2021 Best Industry Marketing Campaign
2021 Non-Bank of the Year
2022 Canstar Green Excellence Award
Accolades
Capitalising on growing demand for non-bank finance
Campbell Smith’s CV makes for impressive reading.
He is perfectly suited to lead Pepper Money New Zealand and strengthen its presence in the nation’s small but fast-growing non-bank sector, having worked in senior managerial roles for LeasePlan, Turners Automotive Group, Westpac New Zealand, and Deloitte.
Smith also spent three years working in Valencia, Spain, as a contractor for America’s Cup Management during the 32nd America’s Cup.
He has notched up more than 20 years in the financial services industry and has worked in various commercial functions across mortgages and asset finance.
“More recently, I was actively pursuing a role back in the property finance sector. I admired what Pepper Money has been doing onshore here in New Zealand as a challenger brand. I’ve always been impressed by the real people behind the brand – the calibre, talent, and values they uphold.”
Smith was appointed country head of Pepper Money New Zealand in May 2022. National sales manager Michelle Sargeant moved back to Australia after four successful years in Auckland.
Pepper Money entered the New Zealand market just three years ago, and Smith says his initial plans are to continue to build upon the efforts of the business.
“This extends to continuing to build our distribution footprint, adding value, and improving processes for the financial advisers who have supported us over the years,” he says.
“We’ll invest in new ways to drive awareness and consideration of the Pepper Money brand so more people know what we do – making it really easy for brokers to both understand us and describe our products to their clients. That is, ‘It does what it says on the tin.’”
“Ultimately, my focus across the next two years [is on] three pillars – people, process, and technology – with a view to continue adding value to our broker partners.”
Smith says non-banks are on the rise in New Zealand, as more Kiwis realise they can offer finance solutions that aren’t limited by narrowly defined and often inflexible lending criteria.
“We have seen an uptick in interest from financial advisors since the middle of last year, after we launched a new competitively priced product to shake up the market, and we expect this momentum to continue as mainstream funders’ appetite continues to wane, while the uncertainty brought about by the pandemic dissipates.”
In the current economic climate, the major banks will continue to take a “risk-off” approach to lending, reserving capital only for top-tier customers, says Smith.
“There’s a significant opportunity for increased market share in the non-bank sector, and it comes down to education. Advisers play a big role in bringing awareness of alternative solutions to Kiwi households, and they do so by consistently acting in the best interest of their clients and showing their clients more options.”
Smith says Pepper Money will continue to evolve and listen to the market and adapt to address the pain points that advisers face.
“Some of the borrowers we help include customers who are ready to achieve their goals but who for some reason don’t meet traditional lending criteria. The events of the last two years show that Pepper Money’s real-life approach to lending is needed more than ever.”
A growing non-bank lending sector would bring New Zealand in line with other nations across the world, such as Australia, which has experienced major changes with the growth of non-banks.
“We’re just probably two to three years behind them in terms of the change we’re seeing now. So, we're taking our best practices and our learnings, our key learnings from the Australian market, and being really fast and smart about how we implement that here in New Zealand,” Smith says.
Pepper Money’s real-life approach
Smith says helping people succeed is at the heart of what Pepper Money does, offering New Zealanders a real-life, flexible approach to lending.
At the core of Pepper Money’s value proposition is its credit cascading model, which provides three Pepper Money solutions (prime, near prime, or specialist) to support a high probability of conversion – removing the majority of the showstoppers experienced in a standard submission.
“It’s like having a lender sitting right beside you, assisting you in finding an option based on your needs,” says Smith. “We also take the time to understand each customer’s personal circumstances carefully to make sure they receive the most appropriate product and rate.”
Making life easier for advisers is also important to Pepper Money, with its unique cascading underwriting assessment meaning customers only need to fill out one application to access a range of home-loan products.
“This saves financial advisers the time and effort of reapplying to find the right real-life solution.”
Smith says a suite of digital tools also helps advisers, enabling them to identify available loan products faster and more accurately, while offering a seamless application experience.
Growing the market share for advisers
Most New Zealanders have an association with the retail banks and go directly to them for loans, says Smith.
“There’s a massive opportunity for the financial adviser market to increase their share of market and increase awareness about borrower choice and options.”
Smith says there’s also a golden opportunity to improve levels of consumer confidence in the adviser channel and the non-bank sector.
“Advisers have a role to play in ensuring people are directed toward products that are a strong fit for them. Positioning the value of having an adviser on your side to consumers is key, particularly as economic conditions shift.”
Smith says with higher interest rates pushing up the cost of funds and more financial pressure on households, refinance activity will ramp up.
He suggests advisers carry out a loan health-check with their customers to understand what they’re paying currently, and what they’re estimated to be paying with forecasted rate rises.
“Advising your customers early and giving them a heads-up rather than allowing them to languish – and by doing so avoiding a potential event of financial stress and strain – enables advisers to develop trust and build a relationship for life.”
Spotlight
Non-bank sector in NZ
Smith says the company’s role in the market is to drive consideration and awareness not only of Pepper Money, but of the non-bank sector in New Zealand overall.
The opportunities for non-banks in New Zealand are massive. Many New Zealanders have traditionally relied on the major banks for residential home loans and business finance. But with rising interest rates and tougher lending restrictions, New Zealand financial advisers and their clients are more willing to consider non-banks as an alternative to the big banks.
According to the Reserve Bank of New Zealand, non-banks’ share of home loans was just 1.68% in April 2022, but it is growing: in the 12 months to April 2022, the value of non-banks’ home loans grew from $3.94bn to $5.66bn – a 43% increase.
Pepper Money is one of Australia and New Zealand’s leading non-bank lenders. Established in 2000, the company first launched as a specialist residential home-loan lender in Australia with a focus on providing innovative home-loan solutions to customers who were being underserved by traditional lenders. Today, Pepper Money has a broad product offering of residential home loans, personal loans, asset finance, novated leases, and commercial real estate loans across Australia and New Zealand.
Company Profile
2000
Year established
1,000+
Number of employees across Australia and NZ
327,000
Number of customers served (cumulative since 2014):
18,000+
Number of accredited mortgage advisers
1 in 9
Number of electric vehicles financed by Pepper Money in Australia
Bio
Spotlight
Milestones
Accolades
Company Profile
Years in Industry
2o
Career quote
“None of us is as smart as all of us. As a cohesive collective of individuals, we bring more experience, more knowledge, and more wisdom”
Campbell Smith
Country head, Pepper Money New Zealand
Campbell Smith was appointed country head of Pepper Money New Zealand in May. NZ Adviser caught up with him to discuss the new role and his plans for the company to expand in the burgeoning non-bank sector
Read on
“Ultimately, my focus across the next two years [is on] three pillars – people, process, and technology – with a view to continue adding value to our broker partners”
Campbell Smith,
Pepper Money New Zealand
“There’s a significant opportunity for increased market share in the non-bank sector, and it comes down to education. Advisers play a big role in role in bringing awareness of alternative solutions to Kiwi households”
Campbell Smith,
Pepper Money New Zealand
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Accolades
Spotlight
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
“Ultimately, my focus across the next two years are three pillars – people, process, and technology – with a view to continue adding value to our broker partners”
Campbell Smith,
Pepper Money New Zealand
“There’s a significant opportunity for increased market share in the non-bank sector, and it comes down to education. Advisers play a big role in role in bringing awareness of alternative solutions to Kiwi households”
Campbell Smith,
Pepper Money New Zealand
Career quote
“There’s a significant opportunity for increased market share in the non-bank sector, and it comes down to education. Advisers play a big role in role in bringing awareness of alternative solutions to Kiwi households”
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
Spotlight
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
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
“Ultimately, my focus across the next two years are three pillars – people, process, and technology – with a view to continue adding value to our broker partners”
Campbell Smith,
Pepper Money New Zealand
“There’s a significant opportunity for increased market share in the non-bank sector, and it comes down to education. Advisers play a big role in role in bringing awareness of alternative solutions to Kiwi households”
Campbell Smith,
Pepper Money New Zealand
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MORTGAGE INDUSTRY
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Copyright © 1996-2022 Key Media, Inc.
Companies
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Contact Us
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September 2019
April 2021
May 2021
October 2021
March 2022
May 2022
Pepper Money officially launches in New Zealand
2019
September
Pepper Money celebrates 21st birthday
2021
April
Lists on the ASX
2021
May
Wins Non-Bank of the Year at the Australian Mortgage Awards
2021
October
Launches Near Prime Clear Loans
2022
March
Campbell Smith appointed country head for Pepper Money New Zealand
2022
May
Milestones
September 2019
April 2021
May 2021
October 2021
March 2022
May
2022
Pepper Money officially launches in New Zealand
2013
September
Pepper Money celebrates 21st birthday
2021
April
Lists on the ASX
2021
May
Wins Non-Bank of the Year at the Australian Mortgage Awards
2021
October
Launches Near Prime Clear Loans
2022
March
Campbell Smith appointed country head for Pepper Money New Zealand
2022
May
Milestones
September 2019
April 2021
May 2021
October 2021
March 2022
May 2022
Pepper Money officially launches in New Zealand
2019
September
Pepper Money celebrates 21st birthday
2021
April
Lists on the ASX
2021
May
Wins Non-Bank of the Year at the Australian Mortgage Awards
2021
October
Launches Near Prime Clear Loans
2022
March
Campbell Smith appointed country head for Pepper Money New Zealand
2022
May
Milestones
Media
Media
Media
Media