IFAs must hurry online - but not panic, says The Exchange

The Exchange is warning IFAs that they need to start thinking seriously about using the internet as a work tool or risk being left behind.

Speaking at the cover Protection Forum, Jonathan David, sales manager at The Exchange, said that before IFAs set up their own website they need to decide exactly what they want to use the internet for and to define a clear strategy.

Some IFAs have said they have been put off by the initial costs, but a well-planned web strategy can actually save money and time, he said. "It is not as simple as just setting up a site and then sitting back to wait for the business to roll in. IFAs need to plan what they want to do online. Do they want to attract new business, or concentrate on providing a more efficient service for their existing customers?"

One of the most important questions an IFA will face is whether they want to trade online by providing quotes and application forms over the internet, or whether they want to speed up application processes and cut administration costs by contacting clients or prospective clients through e-mail.

The Exchange warned that although the internet is an important tool it remains just one route to the market. It also suggested that IFAs remember to segment their clients because not all of them will be happy using the internet. "Clients will still want access to advice and this is the crux for IFAs. The internet will help clients to understand more about what is available and IFAs need to develop a web presence, but the requirement for personal advice is as strong as ever," said David.

Recent figures from the Financial Times show that 44% of the UK population has access to a computer at home and 30% has internet access. The Exchange predicts that at the current rate of increase, 18.7 million people in the ABC1 demographic category will be using the internet for online financial services by 2003, and yet only 25% of IFAs currently have an online presence.