Investment and Technology – Are They, Friends or Enemies?
With every day that passes, we are becoming increasingly digitally reliant. From the apps we use to meet friends to the website’s tools we use to track our banking affairs, we rely on the technology that has become a natural part of our lives and existences. In an increasingly digitalised world, we are becoming less reliant on human opinion and even personal interaction. In fact, you are currently reading these words on a screen of some form right now!
But can this specific shift in culture be defined as evolution…or regression?
There is currently a great debate regarding whether technology is a friend or foe for investors and their ventures within the financial industries. There are scores of investors now turning to robotically reliant apps for recommendations regarding their best options based on data stored within the smart systems they operate from. Many investors use such tools exclusively rather than speaking with a financial advisor as they might have done previously.
So—is digitalisation a friend or an enemy to our financial situations? Let’s dive in!
The BENEFITS
Speed: Apps can provide the information you need when you want it is useful. There is no waiting around on helplines or delays as you wait for someone to get data ready for you to read. Instead, digitalisation makes your portfolio available whenever you’re ready for it. Want to check your cash flow while you’re sitting in a taxi? Go ahead. Need to check in on your investment portfolio while you are out of the office? Sure, no problem. No wonder it’s such a popular option!
Efficiency: Platforms and money-management tools that rely on expertly created databases can offer significant efficiency. Automatically systemised platforms and money management tools can provide reassuring consistency and impartiality also. Plus, they are on hand at all times. Having your data accessible on a 24/7 basis means you can streamline your valuable time and organisational resources in the way that works for you.
Reduce the risk of human error: Removing human intervention can lessen the potential for mistakes and mishandling. Robotic systems can provide reassurance of consistency, and you don’t need to be concerned about personality clashes with banking staff or similar. If you need accurate information at any time of day, just ask ‘staff members’ Alexa or Siri—they’ll be happy to help!
Ease of access: Had an idea for a financial move in the middle of the night? No need to wait until the banks open. With a few taps of a screen, you can access a range of options without even leaving the room you sleep in. For busy professionals on the go, accessibility is an absolute priority and often a necessity also. As an investor, being able to access the market when you want to can open up opportunities that might otherwise have passed you by.
The DRAWBACKS
Lack of ingenuity: Computer programs cannot hope to match the human mind. An app cannot be creative—it can only collate information and return it to you. Professional finance experts have years of experience to offer tailored ideas and guidance. The force of technology is incredible, but without human support, much potential success could be missed out on in the short and long term. Robotic apps or platforms cannot replace the role of a financial expert.
Impersonality: It can feel like you are alone in your ventures when you spend all of your time interacting solely with apps and digital platforms. For those character types who thrive in an environment of personal interaction, the neutral (or even disconnected) nature of each venture might be off-putting. For beginner investors, they may want or need human guidance to help their financial experiences to flourish.
Less holistic view: Digital tools and resources are a fantastic aide. Still, they cannot hope to provide an all-encompassing view of your financial situation and prospects. Apps can let you know what you spend and advise where you could cut back, but they cannot personally identify your needs and values. Empathy and intuition are both elements that cannot be replicated within a digital system or programmed tool.
The Reality
Fundamentally, technology has a significant impact on how we make financial decisions within modern culture. Never before have so many people relied on their smartphones and desktops to manage their financial affairs and investment pursuits successfully. The power of AI is undeniable, and it continues to transform our social culture in ways we might never have foreseen.
However—with the avalanche of tech and digitalisation that has occurred, many people are now actively seeking personal interaction with experts who can go beyond the services of an app or platform. Likewise, investment firms realise that genuine empathy and authentic recommendations are what professional clients want most. As a result, the companies that do not seek to replace their staff with technology but instead support their team with its benefits are the ones that thrive.
Regardless of its current shape or size, your money portfolio deserves efficient handling and the best possible care. Digital tools and resources can make financial management more straightforward and more universally accessible. But it cannot hope to replace the role of high-quality recommendations and professional guidance from a trained and qualified adviser.
Follow your instincts—in a brilliantly human manner—to achieve the financial management results you hope for. Allow technology to take its suitable place in your life and schedule. Yet allow yourself to respond to any thoughts that imply you might need further support that goes beyond pixellated advice and digital automation. Find the right balance between the two, and you’ll be set for success in the future!
