Tag: #finance

The Big Risks of Impulse Spending

Impulse spending is something most of us have experienced. That sudden urge to buy a gadget, a piece of clothing, or a fancy coffee without planning for it. While it might feel like a quick pick-me-up, unplanned purchases can have big consequences for your financial health. Over time, these little impulses can add up to significant debt, missed savings goals, and even stress that affects your well-being. If you’ve ever found yourself needing tools like auto title loans in Birmingham after a spending spree, it’s a clear sign that impulse spending can spiral into bigger problems. Let’s take a closer look at the hidden risks of impulse spending and how to guard yourself against them.

How Impulse Spending Affects Your Finances

When you buy something on a whim, you’re often not considering the bigger picture. That $20 or $50 here and there might seem small, but it can quickly drain your budget, leaving less for essentials or savings. Over months and years, impulse spending can accumulate into hundreds or even thousands of dollars of unnecessary expenses.

This often leads to debt accumulation. Impulse spending also means you might miss out on important financial goals like building an emergency fund, saving for retirement, or paying off debt. Without control, it’s harder to plan for the future and build security.

The Psychological Triggers Behind Impulse Spending

Impulse buying isn’t just about poor money management—it’s deeply tied to our emotions and how our brains respond to stimuli. Many purchases are driven by feelings like stress, boredom, or the desire for instant gratification. When people are upset or tired, they might shop as a way to feel better temporarily.

Marketers know this well and use tactics to encourage quick decisions. Flash sales, limited-time offers, and eye-catching ads play on our fears of missing out or getting a “deal.” These strategies can trick even the most careful shoppers into making unplanned purchases.

Understanding these psychological triggers helps you recognize when you’re about to spend impulsively and pause before acting.

The Impact on Mental and Physical Health

Impulse spending doesn’t just hurt your wallet; it can take a toll on your mental and physical health too. The stress of juggling debt or worrying about money often leads to anxiety, sleep problems, and even physical symptoms like headaches or high blood pressure.

When impulse buying leads to regret or guilt, it can create a negative cycle where people shop more to feel better, only to feel worse afterward. Breaking this cycle is crucial for both your financial and emotional well-being.

Strategies to Avoid Impulse Spending

One of the most effective ways to fight impulse spending is to create a budget and stick to it. Knowing exactly how much money you have for essentials and extras helps you avoid overspending.

Another helpful tip is to use the “24-hour rule.” When you feel the urge to buy something unplanned, wait a full day before deciding. This pause allows your initial emotions to settle and gives you time to evaluate if the purchase is really necessary.

Avoiding tempting environments also helps. If online shopping is your weakness, unsubscribe from promotional emails and limit your browsing time. If you shop in stores, make a list and stick to it to prevent wandering into impulse buys.

Building Better Spending Habits

Replacing impulse spending with mindful spending takes time but is possible. Mindful spending means thinking about purchases carefully and making sure they align with your values and goals.

Track your expenses to see where your money goes and identify patterns of impulse spending. Celebrate small victories when you resist unnecessary purchases.

Developing hobbies and activities that reduce stress without spending money also helps. Exercise, reading, or spending time with friends can provide emotional boosts without emptying your wallet.

The Role of Support and Accountability

Sometimes talking about your spending habits with a trusted friend or family member can help keep you accountable. Sharing your goals and struggles makes you less likely to give in to impulses.

Consider seeking advice from financial counselors if impulse spending is seriously impacting your life. They can offer personalized strategies and support to help you regain control.

The Bigger Picture: Taking Charge of Your Money

Impulse spending might feel harmless in the moment, but its risks stretch far beyond. It can derail your financial plans, cause stress, and even affect your health. Recognizing these risks and understanding the psychological reasons behind impulsive purchases is the first step toward change.

By creating budgets, pausing before purchases, and seeking support, you can break the cycle of impulse spending. This not only improves your finances but also helps you build a healthier relationship with money and yourself.

If you’ve ever been caught in a cycle where impulse buys lead to short-term loans like auto title loans in Birmingham, know that change is possible. Take control with mindful spending, and watch your financial and emotional well-being improve over time.

 

IN2 Engineering lays foundation for expansion with OSSM and NetSuite

OSSM, an Oracle NetSuite Solution Provider, today announces that IN2 Engineering, an Irish-headquartered building services and environmental engineering consultancy, is using NetSuite to support its mission to expand across Europe. With NetSuite and OSSM, IN2 Engineering has been able to increase efficiency, centralise operational data, and lay the groundwork for its ambitious five-year growth plan.

Founded in 2002, IN2 develops innovative and sustainable engineering solutions for customers across multiple construction sectors including residential, hotel, health, education, commercial, sport, and leisure. With locations across Ireland, the UK, Germany, and Spain, in addition to a growth strategy to expand further across Europe, IN2 needed a flexible and scalable platform to support its multi-country operations. IN2 selected NetSuite and OSSM to streamline operations for over 100 employees across finance, sales, and project management, while using insights from NetSuite to support strategy and decision-making.

“To facilitate our growth as we expand into new jurisdictions, we needed a system that could scale with us,” said Lucy-Marnée Henning, Bid Manager, IN2 Engineering. “With support from OSSM, NetSuite is enabling the flow of real-time information across the business, which is crucial for delivering high-quality customer projects. In addition, as a business with multiple locations, NetSuite enables our employees to stay connected, wherever they’re working. As we build our portfolio of innovative and sustainable services across Europe, NetSuite will grow with us and give us insights to confidently make decisions.”

With NetSuite and OSSM, IN2 has a foundation that is helping drive productivity, improve operational efficiency, and enable seamless collaboration across the company’s six locations. With information centralised in NetSuite’s unified suite, IN2’s teams can more seamlessly manage customer projects, allocate resources, and track the status of bids and proposals to support new business growth. By using NetSuite to automate invoice processing and expense management, IN2’s finance team saves up to four days per month on previously manual processes, freeing up resources to focus on value-added tasks and customer service.

“When we set out to implement an ERP system, our goal was to choose a single platform that could support every aspect of the business and grow alongside IN2’s plans,” said Lorraine Kenny, Director of Finance, IN2 Engineering. “NetSuite has the longevity, adaptability, and capability to deliver fast, meaningful insights to empower our leadership team to act decisively. The OSSM team has provided fantastic support for our implementation and spoke our language from day one.”

“IN2 Engineering is an Irish business on an exciting expansion path,” said Roger Gribbin, Sales Director, OSSM. “OSSM is thrilled to have implemented NetSuite for IN2, which will provide the cornerstone of the company’s growth. With NetSuite and support from OSSM, IN2 can have confidence in the smooth day-to-day running of the business across its international bases, with a platform to help innovate and scale. We look forward to building our relationship with the team further.”

Ireland ranks among Europe’s most affordable countries to start a business

For anyone thinking of going freelance or launching their own small business, new research from Europe’s second-largest neobank, bunq, reveals that Ireland is one of the most affordable countries in Europe to get started. Among the top 10 EU economies analysed, Ireland stands out as a highly attractive destination for entrepreneurs and digital nomads looking to kick off their next venture.

Low Entry Costs

Ireland saw a big boost in entrepreneurship in 2024, with 23,384 new businesses starting up – a 5.5% jump from the year before. That includes everything from limited companies to sole traders and partnerships. It was actually the second busiest year for new business registrations in over a decade – only 2021, right after the pandemic, saw more. A key factor behind this growth is Ireland’s low financial barriers that present a highly attractive environment for emerging business ventures. With a nominal fee of €50 charged by the Companies Registration Office (CRO) to register a business officially, combined with a €1 minimum capital requirement and an average business bank account setup cost of €7.17, Ireland remains a popular destination for entrepreneurs compared to other European countries giving self-starters a true head start.

Before professional advice and excluding tax advisor fees, potential staffing costs, and other overheads these mandatory government and basic setup costs total just €58.17 – which makes it on the third place in the European comparison, right after Greece and Portugal. Even though not legally required for setting up a business, the costs of tax advice in Ireland are fairly low with an average hourly rate of €50. By factoring in an average of 15 hours of tax support, the total projected costs for starting a business would increase to €808.17.

How Ireland Compares: A European Snapshot

While Greece (€287) and Portugal (€751) offer the lowest startup costs, Ireland’s total of €808.17 is competitive. In stark contrast are countries like Germany (€26.266) and Italy (€13.512), where LLC’s face significantly higher initial expenses, largely due to mandatory capital requirements. Notably, Ireland also compares favourably on the cost of essential tax advice (€750 for 15 hours), sitting well below countries like France (€3.300) and Austria (€3.000). For comparison, the UK’s post-Brexit startup costs are broadly similar, with a £50 registration fee and no minimum capital requirement, but business banking and tax advisory fees can run higher.

Ireland still tops the list with lowest tax rate

With its remarkably low corporation tax rate of 12.5%, Ireland offers an unbeatable advantage for businesses aiming to set up within the EU. This rate is notably the lowest in the study and compares very favorably to the UK’s tiered tax system, which varies from 19% to 25% based on profits. This factor, combined with the low initial setup costs, positions Ireland as a hidden gem for startups and expanding companies.

Bianca Zwart, Chief Strategy Officer at bunq, comments on the research: “Starting something new takes courage, but where you start can make all the difference. Our research shows that in the right environment – like Ireland’s – ambition meets opportunity in a very real, tangible way.”

SumUp launches SumUp Pay, offering 0,5% cashback for Irish customers

Global fintech leader, SumUp, has today announced it is expanding its offering with the launch of SumUp Pay for consumers in the Irish market. Through diversifying its offering, SumUp looks to support both the consumer and merchant, reinforcing its commitment to the Irish entrepreneurial landscape and wider economy. This new solution permits online and in-store payments with a virtual Mastercard and the ability to earn 0,5% cashback on every purchase, earning up to €10 per calendar month.

With SumUp Pay, the company now enables consumers to create a free account, accessible via the mobile app, enabling full financial autonomy. Users can instantly access a free virtual Mastercard and top up their account via card or bank transfer. SumUp Pay allows for secure, fee-free payments worldwide, with transactions deducted directly from the balance and verified through biometric authentication like Touch or Face ID.

SumUp Pay offers a straightforward cashback system, giving users 0,5% back on every purchase, with no minimum spend or restrictions. Unlike other services, there are no conditions to meet; users can earn up to €10 per month simply by making everyday purchases at any retailer, both online and at brick and mortar shops.

Other features of SumUp Pay include the ability to easily split bills or send money to friends directly within the app. The peer-to-peer payment feature also supports free instant SEPA transfers, ensuring that funds arrive within minutes. Additionally, SumUp Pay can act as a personal financial coach, helping its users track expenses. The “Space” feature allows users to organise their money by creating multiple spending categories for saving, planning, or limiting expenses. This streamlined management is complemented by detailed reports, enabling users to monitor their spending, set monthly goals, and gain real-time insights into where and how they are spending their money.

“With SumUp Pay, we are providing a simple and accessible solution for managing daily finances. Our goal is to help users regain control of their money while offering tangible benefits such as instant, no-strings-attached cashback. A satisfied consumer becomes a loyal customer, and a loyal customer brings success to merchants,” added Erik Schünemann, Product Lead at SumUp on today’s announcement.

Niall Mac an tSionnaigh, CEO of SumUp Ireland commented: “With the rising cost of living in Ireland, at SumUp we are focused on making life a little easier for both consumers and merchants. We’re committed to providing simple, valuable payment solutions for businesses, while also looking out for the people who shop with them. Our goal is to create a marketplace where everyone is supported, cared for, and able to thrive, helping to build a more self-sufficient, connected community for all.”

Following successful launches of SumUp Pay in other key markets, and building on the momentum of innovations like Cash Advance in the Irish market, SumUp continues to work towards an inclusive ecosystem that bolsters the economy and empowers consumers and merchants alike.

Choosing a Direct Lender for Your Payday Loan: What to Look For

When financial emergencies arise, a payday loan can be a quick and convenient solution to your immediate cash needs. However, it’s crucial to choose the right payday loans direct lender to ensure your financial safety and peace of mind. With numerous lenders available in the market, understanding what to look for in a direct lender can help you make an informed choice.

Understanding Payday Loans

Before diving into what makes a good payday loan provider, it’s essential to grasp what payday loans entail. These short-term loans are typically sought to cover unexpected expenses or tide you over until your next paycheck. As they usually come with high interest rates, carefully choosing a reliable direct lender is paramount.

The Importance of Choosing a Direct Lender

Opting for a direct lender as opposed to a broker or intermediary provides several advantages. Firstly, it often translates to better terms since you are dealing directly with the source of the funds. It can also offer more security, as you’re not handing over your sensitive data to multiple parties, reducing the risk of data breaches and privacy issues.

Key Considerations in Selecting a Direct Lender

Here are some critical aspects to consider when choosing a direct lender for your payday loan:

1. Regulatory Compliance

A legitimate lender should comply with the Financial Conduct Authority (FCA) regulations in the UK. This compliance ensures that they adhere to strict guidelines aimed at protecting consumers. Verify the lender’s FCA registration status before proceeding.

2. Transparent Rates and Fees

Transparency is key when assessing any financial product. A direct lender should clearly disclose all rates and additional fees associated with the loan. Avoid any lender who shrouds these costs in ambiguity, as it could signal hidden fees or unfavourable loan terms.

3. Flexible Loan Terms

Flexible loan terms can be beneficial when you need to tailor repayments around your personal circumstances. Look for lenders who offer variable repayment options without hefty penalties for early repayment.

4. Solid Reputation and Reviews

Customer reviews can be incredibly telling about a lender’s reputation and past performance. Explore independent review platforms and look for patterns of positive feedback or consistent warnings from previous borrowers.

5. Straightforward Application Process

A cumbersome and lengthy application process can exacerbate your financial stress. Prefer lenders with streamlined, user-friendly applications that can be completed online without unnecessary steps.

6. Data Security and Privacy

In our digital age, safeguarding your personal and financial information is non-negotiable. Ensure your potential lender implements robust data security measures to protect your information from cyber threats.

Conclusion

Choosing a direct lender for your payday loan requires due diligence and careful consideration. While payday loans offer quick financial relief, selecting the wrong lender could lead to more financial distress. Prioritize lenders who comply with regulatory standards, offer transparency in their rates, and foster a positive reputation among users. By doing so, you ensure that your financial decisions are both informed and beneficial to your long-term financial health.


  

 

How AI is Revolutionizing the Financial Industry?

Artificial intelligence (AI) is changing the way financial institutions operate. From preventing fraud to helping people manage their money more effectively, AI is becoming essential to the financial world. Banks, lenders, investment firms, and even insurance companies use AI to improve efficiency, reduce risks, and enhance customer experiences.

For many people, AI in finance still feels like a complex topic. But AI already influences how we borrow money, invest, and even protect our personal data. This article will explain how AI transforms finance, making financial services smarter, safer, and more accessible.

AI in Fraud Detection

Financial fraud is a multi-billion-dollar problem. In 2023, the Federal Trade Commission (FTC) reported that fraud losses in the U.S. exceeded $10 billion. AI is now a key player in detecting and preventing fraud before it causes significant damage.

Here’s how AI helps fight fraud in real life:

  • Account protection. If someone tries to log in from an unfamiliar device or unexpectedly changes settings, AI notices and blocks suspicious activity.
  • Detection of fake documents. Fraudsters create fake IDs using stolen data, but AI scans financial databases and finds discrepancies, preventing them from opening fictitious accounts.
  • Biometric security. Banks actively use AI for facial recognition and voice authentication to make sure that the client is them and not a fraudster.
  • Instant transaction monitoring. AI analyzes millions of transactions per second, identifying suspicious patterns — for example, frequent small write-offs, unusual places of purchase, or quick transfers between accounts. This is how Mastercard leverages its AI capabilities to fight real-time payment scams.

AI in Credit Scoring

Previously, banks assessed borrowers based on limited criteria: credit history, debt level, and payment regularity. But, artificial intelligence makes this process more accurate by taking into account more factors and reducing the risk of errors.

Here’s what has changed since the introduction of artificial intelligence in finance:

  • Wider data analysis. Now, lenders look not only at traditional indicators, but also take into account rent payments, utility bills, and account transactions. This gives a chance to those who do not have a long credit history but have a stable income.
  • Applications are quickly approved. If a loan decision took several days previously, AI analyzes data in real-time and provides a result in minutes.
  • Less bias. With the development of AI, assessing borrowers has become more accurate. This is also noted by financial expert John Reeves from Magnolia Loans: “AI eliminates the human factor in credit scoring, which reduces the risk of errors and increases objectivity in decision-making.”
  • Personalized conditions. Instead of outdated models, banks can now offer interest rates more accurately reflect the borrower’s financial situation.

AI in Risk Management

Risk management is a top priority for financial institutions. Whether assessing borrowers’ creditworthiness, protecting investments, or ensuring stability in financial markets, AI is increasingly important in improving risk management efficiency and accuracy.

Here’s how financial artificial intelligence is helping with risk management today:

  • Market risk assessment. Hedge funds and investment firms, including BlackRock and Goldman Sachs, use AI-powered models to analyze market trends and predict fluctuations. This helps investors minimize losses during economic downturns.
  • Loan default prediction. AI models analyze borrowers’ credit histories, income levels,  employment stability, and even spending patterns to predict the likelihood of default.
  • Cybersecurity risk detection. AI detects vulnerabilities in banking systems, identifying patterns that indicate hacking attempts or data breaches before they happen.
  • Real-time transaction monitoring. AI-powered software, such as Fiserv’s Risk & Fraud Solutions, monitors real-time banking transactions, identifying potential fraud or financial instability.

AI in Customer Service

AI in banking and finance is changing the way we interact with customers. Chatbots, virtual assistants, and AI-powered customer service tools make banking more efficient by answering questions, solving problems, and offering financial advice.

Many major banks provide AI-powered virtual assistants that help customers with everything from checking their balances to scheduling bill payments. These AI-powered assistants reduce the workload on the call center and instantly answer common banking queries.

AI is also improving customer personalization. For example, AI-powered recommendation systems analyze spending habits and suggest savings plans, credit card upgrades, or investment opportunities based on the user’s financial behavior.

Another key benefit is accessibility. Voice assistants and chatbots in consumer finance allow customers to interact with their banks 24/7 without waiting for a human agent. This ensures that people can get help anytime, whether verifying a transaction or disputing a payment.

AI in Investment Strategies

Investing is no longer limited to professionals. AI-powered tools help individuals and companies make smarter investment decisions by analyzing market trends, risks, and opportunities faster than any human could.

Here’s how AI is used in investing today:

  • Automated portfolio management. Robo-advisors use AI to create and rebalance portfolios based on a user’s financial goals and risk appetite.
  • Market trend analysis. AI-powered software scans news articles, earnings reports, and stock price movements to identify profitable investment opportunities. Bloomberg Terminal integrates AI-powered analytics to help investors make informed decisions.
  • Algorithmic trading. Hedge funds use AI to automate trading strategies, reducing the need for emotional decision-making and improving trade execution.
  • Alternative data analysis. AI processes non-traditional data sources, such as satellite imagery and social media sentiment, to predict stock performance.

AI in Compliance

Regulatory compliance is a major challenge for banks, but AI is helping institutions stay within the law by automating complex reporting and monitoring processes.

Banks must comply with regulations such as the Bank Secrecy Act (BSA) and Dodd-Frank Act, which mandate strict anti-money laundering (AML) policies. AI helps by scanning transactions and detecting potential money laundering schemes. Software from companies like FICO and SAS uses AI to analyze financial activity and flag suspicious transactions for further investigation.

Another area where AI is making compliance easier is data protection. Regulations like the Gramm-Leach-Bliley Act (GLBA) require banks to safeguard customer information. AI-powered cybersecurity tools detect vulnerabilities in banking systems and prevent data breaches.

The Dark Side of Artificial Intelligence in Financial Services

AI in finance comes with risks and ethical concerns that need careful oversight.

Here are the main problems and risks:

  • Data privacy concerns. AI systems collect massive amounts of financial data, increasing the risk of security breaches.
  • Algorithmic bias. If AI models are trained on biased data, they can reinforce discrimination in lending and hiring decisions.
  • There is a lack of transparency. AI-powered financial models often operate as “black boxes,” making it difficult to understand how decisions are made.
  • Cybersecurity threats. Cybersecurity threats continue to increase, especially from hackers using artificial intelligence. These hackers conduct sophisticated phishing, social engineering, and voice and video cloning attacks, which threaten the security of AI-based financial systems.

Is There a Future for AI in Banking and Financial Services? 

In the future, artificial intelligence (AI) will become an integral part of financial services, helping to create safer, more efficient, and personalized solutions for consumers. AI is expected to be more deeply integrated into various aspects of the financial sector, from risk assessment to fraud prevention, opening up new horizons for improving the quality of service.

One of the most significant changes will be the mass adoption of AI-based voice banking. This technology will allow customers to safely manage their accounts, make transfers, and receive advice using voice commands. Systems such as voice assistants and chatbots can already understand and process requests, but they will be significantly improved in the future. AI will learn to recognize context, intonation, and nuances of speech, providing customers with more personalized and efficient services.

Fraud has always been one of the biggest problems in the financial sector, and AI will play a key role in its prevention in the future. Today’s systems already use algorithms to analyze transactions and identify suspicious activity, but in the coming years, AI will become even more accurate and faster at detecting fraud. Systems will be able to respond to current threats and predict new types of fraud, adapting to the constantly changing methods of attackers. This will allow the blocking of unwanted transactions and the warning of clients about possible risks in real-time.

Robo-advisors using AI are already helping investors make decisions based on analytics and current market trends. In the future, these technologies will be even more advanced, with the ability to personalize advice for each client based on their financial goals, risk tolerance, and life circumstances. AI will analyze large amounts of data, including historical trends, customer behavior, and economic forecasts, to provide recommendations that best suit individual needs.

However, introducing AI in banking and finance will raise new ethical questions. How will fairness and transparency in decision-making be ensured? Who will be held responsible if AI makes a mistake? In the future, new rules and standards will be developed to regulate the use of AI to prevent possible risks associated with discrimination, unauthorized access to data, and violation of consumer rights. These measures will create a balanced and safe interaction between people and artificial intelligence in the financial sector.

 

Power Capital Renewable Energy, in partnership with AIB, Bank of Ireland and Societe Generale, has successfully completed a project finance round to develop approximately 300MW of solar farms across Ireland

Power Capital Renewable Energy, in partnership with AIB, Bank of Ireland and Societe Generale, has successfully completed a project finance round to develop approximately 300MW of solar farms across Ireland.

This agreement secures facilities of nearly €220M to support the development of seven projects ranging in size from 6.5MW to 153MW.

The combined production of this portfolio will generate enough electricity to power over 70,000 homes per year.

All projects were awarded a tariff under the Department of Environment, Climate & Communication’s second Renewable Energy Support Scheme (RESS 2) in 2022.

Projects have commenced construction and are set to be completed and operational in 2026, contributing significantly to the government’s goal of generating 80% of Ireland’s energy from renewable sources by 2030.

As part of the RESS 2 scheme, local communities will benefit from a contribution of €2 per MWh throughout the duration of the program.

Power Capital already has 230MW of fully operational projects since 2024 and continues to expand its portfolio, with an additional 400MW secured under the RESS 3 and RESS 4 schemes.

Power Capital: Justin Brown CEO says: “We have dedicated nearly 12 months to this transaction, encompassing seven solar projects across multiple counties and collaborating with various construction and finance teams to achieve a successful outcome. This is an outstanding achievement for Power Capital, our team and everyone involved. We are very excited to build on this success and advance our RESS 3 & 4 portfolio later this year.”

 AIB: Jim Arigho Director, Climate Capital says: “The rollout of utility scale solar energy generation is a vital component in Ireland meeting its Climate Action targets and complements wind energy generation.  This financing is a milestone on that journey and AIB is delighted to work with the Power Capital team again in helping Ireland make the transition to a more sustainable future.”

 Bank of Ireland: Michael Lauhoff, Head of Specialist Banking, Corporate & Commercial commented:  “Bank of Ireland is delighted to support Power Capital in reaching this important milestone. The debt package will finance the delivery of a scaled and diversified portfolio of solar assets which will directly contribute to decarbonising Irish energy. As a long-term financier of Irish renewables, the provision of capital to the sustainable energy market is a key strategic ambition for Bank of Ireland and we are proud to be part of these exciting projects.”

 Societe Generale said: “Societe Generale is delighted to support the development of Power Capital, one of the leading Irish renewables developers, and have worked alongside Power Capital, AIB, and Band of Ireland since the start to bring the financing to a successful close. The portfolio of solar farms could contribute towards Ireland’s 2030 renewable generation targets and the development of renewable assets in the country.”

More than half of organisations in Ireland now using AI

New research from KPMG reveals the extent to which artificial intelligence (AI) is being deployed in Irish organisations’ finance operations – with compelling levels of ROI and a wide range of benefits including better data and decisions, lower costs, and greater ability to predict trends. Over half of organisations in Ireland (54 percent) are now using AI across their finance function, lower than 71 percent seen globally. Meanwhile, over two-thirds (66 percent) are implementing some level of workflow automation in financial reporting. The report, titled “AI in finance”, covers 2,900 organisations across 23 countries and includes 100 responses from Ireland.

Commenting on the research findings, Keith Stafford, IT Audit Partner at KPMG in Ireland, said, “Our research confirms AI is continuing to have a profound effect on how companies operate, including their systems, processes, controls, and governance over all areas of the finance function, and this is set to accelerate in the next few years. AI will transform not only the technical aspects of financial operations but also fundamentally reshape strategic decision-making and risk management practices. The increasing adoption of AI reflects its critical role in driving efficiency, accuracy, and predictive capabilities, which are essential for staying competitive in an ever-evolving marketplace.

The integration of AI in financial services is not just a trend but a transformative shift. Our research highlights the significant strides companies are making in AI adoption, as well as the challenges they face. It is essential for organisations to invest in talent development and establish robust guidelines to harness the full potential of AI responsibly.”

AI Adoption Trends

The research indicates that AI adoption is most prevalent in Treasury Management, followed closely by Financial Planning, Accounting, Tax, and Operations and Risk Management. This trend underscores the growing adaptation of AI to streamline and enhance financial processes. The research also finds two-thirds (66 percent) of companies have implemented some level of automation in their financial reporting workflows. Additionally, 25 percent of respondents plan to adopt automation in the near future. This shift towards automation reflects the industry’s commitment to improving efficiency and accuracy in financial reporting.

The top benefits of AI identified in the research include:

  • Enabling better data-driven decisions (38 percent)
  • Lowering operational costs (37 percent)
  • Enhancing the ability to predict trends (36 percent)

ROI of AI Initiatives and Investment

Almost half (49 percent) of those surveyed reported that the return on investment (ROI) of their AI initiatives is meeting or exceeding expectations, compared to 65 percent globally. This highlights the tangible benefits that AI brings to the financial services sector, encouraging further investment and innovation. AI is also now reported to account for nearly 15 percent of the IT budget for businesses, with projections indicating that this figure is set to double within the next three years.

Challenges and Guidelines

Despite the promising trends, the research highlights limited AI skills and talent as the biggest barrier to AI adoption. Companies are facing challenges in finding and retaining skilled professionals who can effectively implement and manage AI technologies. Nearly half (45 percent) of the surveyed companies have established AI control guidelines to ensure the responsible use of AI. These guidelines are crucial in maintaining ethical standards and mitigating risks associated with AI deployment.

Finally, the study also reveals that companies are increasingly looking to auditors in particular to provide more communication and insights about AI. This demand for transparency and guidance emphasises the need for auditors to stay informed and proactive in their approach to AI-related matters.

Revolut reaches 50 million customer milestone

Revolut, the global financial technology company and licensed European bank, has today announced that it has hit 50 million customers globally.

The company has reached the 50 million milestone at high-speed, growing by over 10 million customers in 2024 so far and becoming the most downloaded financial app in Europe.  It follows a bumper year for Revolut, which in 2024 received a $45 billion valuation, was awarded a UK bank licence with restrictions from the Prudential Regulation Authority (PRA) whilst in the mobilisation stage, and announced its 2023 Group revenues had surpassed $2.2 billion with record profits before tax of $545 million.

Revolut has aggressive plans to continue to grow its customer base towards the 100 million milestone, while also rolling out new and innovative services to become the primary bank of choice for its customers. 

Nik Storonsky, CEO of Revolut, commented: “Revolut exists for one reason: to simplify money for everyone, everywhere. This year we’ve taken huge steps forwards — breaking records, accelerating the speed at which we’re launching products and continuing to disrupt financial services globally. We’re moving faster than ever because we know the opportunity to revolutionise global financial services for our customers is still massive.”

Later this week Storonsky will take to the stage at the company’s The Revolutionaries event in London to celebrate its 50 million milestone, speaking alongside co-founder and CTO Vlad Yatsenko and entrepreneur Steven Bartlett. 

An exclusive event featuring revolutionary names across music, business, fashion, sport, gaming, travel and entertainment, The Revolutionaries will close with a headline performance from the iconic Charli XCX ahead of her sold-out UK tour.

For those outside of the UK, the event will be broadcast across YouTube and other streaming platforms.

Revolut Bank UAB (Irish Branch) was recognised by financial comparison site Bonkers.ie as ‘Ireland’s Best Consumer Business’ and ‘provider of the Best Current Account’ in 2024, while the company ranked 9th as part of the Ireland RepTrak® 2024 study earlier this year.