Solicitors have been warned not to underestimate the threat from new legal services providers, as a survey revealed nearly half of consumers would be willing to obtain advice from banks or supermarkets when the Legal Services Bill becomes law.


The research, by Capita Legal Services, showed that 47% of respondents would be happy to use new providers of legal services for divorce, residential property conveyancing and will-writing.



The on-line survey of 1,385 consumers and 240 small-business owners revealed that people are most likely to trust financial institutions to deliver legal services, as banks, building societies and insurers took seven of the top-ten places for preferred new delivery providers.



The Citizens Advice Bureau took the number one spot, while the AA and Tesco took the other two places in the top ten. Respondents said they would also consider obtaining services from utility and telecoms companies, newspapers and football clubs.



Legal expertise was crucial for consumers when choosing where to buy services, followed by security of information and value for money.



Desmond Hudson, chief executive of the Law Society's representative arm, said: 'The expertise of solicitors and their outstanding record in preserving clients' confidentiality makes them well placed to meet the challenges of the future.'



But he warned against complacency. 'It's important not to underestimate the scale of the competitive threat. Innovative and forward-looking law firms will continue to thrive, provided they are not inhibited by excessive regulation,' he said.



The research also showed that people were more willing to interact with a provider through e-mail or telephone, rather than face to face.



Max Pell, managing director of Capita Legal Services, suggested that contact centres and Web sites would play an important role in the future of volume legal services.



Catherine Baksi