In theory, Europe already has a single market in financial products. European Internet customers can buy long-term investments from financial institutions outside their local areas, but few of them actually do; most people want to get face-to-face advice from experts before making a purchase. Broadband technology, which will allow that advice to be dispensed remotely across Europe, could help turn theory into practice and hugely raise the productivity of providers. But will consumers embrace on-screen financial advice?

Our research suggests that they might, especially if they already have a relationship with the provider. In September 2000, we conducted focus groups in France, Germany, Italy, the Netherlands, and the UK to gauge the reaction of customers to staged, interactive advice sessions conducted over televisions and PCs. Just over two-thirds of the participants said that they would be willing to accept interactive on-line advice in certain circumstances. Affluent people, with an acceptance rate nearing 80 percent, were the most enthusiastic (Exhibit 1). Many customers who were unwilling to use services over narrowband dial-up connections felt more comfortable with the idea of broadband services because they are easy to use, fast, and secure.

Although acceptance rates varied from country to country, the...