25 years and counting, Pepper Money burns brighter than ever before

Very few alternative lenders can claim to be a household name, but Pepper Money is as close as it gets.

Whether that’s down to its distinctive branding, partnership with the Wests Tigers, or sheer staying power, the ASX-listed group has become synonymous with Australia’s thriving non-bank lending scene since Mike Culhane founded it 25 years ago.

But if Pepper Money’s star has only shone brighter, chef executive Mario Rehayem is not one to claim the limelight. Instead, Rehayem acknowledges that Pepper Money's success is the story of mentors, brokers, team members and leaders that came before him. 

Perhaps that reflects his self-made career trajectory from a humble broker to the apex of Australia’s alternative lending industry.

“I guess I've always been an ambitious person,” Rehayem told MPA in a discussion on Pepper Money’s 25th anniversary.

But did he ever think he would be the CEO of Australia's premier non-bank? “Probably not. But I knew that the attitude and the manner in how I work, which was always very passionate, emotionally driven... that was in my mind going to give me some firm of good destiny."

Although Rehayem took the long route up the corporate ladder, he certainly didn’t do it alone. Rather, Rehayem had very strong mentors “that in most cases saw something in myself that I didn’t even see in myself”.

He always makes sure to let them know who they are – and he makes sure to pass it forward at every opportunity, especially in the corridors of Pepper Money’s 800 team member-strong corporate ecosystem.

“We invest in our people heavily, because I know what that outcome looks like,” said Reyahem. “I know I'm a beneficiary of that. So that's something that we hold very true to our values here at Pepper… these businesses don't get created with one person or an individual.”

Like any good leader, Rehayem understands his faults as much as his attributes. His self-described “inner mongrel” and high level of attention to detail fall into the latter category, but he admitted to not being a great delegator in the past.

“My biggest shift in my leadership style is that I've come to a reckoning with regards to making sure I delegate well and empowering and trusting the staff to get their job. That's why we've hired them,” he said. “We've hired them for their capacity and for their skill and their flair and their own way of doing things. So let them be, let them go.”

To give a bowling analogy, a good leader, in Rehayem’s view, only brings the guardrails out when they’re needed. “But let them throw the ball. Let them have a crack.”

Building on strong foundations

Rehayem has not seen a massive cultural shift in his eight years as the boss. He attributed this to the succession of high-calibre leaders that came before him who have instilled the right values in the business.

But Rehayem has endeavoured to emphasise a non-hierarchical structure at Pepper Money that gives everyone a voice.

“We run a flat structure,” he said. “Yes, there is title… but my door is always open. I'm always hanging out with the sales teams, the credit teams, operations.”

Equally important to Rehayem is spending hands-on time with the tools of the trade, “so I can actually know what it's like to be a customer assist officer or a credit officer”.

His biggest focus, however, is customer centricity. “There has been a significant shift in that area. I've asked a lot from the business and the people of the business. We've turned the place upside down, practically reviewed it ceiling to floor.”

Despite all the talk of flat structures and democratic work cultures, Rehayem is evidently not an easy-go-lucky leader.

“We have a very strong rule – people will always tell you I'll unashamedly work them hard but I'll always respect them, recognise their efforts and reward them for it.”

It all comes down to sniffing out the right talent. “If you get the people piece right, everything else falls into place. So surround yourself with the right people. When you're hiring, be very strict in the way that you hire. Look for good morals, ethics, as opposed to just skill.”

From fringe to force: Non-bank star rises

Rehayem’s career success has run in parallel with the success of the non-bank lending industry.

Over 25 years, disruptors like Pepper Money have changed the game for mortgage finance, evolving from what Rehayem called an “embryonic fringe stage to now a force to be reckoned with”.

“Non-banks were known historically as the lender of last resort,” Rehayem said. That's certainly not what it is today – just take a look at Pepper Money’s $20.1 billion and counting in assets under management for proof.

Looking back at the industry’s success, Rehayem put it down to assisting customers that were shunned by the traditional lenders.

He said: “We have significantly assisted customers that would never have been able to enter into the housing market, or purchase their van for their self-employed business…  These customers have gone from ‘no one wants you’ to now having their first home, second home, third home.”

It’s the customer experience, coupled with the deep understanding of brokers from which almost all volume comes from, that has propelled not just Pepper Money but the industry as a whole.

As Pepper Money celebrates 25 years and counting, it remains deeply committed to the broker channel that has been foundational to the company's story.

“Our success comes down to our deep understanding of our distribution partners – and a genuine commitment to listening and acting on their feedback. We invest in their tools, technology, and knowledge to ensure they can confidently serve customers who might otherwise be overlooked," Reyahem said.

Speaking to a packed audience of distribution partners, shareholders, funders, technology partners, industry associations and trade media at Machine Hall on Wednesday, Rehayem laid out Pepper Money’s mission to the 150-strong crowd.

“From our humble beginnings to a trusted name in lending, this milestone is a tribute to the people, partnerships, and purpose that have shaped our journey.

“We’re committed to continuous improvement and delivering the X factor for our customers, partners and people. Our focus remains on closing the gap in financial inclusion, ensuring that all Australians have access to the lending solutions they need.

“Our goal is to stay trusted and humble while expanding financial inclusion. In the years ahead, we’ll broaden our products, reach untapped markets, and continue being known for trust, innovation, and helping people succeed.”