Two Million People Are Now Managing Their Money On The Web Dispelling Fears Of Internet Security

• 2 million people transacting on line - over 11% more than 6 months ago
• More than one in ten adults in the UK (6.3 million people) have used the internet in the past 12 months to seek information about financial services
• Buying general insurance and credit cards are the most popular transaction

Boom and bust in the internet industry and constant fears about security have done little to prevent the rise of people buying financial products on line according to a new MORI Financial Services poll commissioned by Screentrade, the UK's first on-line insurance supermarket. 2 million people are now purchasing or arranging their finances on line, an increase of 11% from just six months ago.

The research by Screentrade, carried out every six months to chart the changes in Internet use amongst consumers, also shows more than one in ten adults in the UK, (6.3 million people) have used the internet in the past 12 months to seek information about financial services.

Purchasing car, home or travel insurance is the joint most popular choice alongside credit cards at 11%, followed by current or savings accounts at 10% and dealing in stocks and shares on-line at 6%, among those that have used the internet to seek financial information in the past 12 months.

Paul Charles, Editor-in-Chief of Screentrade said: "Despite stories about security and Internet start-up failures, this research shows that the Internet has become a compelling alternative to buying on the high street or over the phone. Two million people have woken up to the ease and convenience of comparing the best insurance and finance deals on the Internet and then buying on-line. This research ties in with our own figures, which show Screentrade sales rising by 25% every month since January."

Lack of access or knowledge as the main reason for people not using the Internet for their personal finances fell, from 53% six months ago to 21%*. Ease and convenience remains the biggest driver of Internet use for 50% of users followed by accessibility at 10% and the fact that there is no pressure to buy at 7%.

KEY FINDINGS

• 32% of people questioned say they currently use the Internet, compared to 26% six months ago
• 6.3 million people have used the internet to seek financial product information with 2 million people subsequently transacting on-line. Of these
• 11% have purchased car, home or travel insurance
• 11% have arranged a credit card
• 10% have used the internet to arrange their current or savings accounts
• 6% have arranged stocks and shares on-line
• 2% have invested in an investment product such as a Individual Savings Account or unit trust
• 2% have taken out a personal loan
• 1% have arranged their mortgage on-line
• Of those that have used the internet to seek financial information 50% said ease/convenience and speed were the main reasons for using the Net to conduct their personal finances; 10% accessibility and 7% said no pressure to buy was their main reason
• Among those who do not use the Internet for arranging their finances, lack of access or knowledge, as the main reasons for people not using the internet for their personal finances, fell from 53% six months ago to 21%*

Technical details

Figures in the text referring to numbers of people are based on percentage calculations of forty five million adults (the GB adult population is approximately 45 million)

MORI Financial Services conducted research among 2075 respondents among adults aged 15+ across Great Britain between 3- 10 August 2000.

* Lack of access and knowledge - those respondents who do not get a chance to use the internet in home/ office, couldn't find / wouldn't know how to find info they require, wouldn't know how to use the Internet, have no PC