The MFAA and FBAA need to continue to focus on reinventing themselves as an industry body, after a survey revealed that two in three consumers did not know or did not care that their broker was a part of an industry association.
According to MPA magazine
’s Consumers on Brokers survey, 66% of respondents said that they either didn’t know their broker was a part of the MFAA or FBAA, or wouldn’t care when searching for a broker.
Rael Bricker, managing director of House & Home Loans – and an active member of the MFAA – said that he is not surprised by this statistic.
“No it doesn’t surprise me at all. I don’t think the industry bodies have done enough over the years to position themselves as the body of choice,” he told Australian Broker
According to Bricker, this is because prior to the NCCP, the only regulation in the industry was the industry associations, so lenders implemented the idea of having to be a member of an industry body in order to be accredited.
However, Bricker says the associations now have to focus on reinventing themselves as more than an industry regulator.
“The industry bodies need to generate a perception of value amongst their members… A member needs to feel happy making their annual membership payments; that they are getting some value out of it,” he told Australian Broker
“I know the MFAA is doing a lot of work in what their value add is to members. What will make their members happy to pay the membership, and not just an annoyance that they are paying it because they have to.
“The industry bodies are trying to find their own relevance in the industry and as a part of this, they are going to try and reinvent themselves. Part of that value add and reinvention is the whole consumer awareness story.
“And once the broker market feels confident that their industry body is delivering more than just a way of maintaining their accreditation with lenders, I think that brokers will also be the ones that will be happy to say that they are a member – and generate consumer awareness themselves. Not only is [the MFAA or FBAA] a good regulatory authority for us, but it also enhances our lives.”
Both the MFAA and the FBAA have employed considerable steps in increasing consumer awareness over the past 12 months. Earlier this year, the MFAA revealed plans to launch a Facebook marketing campaign aimed at directing consumers to brokers. Earlier this month, the MFAA also announced a $1 million consumer-focussed marketing campaign at its 2015 convention in Melbourne.
The FBAA has been commited to continually engaging with media across Australia to promote finance brokers and the benefits of using an FBAA member. Over the last month, CEO Peter White
has been featured on television, radio and print media across Australia representing the broking sector.