Prospa's Paul Evans gives the lowdown
As the year comes to a close, MPA catches up with the biggest names in mortgage finance to get the lowdown on the year that was, while looking towards the year ahead.
In this installment, Paul Evans, non-bank lender Prospa’s national sales manager, discusses the impressive resilience of SMEs in 2025, while looking forward to a year of innovation in 2026.
What were the SME trends that defined the industry in 2025?
SME owners faced a year of tight cash flow and increasing personal stress. Independent research commissioned by Prospa found that a third of SMEs operated with a month or less of cash reserves; half of those (15% of the survey) had none. Confidence stayed high, with over two-thirds of SMEs confident they would remain cash flow positive, showing resilience and future optimism.
Day to day, we saw SMEs and brokers rely more on efficient digital tools and embedded finance to make informed decisions quicker, while monitoring rate-related headlines and policy changes from lenders and regulators.
What were some of the biggest highlights for Prospa over the year?
2025 has been a great year for Prospa.
A standout milestone: we lifted the maximum Prospa Business Loan amount to $1 million – giving growth-ready businesses more headroom to invest – with that limit reflected in our end-of-year campaign messaging.
On the growth and innovation front, Prospa IQ matured quickly in the broker space. Roughly $450 million was quoted via IQ in its first six months, and quarterly reports showed substantial growth in quotes and settlements through this channel. Behind the scenes, we completed a major re-platforming of our tech stack (July) and continued to build a workplace people are proud of –reinforcing our Great Place to Work credentials.
Looking ahead, what factors will influence the SME space in 2026?
There are some small but important changes to the landscape. The mandatory SMS sender‑ID registry in July 2026 and the proposed Credential Protection Register later in the year will quietly raise the bar on identity checks and fraud prevention – helping keep customer communications and onboarding secure as ID fraud trends upward.
The bigger story, though, is practical innovation. SMEs and brokers are leaning into embedded finance, payments, and smarter decisioning tools that strip out friction – areas Prospa is actively investing in. Faster decisions, clearer value, and more ways for businesses to manage cash flow without compromising compliance.
Are you optimistic for the sector, or do you expect headwinds to prevail?
Cautious optimism. Late‑2025 research from Prospa showed 69% of SMEs remained confident in cash flow over the next 12 months, and 31% intended to access external funds, signalling that many owners are planning, not pausing. That resilience, combined with brokers’ growing use of smart tools, points to a sector that’s learning to move faster – even when conditions are mixed.
The headwinds are real: Compliance expectations are rising, fraud risk requires proactive controls, and policy cues can influence demand and affordability. But with better tech, sharper risk settings and strong broker‑customer trust, I’m confident the SME economy can keep unlocking growth.
Are there any major milestones coming up for Prospa in 2026?
We’ll continue improving our payments strategy while evolving our service offering to help partners work more efficiently with Prospa.
By providing real-time decisions and quicker solutions for their customers, we’re expanding the Prospa Partner App and decisioning tools like Prospa IQ to make broker workflows simpler and faster.
Internally,the focus remains on profitable growth – using the FY25 re-platforming and FY26 product roadmap to foster innovation and create meaningful impact.
How are you personally spending the Christmas season?
After a busy year, I’ll spend time with loved ones and continue my tradition of visiting Queen Victoria Market on Christmas Eve for coffee and fresh seafood. Each visit fills me with joy as I see so many passionate market retailers devotedly helping their Christmas customers.
On a personal level, what were your career highlights over the year?
I usually prioritise the journey rather than the destination. While I’m extremely proud of our business growth, what matters most to me is the development within our BDM team. The individuals who have grown will continue to create opportunities for our partners and customers. I feel fortunate to work alongside so many remarkable people and look forward to what we can accomplish together in 2026.
