People now trusting robots more than themselves to manage their finances as 2020 has changed our relationship with money, according to a new study by Oracle and personal finance expert Farnoosh Torabi.

The “Money and Machines: 2021 Global Study” of more than 9,000 consumers and business leaders in 14 countries found that the COVID-19 pandemic has increased financial anxiety, sadness, and fear among people around the world and has changed who and what we trust to manage our finances.

In addition, people are rethinking the role and focus of corporate finance teams and personal financial advisors, according to the research.

COVID-19 has created financial anxiety, sadness, and fear

The global pandemic has damaged people’s relationship with money at home and at work.

Among business leaders, financial anxiety and stress increased by 186% and depression grew by 116% while consumer financial anxiety and stress doubled and sadness increased by 70%.

90% of business leaders worry about the impact of COVID-19 on their organisation, with the most common concerns centering on a slow economic recovery or recession (51%); budget cuts (38%); and bankruptcy (27%).

Additionally, 87% of consumers are experiencing financial fears, including job loss (39%); losing savings (38%); and never getting out of debt (26%).

Worryingly these concerns are keeping people up at night as 41% of consumers reported losing sleep due to their personal finances.

People see robots as a better way to manage 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.

The study said that 67% of consumers and business leaders trust a robot more than a human to manage finances while another 73% of business leaders trust a robot more than themselves to manage finances. Meanwhile, 77% of them trust robots over their own finance teams.

Moreover, 89% of business leaders believe that robots can improve their work by detecting fraud (34%); creating invoices (25%); and conducting cost/benefit analysis (23%).

Oracle’s study also found that 53% of consumers trust a robot more than themselves to manage finances while 63% trust robots over personal financial advisors. 66% of consumers believe robots can help detect fraud (33%); reduce spending (22%); and make stock market investments (15%).

The role of finance teams and financial advisors will never be the same

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.

The study found that 56% of business leaders believe robots will replace corporate finance professionals in the next five years.

Meanwhile, 85% of business leaders want help from robots for finance tasks, including finance approvals (43%); budgeting and forecasting (39%); reporting (38%); and compliance and risk management (38 %).

Business leaders want corporate finance professionals to focus on communicating with customers (40%); negotiating discounts (37%); and approving transactions (31%).

Also, 42% of consumers believe robots will replace personal financial advisors in the next five years.

Additionally, 76% of consumers want robots to help manage their finances by freeing up time (33%); reducing unnecessary spending (31%); and increasing on-time payments (31%).

Consumers want personal financial advisors to provide guidance on major purchasing decisions such as buying a house (45%); buying a car (41%); and planning for retirement (38%).

Our relationship with money has changed, it’s time to embrace AI to manage finance

The events of 2020 have changed the way consumers think about money and have increased the need for organisations to rethink how they use AI and other new technologies to manage financial processes.

About 60% of consumers say the pandemic has changed the way they buy goods and services while 72% of consumers say the events of 2020 have changed how they feel about handling cash, with people feeling anxious (26%); fearful (23%); and dirty (19%).

More than a quarter (29%) of consumers now say that cash-only is a deal-breaker for doing business.

Businesses have been quick to respond as 69 percent of business leaders have invested in digital payment capabilities and 64% have created new forms of customer engagement or changed their business models in response to COVID-19.

Moreover, 51% of organisations are already using AI to manage financial processes, compared with 27% of consumers.

87% of business leaders say organisations that don’t rethink financial processes face risks, including falling behind competitors (44%); more stressed workers (36%); inaccurate reporting (36%); and reduced employee productivity (35%).

“Financial processes in our personal and professional worlds have become increasingly digital for many years and the events of 2020 have accelerated that trend. Digital is the new normal and technologies such as artificial intelligence and chatbots play a vital role in managing finance.

 

Our research indicates that consumers trust these technologies to accelerate their financial well-being over personal financial advisors and business leaders see this trend reshaping the role of corporate finance professionals. Organisations 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.”

said Juergen Lindner, senior vice president, global marketing, Oracle.