Equifax Survey Reveals Banking and Financial Services Sectors Are Missing Out On Online Customer Opportunities

London 14th June 2007 – Equifax, the leading risk and ID verification solutions provider has conducted a detailed survey* of how UK consumers transact with the financial services and banking sectors online.

Whilst the use of the internet to source financial services and banks online was commonplace, the survey revealed a number of barriers to consumers completing transactions online and communicating with their bank via the internet. It also showed some variations in usage by different age groups.

The Equifax survey revealed that 82% of respondents used the internet to search for financial services and of these, 85% were aged 18-25, compared to 82% for 26-45 year olds and 75% for 46-60 year olds. And whilst overall, 61% of respondents used the internet to search for credit card deals, it was the younger generation who used it most for this type of search at 75%. The 26-35 year olds are the age group most inclined to source insurance online at 69% – compared to the overall average of 61% of respondents.

However, the figure for those actually buying financial services online was much lower at 42%, suggesting problems with or a reluctance to buying these services online. Of those that had bought financial services online, it was the 26 - 35 year olds that did so most frequently at 50%, followed by the 18 – 25 year olds at 44%. The group that bought financial services via the internet the least was the 46-60 year olds.

The survey revealed a number of reasons for this gap between initial search and purchase. Although technical problems and forgotten passwords were the most commonly sited reasons for failing to complete an online transaction, a number of respondents (33%) had abandoned a transaction because they were required to send further information by post. This is a worrying statistic for the industry when you consider that 94% of respondents also said that it was either very or quite important to be able to obtain a financial service fully online, from quotation through to delivery.

Neil Lewis, Head of Equifax ID & Fraud Products comments: “There seems to be clear opportunity for some of the organisations in the financial sector to take a lead in this growth arena. Here is a ready made target market of consumers that are proactively looking for new products and services, and that wants to complete the whole process online. Consumer appetite appears high, but the finance sector has yet to convert this into actual transactions.”

The picture for online banking is similar to that of sourcing of financial services, with 87% of all respondents having an online bank account and the 25-35 year olds being the most prevalent online bankers at 90%. Not surprisingly, convenience was sited by 95% of respondents as the reason for choosing to manage their bank accounts online and 66% believe it improves their ability to control their finances. However, the survey also revealed 73% of consumers were concerned about online security, which may be deterring them for fully exploiting the online banking services on offer to them. Furthermore, the ability to communicate with their bank securely via email was considered by 83% of respondents as a significant benefit, as was the ability to apply for services such as loans and savings accounts online (90% of respondents).

Lewis concludes: “Banks and financial service providers need to take advantage of the latest technology to help them meet the changing needs of consumers and address their security concerns. Recent initiatives by the banks to give customers chip and PIN facilities at home are one way of tackling the problem – but we wonder if customers will want to be bothered with more equipment and technology.

Our survey shows that consumers want more from their online banking and financial services. And we believe Banks could meet these needs by investing in the latest digital certification systems which allow the on-going communication with customers and negate the need for complex login procedures. They can even enable the electronic signing and transmission of important documents, such as loan agreements, allowing banks and financial services providers to maximise acquisition opportunities and enhance the services they offer customers.”

END

Notes to Editors

Please see below for key findings from the Equifax Survey. For further press information please contact: Claire Foster, Kate Clements or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: claire@harrisonsadler.com

	Overall	By Age %
		18-25	26-35	36-45	46-60
How many hours using internet per week
Less than 1 hour	3%
1-3 hours	21%	22	24	16	19
4-6 hours	24%	27	23	32	20
7-10 hours	16%	10	15	17	22
10+ hours	36%	41	36	30	35
Reasons for using the internet over last 12 months
Information searching	92%	94	89	92	94
News	66%	64	70	64	65
Online shopping	84%	86	86	84	82
Managing Finances	73%	67	76	69	76
Job hunting	37%	57	48	33	25
Staying in touch with family, etc	71%	76	75	69	66
Types of products or services purchased online
Books/DVD/CD	80%	81	81	85	76
Electronic Goods	66%	72	68	62	64
Software/music/film downloads	48%	56	49	48	43
Flights/Holidays	63%	56	65	65	60
Financial Services	42%	44	50	40	34
Mobile Phone	29%	39	31	25	28
Occasions when have been unable to complete online order or purchase in last 12 months
None	48%	57	48	41	49
1-3	43%	36	44	47	43
4-5	7%	5	6	10	6
6-9	1%	0	2	2	1
10+	1%	2	0	0	1
Reasons for being unable to complete online transactions
Forgot password or user name	26%	33	27	20	31
Process too complex	16%	4	10	24	17
Additional info needed by post/fax	11%	16	12	13	9
Process too time consuming	24%	29	12	34	32
Technical problems with site	76%	83	80	78	66
Used the internet to find financial services
Yes	82%	85	82	82	75
No	18%	15	18	18	25
Which financial services searched for
Credit cards	61%	75	69	66	43
Loans	45%	55	53	44	34
Stock trading	12%	8	9	11	18
Insurance	61%	55	69	61	55
Pensions	8%	10	6	8	12
Foreign exchange/money	27%	30	29	28	24
Other	14%	10	14	12	17
Not completed a transaction because required to post information
Never	67%
1-3	28%	59	68	66	71
4-5	3%	37	27	27	25
6-9	1%	2	3	4	3
10+	1%	2	1	3	0
Importance of being able to obtain financial services in full online
Very	55%	55	61	52	52
Quite	39%	41	35	41	41
No	6%	4	4	7	7
Use of online banking
Yes	87%	85	90	86	86
No	13%	15	10	14	14
Number of online bank accounts
1-3	77%	78	79	77	75
4-6	20%	18	19	18	23
More than 6	3%	4	2	5	2
Main use of online bank account
Managing finances	95%	96	97	95	95
Paying bills	85%	80	88	85	85
Ordering cheque books	15%	12	13	17	19
Loans/finance	23%	24	30	19	18
Insurance	17%	16	18	21	15
Main reasons for using online banking
Convenience	94%	96	94	94	93
Ease of use	68%	76	70	69	65
Improves control of finances	66%	66	70	61	65
Lower cost	17%	18	16	16	19
Concerns about online banking
Logon process	12%	23	11	9	12
Security	73%	65	76	72	74
Website layout	7%	12	5	9	6
Passwords, etc	26%	46	26	23	23
Would you like to be able to communicate with your bank by email?
Yes	83%	84	79	88	84
No	17%	16	21	12	16
Want the ability to apply for products and services online
Yes	90%	92	94	92	82
No	10%	8	6	8	18

About Equifax

Equifax Inc. is a global leader in information technology that enables and secures global commerce with consumers and businesses. We are one of the largest sources of consumer and commercial data. Utilizing our databases, advanced analytics and proprietary enabling technology, we provide real-time answers for our customers. This innovative ability to transform information into intelligence is valued by customers across a wide range of industries and markets. Headquartered in Atlanta, Georgia, Equifax employs approximately 4,600 people in 13 countries throughout North America, Latin America and Europe. Equifax was founded 107 years ago, and today is a member of Standard & Poor’s (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX. .

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