Oracle: 81% of people in Saudi Arabia trust robots more than humans to manage finances
Oracle has revealed a new study about people’s orientation and confidence in managing financial affairs in the Kingdom of Saudi Arabia and the world during 2020, and the study conducted by the company with finance expert Farnoosh Turabi indicated that people now trust robots more than themselves to manage their financial affairs.
The study included more than 9,000 consumers and businessmen in 14 different countries, including Saudi Arabia. And I found that the spread of Covid-19 increased anxiety, sadness and fear among people about financial affairs, and with it changed opinions about whom and with whom we trust to manage our financial affairs.
The study added that people are rethinking the role and focus of corporate finance teams and personal financial advisors.
Commenting on this, Juergen Lindner, Senior Vice President, Global Marketing, Oracle, said: “Financial operations in our personal and professional world have become increasingly digital over the past years and the events of 2020 have accelerated this trend. Digitalization is the new normal, with technologies such as artificial intelligence and chatbots playing a vital role in managing finances. Our research indicates that consumers trust these technologies to accelerate their financial well-being more than they trust personal financial advisors, and corporate leaders believe this trend is beginning to reshape the role of corporate finance professionals. Firms that will not adopt these changes will risk lagging behind their peers and competitors, which will harm employee productivity, morale and well-being, and will make it difficult to attract the next generation of financial talent supported by the knowledge of artificial intelligence. ”
“Managing finances is difficult in normal times, and the financial uncertainty resulting from the spread of Covid-19 has exacerbated financial challenges at home and at work,” said Farnosh Trappi, a personal finance expert and host of the So Money podcast. Robots are a great choice to help, as they are great at dealing with numbers and do not have the emotional connection to the money humans have. This does not mean that financial professionals will leave or be replaced completely. However, research indicates the importance of focusing on developing their additional personal skills to keep pace with the evolution of their role.
Here, the oracle sheds light on the study on financial affairs and its results:
The spread of the global pandemic has damaged people’s relationships with money at home and at work:
- Financial anxiety and tension among corporate leaders increased by 363%, and grief increased by 183%. While the percentage of financial anxiety and stress exceeded twice, consumers increased their grief by 78%.
- 94% of company leaders are concerned about the impact of the spread of the Corona pandemic on their companies, with most of their worries centered around a slow recovery or economic recession (52%), budget cuts (39%), and bankruptcy (28%).
- 90% of consumers suffer from financial concerns that include job losses (47%), a loss of their savings (43%), and an inability to repay debts (21%).
- Fears are keeping people awake at night, with 56% of consumers reporting that they do not sleep enough due to thinking about their finances.
People think robots are a better way to manage finances
The Oracle notes that the uncertainty and anxiety about finances caused by the spread of the COVID-19 pandemic has changed who and whom we trust to manage our finances. To help overcome financial complexities, consumers and business leaders are starting to increasingly trust advanced technologies rather than people.
- 81% of consumers and company leaders in Saudi Arabia and the world trust robots more than they trust humans to manage financial affairs.
- 83% of corporate leaders trust robots more than they trust themselves in managing finances.
- 87% trust robots more than their finance teams.
- 97% of company leaders believe that robots can improve their business by detecting fraud (40%), generating invoices (23%), and performing cost / benefit analyzes (25%).
- 62% of consumers trust robots more than they trust themselves in managing finances.
- 78% of consumers trust robots more than they trust personal financial advisors.
- 83% of consumers believe robots are able to detect fraud (34%), reduce spending (29%), and invest in the stock market (18%).
The role of financial teams and financial advisors has become different
The Oracle study demonstrates that adapting to the influence and increasing role of advanced technologies has led corporate financiers and personal finance consultants alike to embrace change and acquire new skills.
- 59% of corporate leaders believe that robots will replace financial professionals in companies within the next five years.
- 93% of corporate leaders would like robots to help manage financial tasks, including financial approvals (53%), budgeting and forecasting (46%), reporting (45%), and compliance and risk management (43%).
- Corporate leaders want corporate finance professionals to focus on communicating with clients (33%), negotiating discounts (35%), and confirming transactions (31%).
- 48% of consumers believe that robots will replace personal financial advisors within the next five years.
- 76% of consumers want robots to help manage their finances by saving time (44%), reducing unnecessary spending (34%), and increasing control over timely payments (21%).
- Consumers want the help of personal financial advisors by providing guidance on important purchasing decisions such as buying a home (44%), buying a car (40%), and planning for retirement (29%).
Adopting artificial intelligence techniques in managing financial affairs has become a requirement
The events of 2020 changed the way consumers think about money and increased the need for companies to rethink the way they use artificial intelligence and other new technologies to manage financial operations, according to Oracle.
- 86% of consumers report that the spread of COVID-19 has changed the way they buy goods and services.
- 92% of consumers indicated that the events of 2020 changed their feelings about cash transactions, with people feeling anxious (35%), fear (34%), and the money containing germs (25%).
- More than a quarter of consumers (31%) indicated that cash only is a significant factor that could change their minds about deals.
- Companies showed a quick response, with 91% of corporate leaders investing in digital payment technologies, and 79% of them established new ways of interacting with customers or changed their business models in response to the spread of the Corona pandemic.
- 62% of companies use artificial intelligence techniques to manage their financial operations.
- 95% of company leaders indicated that organizations that would not initiate a change of methodology in managing their financial affairs will face many risks, including being late to competitors (49%), more stressed employees (44%), and inaccurate reporting (39%). Reducing employee productivity (40%).