Our relationship with money was changed in 2020 and now we trust more in the Automated Robots to manage our finances and that is an advancement on its own. A recent report of study by Oracle and personal finance expert Farnooshi Torabi said that. More than 9000 consumers after being studied which were the business leaders in 14 different countries found that Covid pandemic had increased their financial anxiety and sadness and most of all the fear among people all around the world and drastically had changed the fact of whom do we trust to manage our finances. People are now rethinking the role and focus of corporate finance teams and personal financial advisors, according to the research. The global pandemic has damaged people’s relationship with money at home and at work.
Amongst business leaders, financial anxiety and stress increased by 186 percent and sadness grew by 116 percent; Consumer financial anxiety and stress doubled and sadness increased by 70 percent.90 percent of business leaders worry about the impact of COVID-19 on their organization, with the most common concerns centering on a slow economic recovery or recession (51 percent); budget cuts (38 percent); and bankruptcy (27 percent).87 percent of consumers are experiencing financial fears, including job loss (39 percent); losing savings (38 percent); and never getting out of debt (26 percent). These concerns are keeping people up at night: 41 percent of consumers reported losing sleep due to their personal finances. The financial uncertainty created by COVID-19 has changed who and what we trust to manage our finances. To help navigate financial complexity, consumers and business leaders increasingly trust technology over people to help.67 percent of consumers and business leaders trust a robot more than a human to manage finances. 73 percent of business leaders trust a robot more than themselves to manage finances; 77 percent trust robots over their own finance teams. 89 percent of business leaders believe that robots can improve their work by detecting fraud (34 percent); creating invoices (25 percent); and conducting cost/benefit analysis (23 percent). 53percent of consumers trust a robot more than themselves to manage finances; 63 percent trust robots over personal financial advisors. 66 percent of consumers believe robots can help detect fraud (33 percent); reduce spending (22 percent); and make stock market investments (15 percent). And thus people are starting to believe in Robots being able to manage our finances way better.
To adapt to the growing influence and role of technology, corporate finance professionals and personal finance advisors alike must embrace change and develop new skills. 56 percent of business leaders believe robots will replace corporate finance professionals in the next five years. 85 percent of business leaders want help from robots for finance tasks, including finance approvals (43 percent); budgeting and forecasting (39 percent); reporting (38 percent); and compliance and risk management (38 percent). Business leaders want corporate finance professionals to focus on communicating with customers (40 percent); negotiating discounts (37 percent); and approving transactions (31 percent). 42 percent of consumers believe robots will replace personal financial advisors in the next five years. 76 percent of consumers want robots to help manage their finances by freeing up time (33 percent); reducing unnecessary spending (31 percent); and increasing on-time payments (31 percent). Consumers want personal financial advisors to provide guidance on major purchasing decisions such as buying a house (45 percent); buying a car (41 percent); and planning for retirement (38 percent). 60 percent of consumers say the pandemic has changed the way they buy goods and services.
72 percent of consumers say the events of 2020 have changed how they feel about handling cash, with people feeling anxious (26 percent); fearful (23 percent); and dirty (19 percent). More than a quarter (29 percent) of consumers now say that cash-only is a deal-breaker for doing business. 87 percent of business leaders say organizations that don’t rethink financial processes face risks, including falling behind competitors (44 percent); more stressed workers (36 percent); inaccurate reporting (36 percent); and reduced employee productivity (35 percent).
“Managing finances is tough at the best of times, and the financial uncertainty of the global pandemic has exacerbated financial challenges at home and at work” said Farooshi. Seeing all this data we can derive that errors made can be avoided with the precision the automated robots provide and are well versed in. Organizations that don’t embrace these changes risk falling behind their peers and competitors; hurting employee productivity, morale and well-being; and struggling to attract the next generation of AI-empowered finance talent.