Asset finance leader reports record results despite global headwinds

Huge broker volume growth for COG Financial Services Limited

Australia’s biggest asset finance broker and aggregator, COG Financial Services Limited (ASX:COG), parent of Platform Finance and Consolidated Finance Group, has reported a record 12-months as asset finance demand continues to boom.

In FY22, COG recorded record broker volumes: they jumped 30 per cent to $6.7 billion, compared with $5.1 billion in the previous financial year. “That’s astounding growth. It really shows how resilient the sector is and that a record number of businesses invested in new vehicles, equipment and machinery during the year,” says Ryan Young, Platform Finance CEO.

“The sector has truly defied expectations that the pandemic would throttle asset finance. Transport, construction, agriculture, forestry and infrastructure/civil works have all been performing strongly, which has led to a surge in asset purchases. Consumer lending has also been buoyant over the year, with people purchasing private motor vehicles, caravans and boats, spending on home improvements, and consolidating debt.”

COG now has a 21 per cent share of the market, which means one in five assets financed during the last financial year was arranged by a member of the group. “Despite supply chain disruptions, fuel concerns, border restrictions and other global ructions, demand for asset finance has grown year on year, as demonstrated by our results over the past six years. And in the past year alone, our broker network outperformed the market by at least two-times, which really proves we are partnered with the best. This both reflects and reinforces our commitment to helping them succeed and take market share, and it gives us the confidence to redouble our investments in the sector.”

COG’s scale enables it to continue investing in three key areas: technology, staffing and product. Young points to Westlawn, the group’s in-house finance company, as a perfect example. “Our scale allows us to make this a fully-fledged finance company rather than just another while label – and it’s exclusive to our broker network,” he says.

Westlawn provides a three-fold benefit:

  1. Providing an extra option to COG brokers;
  2. Filling gaps in the group’s lending panel;
  3. A key point of difference is that Westlawn is deposit-funded, which means it isn’t constrained by wholesale funder policies and can lend money where it makes sense to do so.

“The more our brokers grow, the more we can grow that service,” says Young. “The same dynamics apply to staffing, complementary products (e.g., novated leases, car buying and insurance), and to technology. COG is fully focused on asset finance – and if this run-rate continues, it means we can continue to invest and provide our brokers with more and more of what they expect and need to boost productivity and separate themselves from the competition.”

Asset finance emerges from the shadows

Young says the results also show that asset finance “has finally come out of the shadows”. “Asset finance has always been strong, but the sector has largely been invisible. Not only does COG give the sector an identity, but our results also highlight the strength of the market and show other investors, including funders, that this is a sector worth investing in,” he says.

“There have been some interesting trends in recent times, including an increase in mergers and acquisitions. We are certainly on the acquisition trail to identify more opportunities to further grow our broker network and continue to enhance our service offerings for both COG brokers and independent network member brokers.”

Media Release: Platform Finance on target for record year

Strategic changes announced for growth and broker support 

Australia’s leading asset finance aggregator, Platform Finance, is on target for a record 12 months thanks to a strong “trio of factors”. And the company has announced some strategic changes to further grow the business. 

“We’ve risen to the pandemic challenges,” says Damian Mantini, Platform Finance’s Director Aggregation and Strategic Partnerships. “Despite the global supply chain issues, Platform Finance has grown significantly during this period.” 

The growth is borne out by Platform Finance’s record results for May this year. “In our strategic partnerships part of the business, we experienced a growth rate of 50% compared with May 2021 – an all-time record. And while last financial year was a record year for us overall, we have already surpassed those numbers. These results are testament to the hard work our team members have put in with the broker network and their customers.” 

Mantini points to three key factors contributing to the growth: a huge surge in demand for asset finance, Platform Finance’s diversified product offering, and its enhanced support for SMEs. 

“Our SME lender panel is now even stronger than ever to support commercial asset finance customers and brokers, while in the consumer space we’ve been able to grow our personal loan offering for our brokers’ clients,” he says.  “We’ve been working closely with our brokers as they prepare their market strategies for EOFY, which has also led to the record results in May.”  

And while Mantini says all asset sectors have been performing well, one of the strongest performers has been in private motor vehicle sales. “One of our focuses has been on helping brokers and their customers navigate this area, which has seen it grow significantly,” he says. “The instant asset write-off has certainly had a major impact, particularly in May and now in the lead up to the end of financial year.”  

Damian Mantini, Director Aggregation & Strategic Partnerships
Scott Thomson, National Sales Manager

Sales team to double

The strong results means that Platform Finance is increasing its sales and operations teams over the next six months, and it has appointed a new National Sales Manager, Scott Thomson, who joined the group on June 14, to continue to drive the growth.  

“Scott is an awesome addition to the team. We have worked with him for several years in his most recent role as relationship manager with Pepper, and he’s culturally very well aligned to the Platform Finance values. He’s worked across lending, aggregation – and he’s been a broker. Scott has a deep understanding of the asset finance market, both in the consumer and commercial sectors, and his experience and expertise mean he’s well prepared to lead the sales team into our next phase of growth,” says Mantini. 

“Scott will continue to execute on our strategic objectives of growing the business. He’ll be doubling the sales team and will also expand our operations team, which has already grown by 30% this financial year.”  

In addition, Platform Finance will be making further improvements to its systems and processes as well as marketing and education. “These will be the cornerstone of our ongoing improvement plans in the new financial year,” adds Mantini. “We expect more brokers to diversify and get into asset finance as the home loan market conditions change. In our 12 years of providing services to brokers, we’ve seen this trend before and are prepared to assist brokers to understand asset finance and engage with it with confidence. The number of brokers actively engaging with us has grown significantly over the past 12 months. With issues like supply challenges, more private sales, rates moving, and the sheer number of funding options available, brokers are increasingly seeing the benefits of partnering with an asset finance specialist.” 

Looking to the new financial year, Mantini says interest rates in the asset finance sector will continue to trend upwards and supply chain issues will continue. “We operated in an unusually low-rate environment for an extended period, so we’re certainly managing and resetting customer expectations. And on the supply chain challenges, it’ll mean customers will need to pre-order motor vehicles well in advance. Despite these challenges, our team is here to help support our brokers.”   

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