Bad news for financial advisors, money managers and retirement planners in Singapore. A new report from Oracle found that 76 percent of Singaporeans trust a robot more than a human to manage finances. What’s more, more than half of the business leaders surveyed believe robots will replace corporate finance professionals over next five years.
According to Oracle’s research, how Singaporeans view money management was greatly altered by the COVID-19 pandemic. Lockdowns and other factors meant the way people buy goods and services changed drastically over the past 12 months. For example, one in five consumers in the country now say they wouldn’t purchase from a company that’s cash-only.
Embracing AI and other new technologies to manage financial processes will be important for Singapore in its bid stay competitive and compete with Hong Kong. A staggering 97 percent of business leaders in Singapore say organisations that do not rethink financial processes will be at risk.
“The financial sector has long been a massive focus for Singapore as it has worked to cement itself as a regional hub. 2020 has only served to accelerate this as the need for digital services became widely recognized as essential for business resilience,” Adrian Johnston, Head of Apps, JAPAC at Oracle, stated.
He continued, “Now with digital banks increasingly dominating the space, embracing technologies such as AI has become more important for financial service providers to cultivate innovation across functions. The findings of our research serve to further reinforce these trends, while also showing that we have entered a new era for corporate and personal finance where technology has become an integral part of operations.”
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Why do Singaporeans trust robots to handle their money?
The main reason Singaporeans trust robots to handle their money is that they believe technology will make better decisions than humans. However, there is a silver lining for those in the financial services industry.
Those surveyed noted they would still consult with a financial advisor on major purchasing decisions, such as buying a house or car. It was a similar story in the business world with companies saying they didn’t want all tasks to be done by robots.
Ultimately, corporate finance professionals and personal finance advisors in Singapore will need to adapt by learning new skills and tailoring their services to meet evolving needs.
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