Tech’s Greatest Impact: Money Management

TD Ameritrade’s new research report, “The Tech Effect: How the Digital Age is Changing Investing,” surveyed 1,000 U.S. investors between the ages of 18 and 70 with over $10,000 in investable assets.

The report found that 21 percent believe technology’s greatest impact on their everyday life has been on how they manage money. That is almost as many as the 26 percent who say it's been on how they shop, and significantly more than those who say it’s been on how they work (15 percent), how they get around (10 percent), how they choose shows to watch (7 percent) and how they travel or meet people (both 5 percent).

According to Vijay Sankaran, chief information officer of TD Ameritrade, in a press release, “Technology is closely intertwined with how people manage their financial lives, and it’s fundamentally changing their expectations and behaviors. We’re looking at a major shift in what investors expect from their finances because of how technology is being ingrained into everyday life. If you want a tax statement in the middle of the night, for example, you’ll expect to be able to ask Alexa to get that for you.”

Nearly 90 percent of respondents said technology is a part of or critical to managing their finances — the more investable assets they have, the more likely they are to say that technology is crucial. In addition, 46 percent of investors said technology has made managing their finances easier compared to three years ago. However, 60 percent admitted they still trust humans to give them a better investing experience, compared with the 40 percent who prefer computers.

“Investors are seeing the practical benefits of emerging technologies like AI and machine learning in their personal lives, and our data shows they are eager to adopt them into their financial lives,” noted Sankaran. “And while there’s a heightened expectation for these newer capabilities, our data also shows the continued reliance on human touch. Money is a very personal matter, and the combination of empathy and technology will continue to be the ideal solution for most investors.”



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.