Issue 2001-4 - Wednesday, March 7, 2001
|62% of Americans who have a trading account do not seek advice on the Internet||
of Americans who have a trading account do not seek advice on the
If there is a country where online financial information is rich, abundant and most of the time free of charge, it is the United-States.
has countless first-rate sites, portals, eServices, and forums
yet, the survey shows that 62% of the respondents, who do have a portfolio,
do not use the Internet for financial planning information.
Age and revenues also make some dramatic differences in how people are using the Internet for information.
As far as
age is concerned:
As far as revenues are concerned:
And finally, this remains a very sexist attitude since men constitute 45% of those who use Internet resources for financial planning compared to only 31% of women. Come on, ladies, get a move on!
This survey happens to be very interesting for all the actors involved in the eFinance business but it also proves that it is not as easy as it seems to change the way people behave.
And yet, this is a very favourable situation:
This is an almost perfect situation and it should have proved enough to make online financial services a success. But such is not the case as the survey shows that only 10% of Americans who have a trading account use financial news websites
What on earth could prompt Americans to use these sites more often? Should we start paying them?
This is just one more proof that it is very easy indeed to overestimate the Internet potential to modify Internet usage patterns.
Source : American Express
|Uneven development of online trading activity. Online trading by Schwab customers plunged more than 14.3% in the fourth quarter of 2000|
Schwab's model customer might differ from its brokerage rivals', that are more or less hit by the present crisis, and this fact might contribute to explain the differences between those sites.
This is how, in January 2001, trading was up 14% at Ameritrade, 6% at Datek, and even 6% at Schwab's CyBerCorp unit from December levels.
And yet, at Schwab itself, trading fell 5% in January 2001 from December 2000.
Longer term comparisons appear to be somehow more disturbing as daily trading activity since it slumped a 48% for Schwab from its March 2000 peak.
As it refused to lay off any worker, Schwab has taken a number of unusual steps: it asked employees to take unplanned vacation days and it temporarily slashed the salaries of top executives, including the firm's co-chief executives.
Let's compare average daily trades of online brokerage between the fourth and third quarters of 2000:
Source : Salomon Smith Barney