Fears over online security are preventing independent financial advisors (IFAs) from offering the best range of deals to customers, according to research by BT Openworld.
In a survey of financial advisors, 50% rated security of confidential or customer sensitive data as the main hindrance to the uptake of the Internet as a business tool.
While almost 100 per cent have started to involve the Internet in their business and are working smarter online - such as electronic filing with the Inland Revenue - a significant number still remain sceptical and uninformed about security issues, says BT OpenWorld.
Tools such as the Common Trading Platform (CTP), which IFAs use to source information and products for their clients, require a significant amount of Internet use.
Tony Harris, president, business Internet services, BT Openworld, says: "Smaller financial and accounting companies often lose out to the bigger players as consumers prefer to opt for the names they know. Using the Internet, both as a research tool and as a customer channel, can help them provide a more personalised, accessible service to their clients."