INTERNET USERS MORE TRUSTING OF FINANCIAL ACTIONS

Brandweek Online Newsletter, Thursday, January 2, 2002

NEW YORK – U.S. consumers are more trusting when conducting online transactions than they were a year ago, with the most dramatic surge in trust associated with conducting financial transactions online, according to the “Consumer Internet Barometer,” a new quarterly report on Internet activity. The report is produced jointly by NFO WorldGroup (a division of The Interpublic Group of Cos.), Forrester Research and The Conference Board.

More than 33% of consumers surveyed expressed trust that their online financial transactions are safe, up from 27.5% a year ago. Consumers also expressed a greater degree of trust when purchasing products online with 25% saying that their personal information will be safe when purchasing products online, up from 21.9% a year ago. Satisfaction levels for online financial transactions and purchases also improved over the past year.

“Lack of trust has long been a major barrier to engaging in online transactions,” Lynn Franco, director of the Consumer Research Center of The Conference Board, said in a statement. “Consumers’ concern about privacy of their personal information has a significant influence on their willingness to engage in business exchanges online. But this trust barrier is beginning to erode.”