- 2.3 million people are now buying financial products online - over 18% more than 6 months ago
- Nearly half the Internet population (43%) have used the Internet in the last 12 months to seek information about financial services
- Car insurance and credit cards are the most popular transactions
- Only 1% of those interviewed experienced Internet credit card fraud
Despite the apparent fears of buying online there's been a surge in the numbers of people purchasing financial products over the Internet, according to a new MORI poll commissioned by Screentrade.co.uk, the UK's leading online insurance supermarket. 2.3 million people are now buying or arranging their finances online, an increase of over 18% from just 6 months ago. This is a considerable jump from the previous 6 months where an increase of just 11% was recorded.
7.1 million people are now managing their money on the Internet, an increase from 3.1 million when Screentrade.co.uk first conducted the survey with MORI in June 1999.
The research, carried out every 6 months to chart the changes in Internet use amongst consumers, also shows nearly half (43%) of the Internet population have used the Internet in the past 12 months to seek information about financial services. The most popular personal finance products investigated on the Internet are car insurance (21%), followed by stocks and shares (14%) and current accounts (13%).
Paul Charles, editor-in-chief at Screentrade.co.uk comments, "These results mirror the increasing confidence consumers now have when buying over the Internet. They are placing their trust in the Internet as an alternative and convenient buying tool. Researching and then purchasing financial products online is now part of the British psyche".
"The survey found that the main reason people buy online continues to be for ease, convenience and speed. Those who do investigate personal finance products tend to be aware of the need to shop around. Also, people's fears about security when purchasing online are unfounded despite all the hype. When questioned, only 1% had experienced credit card fraud."
Paul Charles adds, "The 21st Century has seen the Internet in the UK turn from an information device to buying tool. Consumers are realising they can get many products at a cheaper price without hassle. Car insurance is still the most popular item, proving that simple financial products are still the most sought after."
- 2.3 million people are buying online - 18% more then 6 months ago.
- Nearly half the Internet population (43%) have used the Internet in the past 12 months to seek information about financial services.
- 44% of people questioned have a PC at home and 30% have access to the Internet at home.
- 60% of Internet users say they are likely to use the Internet to source information on financial products in the near future.
Why do people use the Internet to buy financial services?
- 53% say they do so because of ease/convenience
- 8% speed (10% men)
- 5% ability to shop around
- 4% cost saving (7% women)
- 7% accessible
- 4% no pressure to buy (9% women)
What problems do people experience when purchasing goods over the Internet?
- 54% experienced no problems
- 22% say the Internet is very slow or they have experienced technical problems
- 17% say a site has crashed before completing transaction
- 6% say incorrect item has been delivered
- 1% have experienced credit card fraud
What are people likely to use the Internet for in the future?
- 47% car insurance
- 43% personal banking
- 34% home insurance
- 25% monitoring share price