COVID-19 spurs robo-advice demand

The global pandemic has not only changed the way consumers buy goods and services, but also spurred stronger demand for robo-advice to help improve their financial wellbeing, a new survey finds.

Software firm Oracle’s Money and Machines 2021 report reveals that more consumers are shunning professional finance advisers, citing a lack of trust and varying degrees of competence from humans that fall short of their expectations.

The majority of consumers (67%) trust robots more than humans to help manage their personal finances, the global survey of 9000 respondents found (about 500 participants were Australian).

Three quarters of consumers currently use robo-advice to help manage their finances to free up time (33%), reduce unnecessary spending (31%) and increase on-time payments (25%). Robots are also helping many invest in the stock market.

An overwhelming number of participants (82%) predict robots will replace financial advisers by 2026. Nearly half (42%) are of the opinion that the change has already taken place or will do so in the next five years.

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Source: COVID-19 spurs robo-advice demand | Financial Standard