By Gemma Simpson, 24 October 2006 12:35
NEWS
Credit cards are leading the charge as consumers become more comfortable about buying financial products online.
The internet will become the primary way consumers apply for credit cards over the next couple of years, with other online financial products set to follow suit, according to analyst house Forrester Research.
In 2006, nearly half (47 per cent) of US households with an internet connection applied for a credit card online, equating to an increase of more than 60 per cent in three years.
Older consumers are more likely to just do their research online, while younger consumers also apply over the web, according to the analyst.
The trend extends this side of the pond. Brad Strothkamp, senior analyst at Forrester, said there is a "very similar" story in Europe - with credit cards being the second most popular online financial product purchase here, behind online car insurance sales.
Only five per cent separates the two - with a quarter of Europeans buying car insurance online and a fifth applying for credit cards online.
Strothkamp told silicon.com: "Credit cards are the leading indicators for what will happen in the next two to three years for online financial products.
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"If people do not get a credit card online then [they] won't apply for anything else online."
And he added: "The next five years will see year over year growth [in online credit card applications]."
Strothkamp said credit cards are popular online purchases as consumers are familiar with the product and because it's relatively easy to compare rates online across credit card lenders.
Security and privacy issues are, however, still putting some people off when it comes to buying financial products online.
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