choose not to do: “We’re specialist lenders because we specialise in what we do. People, borrowers and advisers are looking for skill and looking for speed. And that’s where we will always play.” In a financial landscape still recovering from years of strain, non-bank lenders are stepping up and actively championing borrowers whose stories are more complex, whose needs are more nuanced or time-sensitive and whose goals are just as valid.

2.21%

Expected annual CPI one year ahead

Quarter

Sep 24

2.25%

Mar 25

2.13%

Dec 24

2.44%

Jun 25

Source: RBNZ Business Expectations Survey, May 2025

Businesses expect inflation to rise

Despite the looser monetary conditions, some specialist lenders still see challenges ahead for the housing market as it heads into the traditionally quiet period over winter. No one expects a return to the steep price increases of 2021.

More demand for credit, more defaults, more liquidations

Sector

Credit demand

Credit defaults

Construction

+3%

+29%

Company liquidations

+50%

Transport

+3%

+38%

+70%

Manufacturing

+13%

+26%

+49%

Hospitality

+13%

+16%

+52%

Property/rental

+21%

+7%

+29%

All sectors

+9%

+18%

+35%

Source: Centrix Credit Indicator report, April 2025

Baldwin Risk Partner

Trevor Baldwin

Mashberry

Phil Trem

Retail trade

+19%

+8%

+3%