You've Got M@il?

Consumers Slam Internet For Money Matters

Tom Hanks and Meg Ryan may find love over the internet, but only two per cent of British people say they would use it to find out about various financial products. For most products people trust good old-fashioned face-to-face contact, according to a MORI Financial Services survey conducted for the financial services company, i.e. group.

With the diminishing role of the Welfare State placing emphasis on the public to make greater provision for their personal welfare and putting their money skills under the spotlight, i.e. group asked the public how they would choose to find out from financial companies about the following financial products before taking them out: personal pensions, mortgages, personal loans, credit cards and car insurance.

With the exception of car insurance, the results revealed widespread public preference for face-to-face contact and this questions how well placed direct providers and supermarket banks will be to provide complex financial products, such as ISAs and stakeholder pensions.

• For complex financial products - personal pensions and mortgages - six in ten and seven in ten people respectively said they would contact financial companies face-to-face to find out about these products.

  160

• With the exception of car insurance, face-to-face was the most popular method of contact among under 35 year olds - for example, 89 per cent of 25-34 year olds would choose face-to-face contact to find out about mortgages. This dispels the stereotype of telephone banking being a lifestyle solution for busy younger working people.

  160

• Among all adults - for common forms of borrowing (credit cards and personal loans), face-to-face contact (35 per cent and 57 per cent) was also preferred to telephone contact (28 per cent and 21 per cent) - despite the ease with which consumers can call direct for these lending products.

  160

• The telephone's only win was for car insurance where it was the preferred method of contact for more than one in two people (67 per cent).

  160

• The internet was not a popular way of finding out, about financial services. Despite heavy promotion of internet and PC banking by the high street banks, only two per cent of those surveyed said they would use the internet to find out about car insurance, credit cards, a loan or a pension, with only one per cent saying they would use the internet to find out about mortgages.

  160

Says Rupert Robson, Chief Executive of i.e. group: "our research dispels that myth that this is simply a convenience society where people only wish to conduct their lives over the telephone or through cyberspace. The thought that most savings, investments and pensions will be sold by trendy direct providers over the telephone or on the web on the strength of Government-inspired league tables is laughably out of touch with reality. Rather, the advent of ISAs and stakeholder pensions places significant emphasis on the importance of quality independent financial advice. These are complex products and i.e. group strongly supports the notion that some things are best done face-to-face.

i.e. group believes that the introduction of ISAs and stakeholder pensions will see a further increase in the role of independent financial advice. We think that many consumers are currently confused by these products and will not rush into a deal that may prove to offer poor comparative value.

The public's preference for face-to-face contact in arranging their financial affairs comes at a time when society is looking forward to the Millennium and, perhaps, presuming that technology will be the driving force in changing the way we live. In reality our survey suggests that, as far as personal finance is concerned. the new century may finish as it started - with people wanting to meet and talk to an independent expert in person before buying a financial product."

Technical details

• For more information or to arrange interviews, contact Guy Bellamy/Rebecca Ellis-Owen on 0171-831 3113 (office hours) on 07970-750679 (out of office hours)
• i.e. group, a new UK financial services group, has created a comprehensive service to provide its customers with the complete independent financial solution to their personal needs. i.e. group comprises a number of businesses providing independent financial advice on life assurance, pensions, personal taxation, mortgages, investments, general insurance and stockbroking.
• The public can obtain a free information pack on i.e. group by calling free on 0800-975 9100
• The i.e. group research was undertaken by MORI Financial Services among a nationally representative GB sample of 1,978 people in February 1999.
• i.e. group is a trading name used by SEC Group PLC.

160