Online Financial Products Not Embraced In Europe
The majority of Europeans with internet access do not buy financial products online. According to a recent report released by Forrester, “Why Europeans Don’t Buy Financial Products Online”, only 15% of Europeans who recently purchased a financial product bought it through the internet, while 48% used bank branches and the rest applied via mail or telephone.
After surveying 8,435 online Europeans, Forrester found that the top five reasons for not buying financial products online:
- Desire to speak to someone while applying, because they cannot find necessary information on the bank’s website.
- Do not trust the internet to keep personal information secure.
- Don’t see any advantage in applying online, find the branch or telephone more convenient or reliable.
- Consumers are using the same channel the product offer originally came through, commonly the mail.
- Applying online is too complicated, mainly due to unclear, lengthy, and hard to find application forms.
Forrester proposes various ways financial service firms can stimulate online applications through improved customer service and addressing the trust issues.
Instead of waiting for consumers to become more comfortable online, Forrester recommends that companies confront these barriers hindering online financial product buying and find ways around them.
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