Pepper Money first non-bank lender to be approved as an AFIA Finance Industry
Code of Practice member

The AFIA Code promotes higher standards, ensuring clearer disclosures and delivering stronger protections for customers. It will take effect from 1 October 2026, following a transition period to allow AFIA members to align their systems, policies and practices with the commitments and standards in the AFIA Code.

AFIA CEO Diane Tate said the AFIA Code reflects good industry practices, lifting standards across the industry, providing greater consistency and better customer protections.

“The AFIA Code puts customers first. It is designed to ensure positive outcomes by promoting good industry practices, supporting compliance with legal obligations, and strengthening trust and confidence in Australia’s finance industry. Pepper Money’s decision to sign-on early demonstrates how responsible lenders already operate to high standards and are committed to continuous improvement in their DNA. This serves as an example of the significant impact the AFIA Code will have on raising standards throughout the industry," said Ms. Tate. "As additional members join by 1 October 2026, its influence will continue to grow."

Pepper Money, along with other non-bank lenders, have been instrumental in shaping the AFIA Code through its active participation in multiple code working groups, and its commitment is further reflected in CEO Mario Rehayem’s service as AFIA Chair since March 2024.

Mario Rehayem, CEO of Pepper Money said signing the AFIA Code formally reflects Pepper Money’s long-standing approach to lending.

“For more than 25 years, Pepper Money has built its reputation on really helpful, responsible lending. By formally signing the AFIA Code, we’re reinforcing the customer first standards that already guide the way we lend. This is about strengthening protection for customers and raising expectations across the non‑bank lending sector.”

Why this matters: the growing impact of non-bank lenders

The AFIA Code’s introduction comes as non-bank lenders play an increasingly important role in delivering competition, choice and accessible finance for Australians.

Recent data highlights this shift:

Other key findings from AFIA’s recent RNBL Report include:

• Early-stage arrears remained low at 0.67%, which is comparable to major banks at 0.58%.
• 90+ day arrears were lower for non-banks (0.81%) compared to major banks (1.10%).
• Over 80% of all hardship applications received by RNBLs are approved, demonstrating their commitment to support customers experiencing financial hardship.

Non-bank lenders are a disciplined part of the financial system – they're licensed credit providers, consumer-regulated and operate with frameworks administered by multiple regulators, including the Australian Securities and Investments Commission (ASIC).