Q: What is a non bank?

A: A fully registered home loan lender with a wide number of loan options for people who don't fit bank boxes.

For a long time banks were the only players in the home loan lending market. However, many would be borrowers found that for all sorts of reasons, these traditional financial services providers wouldn’t lend them money. So new financial providers, led by organisations like Pepper Money, entered the market to offer alternatives. Hence the name 'Alternative lender'.

Alternative lenders now play an increasingly important role in the financial market, delivering multi-billions of dollars in loans across the world. We’re registered lenders, with loans subject to the same forms of regulation as banks, but with a more flexible set of loan products on offer.

What’s different about the offer – and what lies behind the wide range of home loan products we offer – is the way we assess a person’s individual ability to pay back a loan. We look past credit scores and into a person’s history and life situation to really carefully assess their ability to manage the loan, with each case decided on its merits. It’s the key difference between alternative lenders like us and banks. Where banks are more risk averse, we operate to a risk-based pricing model. So, while someone might be considered too high a risk from a traditional lender’s perspective, we are often willing to take on that risk because we’ve taken the trouble to understand the person. We work to responsible lending practices and take great care to ensure any approved loan suits the borrower and their situation. Providing solutions means keeping it real.

We abide by credit regulations, as well as regulations for money laundering, counter terrorism financing and, of course, privacy. 

Traditional banks are here to stay, of that there is no doubt.

But the market is now much more competitive, offering an increasingly broadening range of products and services on more flexible terms.

Pepper Money is part of a new world of customer focused, alternative lending. A flexible system that understands that real people are not all the same. We’re here to keep it real.