As mortgage broking heavyweights lean into diversification, COG Aggregation makes the case for staying in your lane
Why would a broker sign on with COG Aggregation?
As a specialist aggregator, its technology, expertise and lending panel are designed for the specific purpose of writing asset and equipment finance.
Meanwhile, market-leading aggregators like Connective, AFG and LMG have made significant progress in diversifying across the full suite of brokered finance.
Take LMG, which dedicated an entire summit this year to positioning itself as home of the diversified broker. No longer is LMG just for vanilla home loans; it is increasingly meeting the needs of commercial and asset finance too, so went the narrative.
Connective’s asset finance wing has established a commanding presence over the last 10 years, while ASX-listed AFG’s acquisition of the remaining 16.7% stake in asset finance aggregator Fintelligence last year signalled an aggressive expansion into the space.
Put simply, it is becoming easier for brokers to service any type of loan they wish at a single contact point with one of the major aggregators.
Then there is COG Aggregation, proudly a specialist in its field, showing little intention to venture beyond its wheelhouse.
It’s an interesting strategy given how well-worn the diversification discussion is, but COG Aggregation head Mark Rayson (pictured) doesn’t sound convinced that diversification is the right path for everyone.
Sticking with what you know
“We've deliberately chosen to stay in our lane,” Rayson said in an interview with MPA. “We've had plenty of opportunities over the years to diversify out of asset finance into other lending spheres such as mortgages, (but) we've chosen to concentrate on the specialist path because we believe in the long run, each broker, even if they diversify, is going to want the specialist skills.”
But what can a specialist like COG provide that a group like LMG cannot?
For Rayson, it’s all about the specialised systems, processes, quoting mechanisms and genuine knowledge that you can’t get from a jack of all trades. With a singular focus, COG has the advantage of tailoring everything to the asset and equipment finance broker.
For now, the model is working. It is regarded as the leading asset and equipment finance aggregator, touching, by Rayson’s estimations, around 25% of the entire asset finance market and about 45% of the brokered asset finance market.
But there is a downside to COG’s operating model – It is exposed to the cyclical nature of asset and equipment finance, which largely swings in the direction of broader business sentiment.
SMEs contribute about 70% of COG’s volumes, with the remainder sourced from the consumer end of the market.
Given that SME insolvencies approached the top end of the range observed in the 2010s this year, it is unsurprising that COG’s funding volumes were down 5% year on year to $8.4 billion in the 12 months ending 30 June 2025, although this was partially attributed “reduced asset values and the end of Government stimulus”.
In Rayson’s view, “it's not buoyant times but nor is absolutely terrible times... we certainly see some indicators that show us that the SME market is down.”
He believes businesses are still deferring large purchases for now, although “the early signs this year have been positive” following a noticeable dip in the second half of 2024.
When asked how COG intends to return to volume growth amid persistently tough business conditions, Rayson highlighted the 7% increase in brokerages that came under the COG umbrella in the last financial year.
“The things I can control are concentrating on keeping the brokers that we have and supporting them… and expanding the lender panel to make our proposition more available to brokers, to help them find more solutions,” Rayson said.
Regarding that lender panel, the non-bank segment “has really been the growth engine” in the asset and equipment space, said Rayson.
Recent results from the non-bank sector confirm this, with Latitude, Resimac and Pepper Money all announcing particularly strong growth in the auto lending space.
Rayson clearly has his finger on the pulse of asset and equipment finance – you’d hope so, given that industry knowledge is one of COG’s biggest selling points.
There are approximately 780 brokerages, or 1,800 individual brokers, under the COG umbrella, so clearly the sales pitch is working.
It also helps that COG does not restrict brokers from writing with other aggregators.
"Just as I believe (brokers) need a specialist skill in asset finance, if they want to do mortgages, I shouldn't offer them… because it's not my skill set.
“So I have no issue with any of our brokers dealing with any of the other aggregators, and quite a lot of them will have parts of their businesses that do mortgages and insurance. We have absolutely no issue with people searching out alternatives.”
But as the broking industry heavyweights continue to diversify, it will be COG’s job to make sure its value proposition remains attractive enough to keep the wheel turning.
