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Doubts over success of online business

IFAs remain unconvinced that online financial ser-vices business will take off, with nearly half saying no more than a fifth of transactions will be done on

the internet in the next five years.

Forty-five per cent of the 280 respondents to the Money Marketing State of

the IFA Nation poll in conjunction with Virgin One say no more than 20 per cent of their business transactions will be done over the internet over the next five years.

Exchange FS is still the IFA&#39s favourite in the sales platform stakes, with 69 per cent saying it has the best service.

Synaptic Systems and Assureweb come in a distant second and third respectively, gaining 18 per cent and 13 per cent of the vote.

Face-to-face advice is set to continue despite the onset of the internet.

Most IFAs believe their traditional face-to-face model will not diminish and that online advice will not take off as a major part of their business. Seventy-one per cent say they expect no more than a fifth of their advisory work will be done over the internet in the next five years.

Financial Technology Research Centre director Ian McKenna says: “There are a number of large IFAs who are putting vast amounts of resources into online services. There is an increasing amount of evidence to show business is being done online but this shows IFAs will not be the ones doing it and getting the benefit of it.”

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