Asset Finance Limited is incorporated and begins offering lending facilities to customers
1989
At first glance, Xceda’s story might sound like a classic tale of growth – from small-town lender to national player. But behind its rise from a Whakatāne-based personal loans outfit to a Reserve Bank-licensed non-bank deposit taker (NBDT) lies something more deliberate: a strategy built on adaptability, relationship-based lending and a firm belief that mainstream banks are leaving too many borrowers behind.
Founded in 1989, Xceda has transitioned its lending operations into focusing predominantly on mortgages – for both owner-occupiers and investors. To complement the short-term bridging product, it recently launched a long-term property investment loan to fill gaps left by traditional lenders. The company’s agility in loan structures and its collaborative, customer-first culture sets the lender apart from many of its larger competitors.
With regulatory changes being introduced in the deposit-taking sector,
Spotlight
Xceda is a trusted New Zealand non-bank deposit taker regulated by the Reserve Bank of New Zealand, with a proud history dating back to 1989. We were originally established in Whakatāne as a regional asset lender, and over the years we’ve grown into a nationwide operation offering a range of tailored lending solutions – including short-term (bridging) finance and long-term (property) loans. Being one of only a small number of institutions licensed by the Reserve Bank reflects our strong regulatory standing and our commitment to responsible lending. In recent years, we’ve expanded our reach and evolved our brand to better serve the needs of a diverse customer base. With more than three decades of experience, robust governance and a focus on personalised service, we’re proud to continue helping New Zealanders achieve their financial goals with confidence.
Company Profile
40,000+
Number of loans financed since 1989
>$750m
Total lending value since 1989
2
Number of offices
7.5x
Loan and deposit growth since 2018 ownership change
21
Number of employees
Bio
Spotlight
Milestones
Media
Accolades
Company Profile
“As a prudentially licensed deposit taker, we believe Xceda is in a unique position to combine banking services for our deposit customers together with specialist and niche lending capability for our borrowers”
Daniel McGrath, Xceda Finance
“Xceda wants to be a disrupter in the market and has the means, shareholder support and staff to do this. It’s a fast ride with multiple things happening at once”
Darryl French, Xceda Finance
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Milestones
2011
2012
2015
2016
2019
2021
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2012
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2015
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2016
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2019
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2021
Karen Adams
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Milestones
2011
2012
2015
2016
2019
2021
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2012
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2015
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2016
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2019
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2021
Karen Adams
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1989
2004
2015
2019
2021
2023
Asset Finance Limited is incorporated and begins offering lending facilities to customers
1989
Covenant Trustee Services is appointed as trustee to issue secured debenture stock (term deposits) under a debenture trust deed
2004
Receives non-bank deposit taker licence from the Reserve Bank of New Zealand
2015
Opens Auckland office to grow presence in business finance and property lending
2019
Rebrands to Xceda Finance Limited, marking the evolution into a full-service national financial services provider
2021
New Deposit Takers Act commences, introducing a unified regime for monitoring all RBNZ-licensed deposit takers, including Xceda
2023
Milestones
Published 07 July 2025
Find out more
Find out more
Darryl French
Victoria Kernohan
Daniel McGrath
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How one lender is redefining non-bank lending, blending regulatory advantage with flexible solutions to serve borrowers overlooked by traditional lenders and mainstream financial institutions
IN PARTNERSHIP WITH
Victoria Kernohan
Lending operations manager
Built COVID Hardship Policy in days – pivoted fast, supported customers and met all compliance needs
Career highlight
Darryl French
Chief credit risk officer
Responsible for recovery of a $250m bridging book during the GFC, while also relaunching a new lending strategy
Career highlight
Daniel McGrath
Chief executive officer
The acquisition of Xceda back in 2019 was a challenge in an evolving regulatory environment, but has been hugely rewarding
Career Highlight
Executive leaders
“It’s about asking, ‘How can we help?’ and ‘Is it really a no, or just that we need to look at this in another way?’”
Victoria Kernohan, Xceda Finance
Xceda
BDMs in the spotlight
More
Being picked to lead ORDE's distribution team
career highlight
3 years
tenure at current position
25
Years of experience
Tracey Topp
Business development manager
I’ve always built my career on purpose-driven work, supporting people through challenges with empathy, integrity, and practical guidance
Career highlight
Tracey Topp
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Tracey Topp
At Link Financial Group, adviser success in an evolving environment starts with steady support, shared values and a deep belief in the power of client-centric service
At Link Financial Group, adviser success in an evolving environment starts with steady support, shared values and a deep belief in the power of client-centric service
Carlo Wan
Julia Strickett
Sarah Duncraft
Inside Xceda’s challenge to NZ’s major banks
“We want to show advisers that it is frequently easier to work with non-bank lenders than mainstream banks”
Tracey Topp, Xceda Finance
including the recently launched Deposit Compensation Scheme, Xceda is positioning itself as a challenger in New Zealand’s evolving small bank sector.
“The most exciting part of Xceda at the moment is the opportunities that are available in the market, particularly for those institutions like Xceda that are Reserve Bank regulated,” says Daniel McGrath, chief executive of Xceda.
The company’s approach to lending emphasises flexibility and problem-solving, with loan-to-value ratios up to 80% and options for full-documentation, low-documentation and no-documentation servicing verification. This flexibility extends to repayment structures and the ability to workshop deals with advisers to find client solutions.
A recent example illustrates this approach: a client seeking equity release from two investment properties to address immediate business cash flow requirements. Xceda was able to refinance both properties away from a major bank that was reluctant to provide additional lending, structuring the transaction as a 12-month loan that enabled the client to increase the loan-to-value ratio and achieve the required cash-out.
Product evolution and strategy Xceda’s growth trajectory reflects a deliberate evolution from its origins as a personal loans business to its current position as a specialist mortgage lender. The company now operates two core lending products: short-term bridge mortgages ranging from three to 24 months, and a recently launched 30-year Property Investment Loan designed specifically for residential property investors.
The Property Investment Loan, introduced in June 2025, has a loan term of up to 30 years, with the option for interest-only repayments for up to five years. This product addresses what McGrath sees as a gap in the market for property investors seeking alternatives to traditional banking products. This expansion represents a strategic balancing of the company’s loan portfolio, complementing the shorter-term lending that has established Xceda’s market position.
McGrath’s background in corporate and finance law has proved invaluable as Xceda positions itself within New Zealand’s evolving regulatory framework. The company is one of the 14 Reserve Bank-licensed NBDTs, placing it in an advantageous position as the new deposit protection rules take effect.
“On the funding side, as a non-bank deposit taker, Xceda is extremely well positioned to benefit from the new regulations around offering deposits to the public. As we are not funded by a large bank or institutional investors, we have a lot of flexibility in how we lend and to whom, allowing us to focus on the niche areas of the market we believe are underserved by the main banks,” says McGrath.
The introduction of the $100,000 Deposit Compensation Scheme, launched by the Reserve Bank on 1 July 2025, represents a significant competitive advantage for licensed NBDTs like Xceda. While many of its competitors in the investment space lack this protection, Xceda can offer customers’ deposit security equivalent to that provided by major retail banks. McGrath highlights that, in doing so, Xceda can continue to reduce its funding costs in line with the lowering OCR (official cash rate), ultimately leading to lending rates that will become more competitive over time.
However, McGrath remains cautious about regulatory overreach, drawing on recent examples of well-intentioned legislation producing unintended consequences.
“We have seen recent examples where the CCCFA [Credit Contracts and Consumer Finance Act] legislation had unintended consequences of actually limiting customer choices for lending,” says McGrath.
His concern reflects broader industry tension between consumer protection and market accessibility – a balance that specialist lenders like Xceda must carefully manage.
“So we would always encourage regulators to talk to the industry and consult on what unintended consequences might result from new laws and regulations in lending,” says McGrath.
Building the team The company’s growth strategy extends beyond regulatory positioning to encompass a deliberate approach to team building and culture development. Darryl French, chief credit risk officer, has been instrumental in scaling the lending operation while maintaining the agile culture that attracted him to the non-bank sector.
“After working in both the main bank and non-bank space, I established that I really enjoyed the speed and agility of non-bank,” says French. “There is more room to be creative with products and create something amazing.”
Under French’s oversight of the lending team, the company has not only grown its lending book substantially but also developed additional products to support further expansion.
“The culture and belief in what we can achieve is quite infectious. Xceda wants to be a disrupter in the market and has the means, shareholder support and staff to do this. It’s a fast ride with multiple things happening at once,” he says.
Victoria Kernohan, Xceda’s lending operations manager, acknowledges that the market has been tough at times. “Economic confidence remains low, the rental market is flat, and winter always adds an extra layer of complexity. In response, we’re staying creative and solution-focused,” she says.
French’s outlook on the current market reflects the pragmatic optimism that characterises much of Xceda’s leadership thinking. While acknowledging economic headwinds, he also sees opportunity in the company’s ability to work collaboratively with borrowers and advisers.
“We look at any loan application with the view of what solutions can we come up with which will work for both borrower and lender,” says French.
The operations engine Kernohan’s motivation for joining Xceda stemmed from a desire to return to the mortgage space with fresh challenges, and she found in the company a familiar yet distinct operational environment.
“Xceda stood out as a great fit – similar in some ways to a previous company I enjoyed working with, but with fresh challenges and opportunities to grow,” Kernohan says.
Her approach to management is informed by personal experience that extends beyond professional qualifications. As a mother of twins, she has developed what she describes as “octopus skills” – the ability to manage multiple priorities simultaneously while maintaining focus and calm.
“It’s given me perspective on managing daily pressures and helps me stay calm, focused and responsive, which I bring into how I support the team and provide feedback,” Kernohan says.
Her focus on customer-centricity reflects the broader company emphasis on relationship building and solution finding. In a market environment where economic confidence remains low and seasonal factors add complexity, this approach has practical applications. “It’s about asking, ‘How can we help?’ and ‘Is it really a no, or just that we need to look at this in another way?’” she says.
The operational team’s philosophy extends to existing customer relationships, where flexibility and practical solutions must work in tandem with best practice governance and policy application. “We’re also focused on supporting our existing customers through these shifts with practical, flexible solutions,” says Kernohan.
Adviser relations and market education Tracey Topp, business development manager, approaches the market from the perspective of someone who has worked as an adviser. This background provides her with insight into the pressures and responsibilities that characterise the adviser experience, informing her approach to relationship building.
“Having been an adviser myself, I understand the pressure and responsibility advisers carry,” says Topp.
This understanding has practical implications for how Xceda approaches adviser education and support. One of the primary
challenges Topp encounters is the misconception that specialist lending is inherently more complex than traditional banking relationships.
“Many advisers who have not experienced non-bank lending often view it as too complex or confusing,” says Topp. “However, we want to show advisers that it is frequently easier to work with non-bank lenders than mainstream banks.”
Kernohan agrees there is a perception gap.
“We genuinely want to help, and we’re passionate about supporting customers,” she says. “More industry-wide education would help advisers and their customers realise they do have real, flexible options outside traditional lenders.”
In Topp’s view: “I believe increasing education and awareness is crucial to breaking down the stigma around non-bank lenders and helping advisers and clients appreciate the valuable options they provide. We’re focused on staying agile, thinking creatively and being genuinely solution oriented. It’s not just about approvals; it’s about understanding where advisers and clients are at.”
The competitive context The leadership team’s collective view of the competitive landscape reflects both confidence in their positioning and recognition of the challenges facing New Zealand’s financial services sector. French articulates a vision for the non-bank lenders that extends beyond niche market positioning to genuine competition with major banks.
“I’d love to see the small bank sector and also non-banks really challenge the big banks and offer that competition for the consumer which is severely lacking within New Zealand,” says French.
This competitive ambition is grounded in the practical experience of building sustainable lending operations while maintaining the operational flexibility that distinguishes non-bank lenders from their larger competitors. The company’s recent three-year track record of growth provides evidence that the market opportunity is real and accessible.
Kernohan echoes this competitive positioning while emphasising the value proposition that non-bank lenders can offer customers who find themselves outside traditional banking criteria. “Non-bank and small bank lenders play a vital role – we’re here to add value and offer solutions the big five often can’t,” she says.
Looking forward The convergence of regulatory change, market opportunity and operational capability has created what the Xceda leadership team believes is a unique moment for specialist lenders in New Zealand. French sees the company’s recent three-year foundation-building phase as positioning Xceda for more aggressive market expansion.
“Xceda has done a lot of work over the past three years to create the solid foundation to be a market leader in the non-bank lending space,” she says. “We are now primed to compete in the market and better serve those customers within the non-bank space.”
In many ways, this response is a continuation of the agility and relationship focus that distinguished Xceda during its recent growth phase. French’s vision sees Xceda as part of a broader change in the non-bank sector that extends to a broader transformation of New Zealand’s banking landscape.
“Xceda believes we can not only offer options now but will continue to be innovative within this space to give consumers alternatives,” says French.
This ambition requires ongoing market education, particularly around the capabilities and reliability of non-bank lenders.
Topp sees Xceda as a lender that is different but also one that is focused on the right things: “I’m proud to represent a company that genuinely cares and takes a holistic view. While many non-bank lenders offer similar products, we differentiate ourselves through practical, transparent criteria and a focus on what truly matters.”
For New Zealand borrowers and advisers, the emergence of more well-capitalised, regulated players like Xceda signals growing choice in a market traditionally dominated by major banks.
The next phase for Xceda will centre around continued growth while preserving operational agility; scaling lending operations while preserving a relationship-focused culture; and educating advisers and customers while building sustainable competitive advantages – but McGrath sees ample potential for Xceda and the sector to keep on challenging the status quo.
“The specialist mortgage market has a lot of potential growth,” he says. “If you compare the New Zealand market to Australia, their market is roughly five times as large on a proportionate basis. There is lots of opportunity for NZ-grown specialist lenders to grow their market share. And as a prudentially licensed deposit taker, we believe Xceda is in a unique position to combine banking services for our deposit customers together with specialist and niche lending capability for our borrowers.”
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*Auckland and Whakatāne; ^Expected to double within 18 months
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