People Trust Robots Over Humans To Manage Their Financial Affairs
2020 has changed our relationship with money, people now trusting robots more than themselves to manage their finances, according to a new study by Oracle and personal finance expert Farnoosh Torabi.
The 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 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.
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.
- 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 (31 percent); and conducting cost/benefit analysis (23 percent).
- 53 percent 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).
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