WHO IS THE INTERNET GENERATION?
Equifax survey reveals that the younger generation is more concerned about security of transacting on the internet than their parents!
London 9th July 2007 – Equifax, leading provider of instant online credit information, has conducted a detailed survey* of UK consumers and how they use the internet. In particular, the survey focused on how consumers transact with the financial services and banking sectors online. The findings have provided an insight into the different generation’s concerns and demands which is likely to challenge current perceptions.
Whilst the use of the internet for financial management and purchases was commonplace amongst the survey respondents, the barriers to a greater use of the web came down to some relatively unsophisticated factors. And the attitude to security when transacting online, especially for financial services, was particularly marked amongst the different generations.
The Equifax survey revealed that 85% of 18-25 year olds use the internet to buy financial services, 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 buy insurance online at 69% – compared to the overall average of 61% of respondents. And 87% of all respondents bank online, with the 25-35 year olds being the most prevalent online bankers at 90%.
These findings are probably not surprising, but when it comes to security and passwords, the picture is quite different.
When it comes to passwords, 33% of 18-25 year olds have forgotten theirs when online, causing delays or resulting in them abandoning the transaction, and 46% of this age group said they were concerned about passwords when online banking. This compares to an overall average of 26% of respondents concerned about passwords when online banking with the 36-45 year olds and 46-60 years being the least concerned at 23% each. Could this be because the older generations are simply less forgetful? Or could it be because the younger generations have so many more passwords to remember?
“Consumer awareness and confidence in the Internet has seen huge growth as our survey showed” confirmed Neil Munroe, External Affairs Director.
“More and more consumers are going online to source and buy banking and financial services. But when you look at the responses relating to security, financial services providers need to better understand the barriers that are turning consumers off.”
In particular, Equifax believes that identity verification and security on the internet are major problems which need to be addressed by the financial services sector.
“28% of respondents said that they had been unable to complete a financial services transaction because some form of verification was required by post” reported Neil Munroe. “This is a worrying statistic when you also consider that 94% of respondents said that it was either very or quite important to be able to obtain a financial services quotation in full online.”
The Equifax survey also revealed that consumers don’t just want to be able to transact online as they can currently. 83% would like to be able to communicate with their bank securely by email – phishing is a major concern currently in this respect. 23% would like access to their accounts via their mobiles, although only 17% of 36-60 year olds would want this. And 62% would like to receive statements by email – interestingly 72% of 26-45 year olds wanted this service compared to only 53% of 18-25 year olds.
“Banks and financial service providers need to take advantage of the latest technology to help them meet the changing needs of consumers” concluded Neil Munroe. “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 need to meet these needs by investing in the latest digital security, allowing them to maximise communications and enhance the service they offer customers.”
END
Please see below for key findings from the Equifax/e-Solutions 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
| Online Shopping Habits | By Age |
|||
| 18-25 | 26-35 | 36-45 | 46-60 | |
| Use of the internet a week Less than 1 hour– 3% 1-3 hours – 21% 4-6 hours – 24% 7-10 hours – 16% 10+ hours – 36% |
22 27 10 41 |
24 23 15 36 |
16 32 17 30 |
19 20 22 35 |
| Occasions when been unable to complete online purchase in last 12 months None – 48% 1-3 – 43% 4-5 – 7% 6-9 – 1% 10+ – 1% |
57 36 5 0 2 |
48 44 6 2 0 |
41 47 10 2 0 |
49 43 6 1 1 |
| Reasons for being unable to complete transactions Forgot password or user name – 26% Process too complex – 16% Additional info needed by post/fax – 11% Process too time consuming – 24% Technical problems with site – 76% |
33 4 16 29 83 |
27 10 12 12 80 |
20 24 13 34 78 |
31 17 9 32 66 |
| Sourcing & Buying of Financial Services | By Age |
|||
| 18-25 | 26-35 | 36-45 | 46-60 | |
| Use of the internet to buy financial services Yes – 82% No – 18% |
85 15 |
82 18 |
82 18 |
75 25 |
| Searched online in last 12 months Credit cards – 61% Loans – 45% Stock trading – 12% Insurance – 61% Pensions – 8% Foreign exchange/money – 27% Other – 14% |
75 55 8 55 10 30 10 |
69 53 9 69 6 29 14 |
66 44 11 61 8 28 12 |
43 34 18 55 12 24 17 |
| Ease to obtain quotes online Very easy – 40% Quite easy – 37% Alright – 19% Quite hard – 3% Very hard – 1% |
35 35 26 4 0 |
45 39 14 2 0 |
35 37 23 4 1 |
40 34 23 2 1 |
| Not completed a transaction because postal information/verification required Never – 67% 1-3 – 28% 4-5 – 3% 6-9 – 1% 10+ – 1% |
59 37 2 2 |
68 27 3 1 |
66 27 4 3 |
71 25 3 0 |
| Importance of being able to obtain financial services quotation in full online Very – 55% Quite – 39% No – 6% |
55 41 4 |
61 35 4 |
52 41 7 |
52 41 7 |
| How easy are financial services sites Very – 25% Quite – 46% OK – 27% Quite hard – 2% |
22 45 29 4 |
29 48 21 1 |
20 44 33 2 |
24 46 25 2 |
| Online Banking: Trends & Concerns | By Age |
|||
| 18-25 | 26-35 | 36-45 | 46-60 | |
| Use of online banking Yes 87% No 13% |
85 15 |
90 10 |
86 14 |
86 14 |
| Number of online accounts 1-3 – 77% 4-6 – 20% More than 6 – 3% |
78 18 4 |
79 19 2 |
77 18 5 |
75 23 2 |
| Main use of online bank account Managing finances – 95% Paying bills – 85% Ordering cheque books – 15% Loans/finance – 23% Insurance – 17% |
96 80 12 24 16 |
97 88 13 30 18 |
95 85 17 19 21 |
95 85 19 18 15 |
| Main reasons for use Convenience – 94% Ease of use – 68% Improves control of finances – 66% Lower cost – 17% |
96 76 66 18 |
94 70 70 16 |
94 69 61 16 |
93 65 65 19 |
| Concerns about online banking Logon process – 12% Security – 73% Website layout – 7% Passwords, etc – 26% |
23 65 12 46 |
11 76 5 26 |
9 72 9 23 |
12 74 6 23 |
| Concern about security of banking online Very – 20% Quite – 20% Not very – 30% |
14 18 30 |
20 21 31 |
23 23 23 |
19 19 32 |
| Would you like to be able to communicate securely by email with your bank Yes – 83% No – 17% |
84 16 |
79 21 |
88 12 |
84 16 |
| Want the ability to apply online for new products, etc Yes – 90% No – 10% |
92 8 |
94 6 |
92 8 |
82 18 |
| Other services wanted online Access to account via mobile – 23% Statements by email – 62% Other – 15% |
39 53 8 |
26 60 14 |
17 72 11 |
17 65 18 |
653 Equifax Personal Solutions customers responded to the Survey, conducted April 2007. 97% had broadband connection to the internet.
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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