Getting Closer to a Cashless Society!

Technology Affecting Financial Decision-Making

There is growing evidence to suggest technology is affecting financial decision-making, and when coupled with deep-rooted financial attitudes there is potential for consequences, while on the other hand, technology can be a friend. Mobile apps help people better track their finances and help them overcome behavioural preferences, such as overconfidence on limited information or in dislike to losses.

While technology may help us make more informed financial decisions, those old fashion people like me still believe that the trusted financial advisor of the human kind is still an important part of helping clients be aware of their biases and understand when their financial emotions, we all often suffer kicks in!

The durability and flexibility of traditional money has been part of peoples lives for centuries. Yet electronic payments are making piles of cash and fumbling around for coins a remnant of the past, with more countries diving headlong into a cashless future.

The wave of change is coming whether we like it or not as Gibraltar appears to be moving incrementally closer to a cashless society though I believe there is a fair way to go.

A consequence of the Covid-19 pandemic has been the widespread use of electronic systems across an array of industries. The speed and efficiency with which technology can make our lives better was at the forefront our minds, whether it was the prevalent use of video or virtual conference solutions or ordering pre-paid groceries online or ordering your favourite takeaway. Though in reality the digital payment industry was in full swing even pre-COVID.

In difficult times, those who stand by your side are the ones you can truly count on. When all non-essential-service providers, schools, churches and entertainment hubs, cafes and bars are closed and popular places become out of bounds, as was the case during lockdown, many found themselves trapped inside, trying to make the most out of the situation.

However, one essential service which had to keep on going in times of this pandemic is that of Banking, with all its diversity of services ranging from a simple cash-handling transaction, to the more complex investments, loans and business facilities. While acknowledging the fact that Covid life went from one extreme to the other, banks had to keep up with the everyday needs of their clients, from businesses in need of cash flows, to customers seeking moratoria or pauses on their loans, with less tech-savvy persons who still find refuge with human face-to-face contact.

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10-07-2020 PANORAMAdailyGIBRALTAR