Market ripe for finance on web

By MARK FRYER

While the internet has not yet taken over the world as some of its proponents hoped, a British company says the time is ripe to use the net as a tool for selling financial services to New Zealanders.

Goodinvestor.com launched its New Zealand operation this week.

Initially providing mortgages and credit cards online, it plans to expand into managed investments such as unit trusts in the next six months.

Goodinvestor director John Edgar says it will also consider insurance and sharebroking.

Rather than providing its own products, the firm acts as a broker, providing access to products from established companies.

Mortgage and credit card information is provided through an alliance with existing online provider E-Loan, which is owned by AMP subsidiary Liquid.

"I think New Zealand is a very good place for internet financial services right now," said Edgar.

He cited factors such as widespread familiarity with the net, the relatively strong economy and the robust housing market.

New Zealanders have so far preferred face-to-face contact when it comes to buying financial services, but "most of the mainstream stuff that you can do with your finances can be done very well on the internet".

"I think we are coming out of the dot.bust now and people do see that the internet is a viable tool."

Edgar said Goodinvestor decided to move into New Zealand about a year ago. It was also expanding in Canada, and planned to take on the US market next year.

Goodinvestor