People now rely on robots more than themselves to manage their finances, according to a new study from Oracle and personal finance specialist Farnoosh Torabi .
Study of more than 9,000 consumers and business leaders in 14 countries found that The COVID-19 pandemic increased financial anxiety, sadness and fear . In this context, there has been a shift in who and what is trusted to manage personal finances
Robots as finance managers
To help navigate financial complexity, consumers and business leaders increasingly rely on technology than in people to help them. According to the report, 67% of consumers and business leaders trust a robot more than a human being to manage finances.
In turn, 73% of business leaders trust a robot more than themselves to manage finances ; while 77% trust algorithms on their own finance teams
It should be noted that 89% of these people believe that artificial intelligence systems can improve their work by detecting fraud (34%), creating invoices (25 %) and performing cost / benefit analysis (23%).
On the other hand, 53% of consumers trust a robot more than themselves to manage their finances and 63% trust automated systems instead of personal financial advisers. This group believes that artificial intelligence can help detect fraud (33%), reduce spending (22%), and invest in stock markets (15%).
Financial anxiety and fear
The global pandemic has damaged the relationship of people with money at home and at work . In this sense, among business leaders, financial anxiety and stress increased by 186% and sadness increased by 116% ; while consumer financial anxiety and stress doubled and sadness increased by 70%
87% of them are experiencing financial fears , including job loss (39%), loss savings (38%) and never pay off their debts (26%).
For their part, 90% of employers worry about the impact of COVID-19 on their organization, and the most common concerns focus on a slow economic recovery or recession (51%), budget cuts (38%) and bankruptcy (27%).
These concerns keep people awake at night: 41% of consumers reported losing sleep due to personal finances .
The new role of financial advisers
To adapt to the growing influence and role of technology, both corporate finance professionals and personal finance advisers must adapt to change and develop new skills
Bearing in mind that there is a tendency to believe in artificial intelligence to carry out certain activities, today employers want corporate finance professionals to focus on other activities such as communicating with clients (40%), negotiating discounts (37%) and approval of transactions (31%).
Consumers, for their part, want personal financial advisers to provide guidance on important purchasing decisions, such as buying a home (45%), buying a car (41%), and planning for retirement ( 38%).
According to the study, the events of 2020 changed the way consumers think about money and increased the need for organizations to rethink how they use AI and other new technologies to manage financial processes.
“Managing finances it is difficult at best and the financial uncertainty of the global pandemic has exacerbated financial challenges at home and at work, " said Farnoosh Torabi, personal finance expert and host of the So Money podcast. He added: “ Robots are well positioned to help, they are great with numbers and they don't have the same emotional connection to money . This does not mean that financial professionals will disappear or be replaced altogether, but research suggests that they should focus on developing additional soft skills as their role evolves. "
For his part, Juergen Lindner , senior vice president of global marketing at Oracle concluded: “ Digital is the new normal and technologies such as artificial intelligence and chatbots play a vital role in financial management. Our research indicates that consumers rely on these technologies to accelerate their financial well-being over and above personal financial advisers, and business leaders see that this trend is reshaping the role of corporate finance professionals. Organizations that do not embrace these changes run the risk of falling behind their peers and competitors; hurting employee productivity, morale, and well-being; and striving to attract the next generation of AI-powered financial talent. "
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pandemic Source: Infobae