Sponsored Content: Pepper Money

Pepper Money Technology Streamlining Solutions

Increasingly, leading non-banks like Pepper Money are building systems designed on the basic understanding, that technology is ever-evolving and that tomorrow, what was the norm today, may need replacement or an upgrade. They are flexible, nimble, more able to adapt quickly and launch new solutions to meet the rapidly evolving needs of clients, and advisers.

National Sales Manager, Michelle Sargeant says Pepper Money is committed to creating platforms that are designed with financial advisers and their client’s needs in mind. “We want to create an experience that is as effortless and frictionless as possible and are determined to minimise the administrative work involved in complying with industry regulations. We want financial advisers to focus on what they do best - finding financial solutions for families, and in the case of Pepper Money’s alternative lending products, offering mortgages to Kiwis who don’t fit the criteria of the main lenders.”

With the changing lending landscape and economic impacts of the global pandemic, Ms Sargeant says chances are many clients that have never needed to consider an alternative lender in the past are now finding themselves needing a specialist solution. “More and more borrowers need a little bit of personal attention to fully understand their situation. Non-banks like Pepper Money provide that,” says Ms Sargeant.

Making life easier for advisers is an important part of what sets Pepper Money apart. Ms Sargeant adds: “So we developed the Pepper Product Selector (PPS) – an innovative online tool, that lets brokers assess borrowing capacity and see indicative home loan rates quickly and easily.

In less than five minutes the tool can locate the right Pepper product, by simply answering a few quick questions about the client.”

The Pepper Money Product Selector can assist in removing some common roadblocks and provides the financial adviser and their customer with more certainty. Within five minutes, the tool does a comprehensive credit check, borrowing power calculation, and puts all the information through an algorithm decision engine to identify a Pepper Money home loan product, interest rate, and fees. This solution also comes in the form of an indicative offer which can be submitted with the application, shared with the client, and used as the adviser’s record of the customer’s requirements.

The Pepper Product Selector allows financial advisers to demonstrate their value as a trusted source for their customers. Not only can they give their customers the confidence of the rate available to them along with the maximum LVR, fees, and loan amount on offer against the security, but they can have deeper conversations with their clients about their goals. According to Ms Sargeant, conversations like what they are looking to achieve, if they are thinking of growing their family, what the next 5 plus years look like - so that they can ensure the solution they put forward supports the customer into future, and they are catered for on all parts of that journey.

“Financial advisers have found that this holistic approach and having the loan information upfront has assisted clients in feeling more comfortable with the transparency and certainty provided in the process.”

How can financial advisers help their clients with Pepper Product Selector?

“At Pepper Money, we believe that clients should never be in a position where they do not understand their financing options, regardless of their circumstances. That is why the Product Selector was created - to help financial advisers source the best-fit Pepper Money home loan solution for their clients, the first time,” says Ms Sargeant.

s Sargeant explains the three key steps to providing a home loan option through Pepper Product Selector:

Step one. Exploring the client’s financial needs

Whether they have an adverse credit history or non-standard income – Pepper Money knows real life happens, and sometimes a client's individual circumstance can impact their ability to get the loan they need to achieve their goals. The client interview is the ideal opportunity for a financial adviser to uncover their story, and better understand their needs and goals, now and in the future.

Step two. Finding a loan option

Once the adviser has addressed the key parts of their research, they can move on to finding potential loan solutions. With the client’s written consent, Pepper Product Selector can quickly and easily help the adviser understand if a Pepper Money loan is a good fit. It follows Pepper Money’s Credit Cascading Model, which provides three Pepper Money solutions (Prime, Near Prime, or Specialist) with a high probability of conversion – removing many typical roadblocks experienced in standard submissions.

Once the adviser has accepted the T&Cs, Pepper Product Selector automatically requests a copy of the client’s credit record from the Bureau. This leaves an enquiry on the client’s credit file but will not adversely impact their credit score. It then combines this with some simple information about the client and returns an indicative Pepper Money home loan solution - including information on whether the client can afford the loan.

Step three. Presenting a Pepper Money home loan

When advisers have confirmed that the client’s scenario passes serviceability and are comfortable that the solution will provide a benefit to the borrower, they can present the Pepper Money loan option to the client.

When positioning a non-bank loan option, advisers need to work with the client to help them understand why they are not eligible for a loan from a traditional lender at this time. This includes clearly outlining how the product meets their needs and what their financial obligations will be. It helps to put this information into context for the client by showing repayments based on their pay cycle and showing that they can afford the loan.

Once the adviser has shown them how this solution can help put them on the path to achieving their long-term goals, they simply need to confirm whether the client is happy to proceed with the proposed solution and submit an application when ready.

“Since launch, we’ve optimised Pepper Product Selector and consulted with advisers who regularly use the tool to meet their expectations. We will continue to do this as well as evolve and listen to the market to understand the industry-wide pain points that financial advisers face in their interactions. This continued investment in technology will give borrowers a seamless, effortless experience and it will help set financial advisers up for the future,” she concluded. ✚