High Anxiety: More Than 80% of Consumers Cite Proper Security Arrangements as Number One Worry About On-line Finance.

PRINCETON, N.J.--(BUSINESS WIRE)--October 6, 1998--

Same High Level of Concern Reported Across All

Demographic Categories

Far and away, worry about security and confidentiality is the most important concern consumers cite about conducting financial transactions on-line, according to a study by Opinion Research Corporation International. More than four out of five consumers (82%) report that "having the proper security arrangements to protect confidentiality" is "extremely important" in selecting a financial firm for conducting on-line transactions.

What's more, the same high level of concern applies across all demographic categories -- sex, age, race, income, geographic location, etc.-- whether or not the consumer has ever conducted financial transactions on-line.

"We were not surprised that on-line security ranks at the top of the consumers list of concerns," says Elliot Savitzky, Senior Vice President of ORC International. "What was unexpected was the consistently high and widespread levels of worry throughout the marketplace."

SELECTING AN ON-LINE FINANCIAL FIRM

In the ORC International survey, consumers were queried on the criteria they use for selecting a firm for conducting financial transactions on-line. Among consumers who HAVE NOT conducted financial transactions on-line, the leading reasons reported for selecting a firm are: -0-

--   Having the proper security arrangements to protect
     confidentiality -- 82%
--   Offering best services and support (e.g., financial advice) -- 48%
--   Can interface with clients accounting software -- 47%
--   Having current relationship -- 34%
--   Having the cheapest services -- 30%
--   Being a recognized leader in on-line financial services -- 30%
     Among consumers who HAVE conducted financial transactions
on-line, the leading reasons consumers cited for selecting a firm
were:
--   Having the proper security arrangements to protect
     confidentiality -- 82%
--   Offering the best services and support -- 37%
--   Having the cheapest services, including fees and commissions --
     28%
--   Having a current relationship with the firm -- 27%
--   Interfacing with accounting software currently used -- 26%
--   Being a recognized leader in on-line financial services -- 23%

Market Opportunity for Financial Institutions

"This is a perfect opportunity for financial institutions to take advantage of the high level of anxiety that exists in the market by emphasizing the security of their systems," says ORC Internationals Savitzky. "Once this issue has been addressed, they can then focus on the other issues of consumer concern: having access to additional services, financial research and analysis, real time financial quotes, low transaction fees and commissions. Its analogous to having the vault in full view of the banking customer sometimes all you have to do is let the customers see your security systems and they never ask -- or worry -- again."

The study was conducted by Opinion Research Corporation International among a nationally representative sample of 1,000 adults and has a margin of error of +/-3%.

Opinion Research Corporation International, founded in 1938, is a global market research and model-based teleservices company, with offices in the United States, Europe, Asia and Latin America.