What's in a name: Credit adviser, mortgage broker, or finance broker?

by Mackenzie McCarty13 Sep 2013

The MFAA has announced the launch of a consumer advertising campaign, starting next week, which advocates referring to its members as ‘MFAA approved credit advisers’, rather than ‘brokers’ – a move the group says reflects the new accreditation and value provided by its members.

However, FBAA president, Peter White, says the move could simply lead to borrower confusion and inaccurate generalisations.

“All brokers are credit advisers as such and I think it’s sort of creating [the impression] that others in the industry are not…I’m more against the fact that they can’t be called professionals, but that’s another argument again.

“I think it causes confusion for the consumer. And the reality is that, at the end of the day…we talk about mortgage brokers, but they’re finance brokers. A mortgage broker is, in actual fact, somebody who has a very limited scope and knowledge because all they know is mortgages. A finance broker is someone who should be able to deal with any sort of finance; it’s what the greater industry is.”

Naylor, who issued a notice to MFAA members earlier this week regarding the proposed name change, admits that the switch will take time and says the organisation is providing assistance to those interested in rebranding themselves as credit advisers.

“We recognise that the shift from ‘broker’ to ‘credit adviser’ will not happen overnight and will require some education to ensure that property investors and businesses clearly understand what a credit adviser does.”

To help you promote yourself to clients, we’ve created a logo which incorporates the new ‘credit adviser’ term, as a replacement to the ‘Approved Broker’ logo. However don’t panic if you already have the ‘Approved Broker’ logo on your business cards and stationery, because there is no requirement for an immediate change.”

In the meantime, White hopes the term doesn’t stick.

“I think it’s a dangerous thing to categorise yourself as being one thing…in a marketplace that’s become highly competitive. We know there are at least 34,000 odd people in this game now and if you want to specialise in something, that’s fine; but if you want to be there as a broader practitioner…then you really want to be known as a finance broker.”

We’d like to hear what you think of the proposed name change – give us your arguments in the comment box below.


  • by Regional Broker 13/09/2013 10:18:15 AM

    I am a proud MFAA Member with a credit adviser status , I am proud to have that on my business card and have LOGO on my business car , this Accurately reflects my licence standing as well.
    Really is this comment just pedantics?

  • by Wilko 13/09/2013 10:22:57 AM

    What if I dont deal in commercial finance? Finance broker would then seem innapropriate. Should I just be a consumer credit adviser? or maybe a home loan credit adviser.

    Credit adviser is fine and finance broker is equally as fine.

    You say tomatoe I say tomato. It is how you represent yourself that the customer really cares about and who knows they might just call you by your first name?

  • by Chris G 13/09/2013 10:23:17 AM

    I think its a good change. The name is more relevant than 'mortgage broker' and helps potential clients to perceive that we are here to advise and help them. It highlights the value we add to their decision.