The lender revealed it has begun initial discussions with the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
Pepper Money has strengthened its leadership team as part of the plans.
John Maltby has been hired as non-executive chairman joining from Tandem Bank, as well as David Bowles as chief financial officer joining from Shawbrook Bank, while Bob Golden has been hired as chief commercial office from Close Brothers.
They join chief executive officer Laurence Morey, chief financial officer Warren Justice, chief operating officer Richard Spinks and managing director Colin Snowdon (pictured), who will transition to a strategic advisory role in 2019.
Morey said it is an exciting time for Pepper as it looks to convert its specialist lending platform into a leading specialist bank.
He added: “It will enable Pepper to expand the range of solutions we provide to our core customers – including people with complex incomes, the self-employed, those who fall outside high street credit scoring, first- time buyers and buy to let landlords – as well as securing more diverse funding sources for the business in the form of retail deposit funding.
“We will also be considering targeted acquisitions to further the range of solutions we can provide for our customers as part of our growth plans.
“I am delighted to welcome John, David and Bob to the firm. It’s a tribute to the strength of Pepper’s achievements that we have been able to attract such high calibre individuals and I look forward to working with them all.”
“I’m also delighted that Colin Snowdon has agreed to extend his involvement with the firm. Colin has led the creation of Pepper Money as a specialist lender and built the business into what it is today – a much respected and admired lender in the market – for which he deserves our gratitude. I look forward to continuing to work with Colin.”
Snowdon added: “It’s been a privilege and pleasure to lead the growth of Pepper Money over the last two and a half years, from its first steps through to its current leading position as a specialist lender, focused on the growing number of interesting customers.
“Our success has been down to a great team and to strong support from distributors, brokers, funders and our shareholders. Their backing has enabled us to build the foundations on which to build a strong bank.”
