Is Robo-Advising the Future of Finance in Ireland?

Updated: Jan 31

Robo-investing and management is only just gaining traction in Ireland. These programs bring the simplicity and ease of access to applications that anyone can use on the smartphone to conduct tasks such as:

  • Wealth goal setting

  • Keeping track of budgets and spending trackers to help you stay on top of your expenditure

  • Where and how to save money

  • Planning budgets

There is so much more that can be done with robo-advisors APIs, apps and software. You can learn when and where to invest; which investments suit your goals and achieve more success in saving and creating pension funds to name a few. While the younger generation is keener on using the technology available, older folks may not be as trusting or ready to get on board. In fact, many people still hoard money under their mattress!

As the pandemic continues to expand into the new year, by now many sceptics and older consumers are slowly but surely getting used to the new online business and finance climate and it’s becoming more accepted and embraced. Some people can be hard to sway because they prefer speaking to another person face to face about their finances. They feel more secure building a relationship or trust level with a firm representative who they can see, hear and interact with. However, because of how easily Covid-19 can be spread, social distancing is required and many in-person exchanges are no longer advisable until further notice.

Therefore, out of necessity and innovation, Fintech is developing and taking progressive steps every day. It’s becoming easier to use and understand and therefore more appealing to older generations who feel like they can’t keep up with the pace of technological advancement in all areas of life. A rise in the use of robo-advisors in Ireland is more possible now than ever before. Knowing that it cuts out the risk of contracting the coronavirus in crowds or queues of people at financial institutions is a motivating factor. Everyone wants to be safe and would rather reduce the risks of contracting Covid-19 by adapting to the ‘new normal’.

Final Verdict

As Covid-19 continues to change the way the global community conducts day to day affairs, technology is advancing at a greater rate to combat the restrictions that lockdowns place on citizens. People have replaced evenings at the pub with evenings on Zoom sipping beer with friends in virtual chat. Children are learning via educational platforms online to receive lectures, submit assignments and interact with classmates with ease. You can clock in for work from the comfort of your own home instead of bracing hours or rush hour traffic. Banking can be done in the palm of your hand while you sip your morning coffee in your pyjamas. A technological renaissance of sorts is upon us and the innovative constructs are making ground breaking progress to curb the economic effects that the Covid-19 pandemic brought on.

Fintech is the way forward, even when it’s possible for the world to regain some form of normality. The ease of access and user-friendly interfaces of the many fintech products available are only going to develop and become more efficient. While a robo-advisor can’t replace a human counterpart in some aspects, it can still perform at a level that is reliable enough to help people become better at managing their funds and goals.

* This is not financial advice but my own views based on my experience in the industry. If you want advice I recommend you talk to a qualified advisor.

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