THE gloomy economic climate is spurring more Singaporeans to seek shelter under the Internet highway before venturing out to put pen to paper on another financial product.

According to a Google-sponsored survey conducted by marketing research firm Media-Screen LLC, nearly three out of four Singaporeans are making efforts to find out more about financial services and products, with company Websites and search engines being the most popular tools for conducting such research.

'In an economic slowdown when more and more consumers are counting every cent, they'll spend more time researching online - comparison shopping and hunting for bargains before making any purchases, creating a phenomenon known in the US as the 'Wal-Mart effect',' said Lori Sobel, head of sales for Google South-east Asia, in a media statement.

The study, which polled 601 Singaporeans, also found that 24 per cent of the respondents have gone one step further to apply for a financial product online.

More would do so if they could speak with a company representative and have the assurance that their personal information would be safeguarded, the survey found.

In the light of this trend, Google, which derives the bulk of its sales from selling online search advertisements, is urging banks and financial institutions to step up their online presence and digital marketing efforts.

'Traditionally, Singaporean financial institutions spend about 5 per cent of their marketing budget online. At a time when most of their potential customers are researching financial products on the Internet, companies cannot risk missing out on the opportunity to convert them into clients,' Ms Sobel said.

This article was first published in The Business Times on October 27, 2008.