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Ultra-Rich Use Internet For Financial Dealings.

The ultra-rich are among the most likely to use the Internet for routine financial transactions, according to a study.

The study, by Spectrem Group, found that nearly three out of four people worth at least $5 million have used the Internet to obtain investment information in the past year. Only 52% of those with a net worth of $1 million to $5 million went online for the same reasons.

Also, 22% of people worth $5 million or more had done banking online, while 18% had traded securities online and 8% had used the Internet to purchase or redeem mutual-fund shares.

The survey looked at 600 of the country's estimated 596,000 households with $5 million or more in net worth. The consumers involved in the survey had an average net worth of more than $25 million, investable assets of $19 million and annual income that exceeded $2.5 million. The mail survey targeted a sample of 430,000 people who reported insider trading to the Securities and Exchange Commission.

When asked to list their most important reasons for banking or investing online, 43% said convenience; 37% said both the ability to better track investments and to save time; and 27% said it was the added control over their investments.

But the Internet won't replace financial advisers for the ultra-rich, said David Thompson, Spectrem's research program manager.

"Although they claim less need of hand-holding, we found that nearly 70% of our sample continue to use a professional adviser, who is most likely to be a full-service broker or an independent adviser," Thompson said in a statement.

A consumer survey by Quicken-Insurance and the Electronic Financial Services Council found that 25% of households with Internet access would use the Internet to shop for insurance.
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Comment:Ultra-Rich Use Internet For Financial Dealings.
Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Sep 1, 2000
Words:292
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