AMP decides to pull plug on its online venture

By PAULA OLIVER

AMP is to shut down its fledgling online financial services company liquid.co.nz because it cannot justify pouring more money into the venture.

The liquid.co.nz website has been running for two years, but only a small proportion of the 350,000 visitors to it have been buying the investments it offers.

General manager Mark Ennis said yesterday that many of the visitors instead used the site more like a library - using its tools to help them make informed decisions, but going elsewhere to do their business.

"We were getting missed out in terms of a potential revenue stream. It became a difficult obstacle to overcome."

The decision to close the venture came because a large amount of ongoing investment was needed to keep it on top of its game.

"Otherwise you're in danger of just becoming a bit tired and ho hum," Ennis said. "We didn't want that."

The venture had not made any money, but it had come close to becoming cashflow positive.

Part of its troubles were blamed on the wider investment environment, which made it difficult to get sales.

Ennis said a lot had been learned from the experience - particularly the fact that customers preferred a face-to-face approach to financial services.

Although some were happy to make decisions independently and act on them, most wanted personal contact, which led them to go elsewhere.

Ennis said AMP would not rule out trying the service again, but it would need to be complementary to more traditional channels.

"I do think this kind of thing has a future," he said. "But you would struggle as a standalone entity."

Liquid.co.nz had six staff directly involved in its operation.

They will move to other work within the AMP group.

The site will close at the end of this month.