Network bans brokers from using WhatsApp: 'They think we work in 1996'
A NETWORK has banned its mortgage brokers from using WhatsApp in a move slammed as “bone-headed”.
The network claims the messaging app is not secure and its informal nature could mean comments made are interpreted as advice without being properly recorded - falling foul of Financial Conduct Authority (FCA) regulations.
It also says it is difficult to upload client conversations to CRMs.
WhatsApp is the most popular messaging app in the UK with nearly 40 million users - a total of 76% Brit adults have used it in the last three months.
One mortgage broker, who spoke to Newspage anonymously, said he is looking to leave his network after being told to stop using WhatsApp
They said: "I completely understand the compliance concerns around WhatsApp – advisers do need to be mindful that anything written could be construed as advice, and the FCA expects full record-keeping.
“But to outright ban it, when it’s the single most widely used communication tool in the UK, does feel commercially naive. Clients expect convenience, and in 2025 that means WhatsApp.”
They added: “For me, being told exactly how I must run my business, down to which tech platforms I can and cannot use, crosses a line. I’ve built my firm on efficiency and client service – and if that means using WhatsApp or other tools my clients prefer, I should be able to do so. These heavy-handed restrictions are a big reason I’m now looking to leave my network altogether.”
Rhys Schofield, Protection Adviser at Belper-based Peak Mortgages and Protection, said the move away from WhatsApp has more of a place in the 1990s.
He added: “Another day, another network thinking we work in 1996. The reality is that whether networks like it or not, customers use WhatsApp and rather than provide a framework and rules for advisers on how to use it safely, the knee jerk response of banning it is a bit bone-headed and will cost their ARs business.
"Networks and compliance should be about supporting advisors to embrace opportunities in a safe way, not purely operate as the old-fashioned business prevention unit.”
Rohit Kohli, Director at Romsey-based The Mortgage Stop, said the move misunderstands communication in 2025.
He continued: “Banning WhatsApp is the wrong approach. Networks should be working with firms to find compliant ways to use the channels customers actually prefer. Just blocking tech that millions rely on is short-sighted and outdated. We use WhatsApp for basic communication, not advice - and clients appreciate the speed and ease.
"The idea that all conversations must fit neat CRM uploads misses how people actually engage in 2025. If a network’s answer is to restrict tools instead of training and oversight, it raises bigger questions. What’s next - pre-written scripts for every interaction?”
Daniel Hobbs, CEO at Rayleigh-based New Leaf Distribution, said: “What’s next? Ban texts? Ban phone calls? Communication is vital to keep clients updated and WhatsApp is a fantastic medium for advisers. This sounds like another network wanting to control data end-to-end but for any network to flourish you need to allow a bit of flexibility and trust your membership to do a great job.
"Whilst new tech can be great, introducing “bespoke” or mandatory tech solutions to customers and advisers can be a drain on resources and potentially a barrier to doing business.”
Marcus Wright, Managing Director at Bolton-based Bolton Business Finance, said: “Ironically from a security point of view, WhatsApp is more secure than email, as it's end-to-end encrypted, which most email is not. Although I tend to agree, the informal nature of WhatsApp is not ideal for making finance arrangements, which is why I personally try to stick to email.
"Ultimately, we must do what is right for the customers and many expect quick and easy ways to communicate with us. Having a separate Business WhatsApp account linked to a CRM (which is easy to do) would be a better compromise.”
Though Kundan Bhaduri, Entrepreneur at London-based The Kushman Group, defended the network's decision.
He added: "This network has made the right call, even if it feels commercially suicidal in 2025. WhatsApp may be ubiquitous, but it is also unregulated, unauditable, and utterly inappropriate for financial advice conversations. The moment a broker responds to ‘Do you think I can afford this mortgage?’ on WhatsApp, they have created an advice trail that exists outside their compliance framework.
"The FCA would have a field day with that kind of informal guidance masquerading as casual chat. Clients expect instant responses and reassurance on texts, but mortgage advice is not pizza delivery.
"It needs a documented process, recorded conversations, and audit trails that can survive regulatory scrutiny. Any broker worth their commission should understand that protecting client data and maintaining professional boundaries trumps convenience every time. WhatsApp conversations disappear, get screenshotted out of context, and can create liability nightmares."
