We began life as a financial services provider to people in financial difficulty. Today, with more than 160,000 customers throughout Australia and New Zealand, we continue to focus on helping people get their finances back on track and achieve their goals.
In 2016, we embarked on the next chapter in our growth story, with the launch of a range of products to our customers. Ultimately, our aim is to help customers achieve home ownership, using loans we will broker back through our valued banking partners.
At the time of purchase, the price paid is generally determined by a tender process in which participants perform their own due diligence and determine the price they are willing to pay.
Existing in-house knowledge of the portfolio under offer or similar equivalents is utilised along with a consideration of macro and micro economic factors assessed using the experience of senior management.
The sale of debt portfolios is highly regulated and Pioneer invests in best practice compliance processes, quality customer service and utilises data analytics processes to deepen the understanding of portfolio characteristics. This investment as well as the depth of vendor relationships developed over time have positioned Pioneer with access to the vendor panels of all of the ‘big four’ banks.
Pioneer does not purchase lower quality and quick liquidating telecommunications, utilities or pay day lending accounts.
Pioneer’s customers are regarded as Tier 1. That is, they were not credit impaired when originated.
- Fixed Schedule Payment Arrangements – whereby agreed periodic payments are made until the account is closed with interest at an agreed rate; and
- Non Scheduled Payment Arrangements – whereby the customer agrees to pay but does not commit to a fixed schedule.
In both cases, Payment Arrangements are tailored to the customer’s situation and managed by a Specialist Customer Service Team.
- Investment in unsecured retail debt portfolios; and
- Working with its customers over time so that they can meet their obligations and progress towards financial recovery.
Pioneer’s objective is to work closely with these customers who – for a range of reasons – have found themselves in financial difficulty. In the great majority of cases this has come about through a significant life event such as loss of job, serious health issues, marriage breakdown or domestic violence.
A key goal at Pioneer, is to see their customers achieve financial recovery and evolve as a ‘new consumer’.
Due to our unique approach, across the entire portfolio, our overall return is evaluated and managed on a return multiple to the acquisition investment. Our financial performance is evaluated on a total return basis.