Artificial Intelligence in FinTech: understanding robo-advisors adoption among customers

Abstract

Purpose Considering the increasing impact of Artificial Intelligence (AI) on financial technology (FinTech), the purpose of this paper is to propose a research framework to better understand robo-advisor adoption by a wide range of potential customers. It also predicts that personal and sociodemographic variables (familiarity with robots, age, gender and country) moderate the main relationships. Design/methodology/approach Data from a web survey of 765 North American, British and Portuguese potential users of robo-advisor services confirm the validity of the measurement scales and provide the input for structural equation modeling and multisample analyses of the hypotheses. Findings Consumers’ attitudes toward robo-advisors, together with mass media and interpersonal subjective norms, are found to be the key determinants of adoption. The influences of perceived usefulness and attitude are slightly higher for users with a higher level of familiarity with robots; in turn, subjective norms are significantly more relevant for users with a lower familiarity and for customers from Anglo-Saxon countries. Practical implications Banks and other firms in the finance industry should design robo-advisors to be used by a wide spectrum of consumers. Marketing tactics applied should consider the customer’s level of familiarity with robots. Originality/value This research identifies the key drivers of robo-advisor adoption and the moderating effect of personal and sociodemographic variables. It contributes to understanding consumers’ perceptions regarding the introduction of AI in FinTech.

Service robot implementation: a theoretical framework and research agenda

“…Attitudes toward robots are shaped by culture (Bartneck, Suzuki, Kanda, & Nomura, 2007;Belanche, Casaló, & Flavián, 2019). Some evidence suggests Japanese customers are more prone to accept robots (MacDorman et al, 2009), and this trend might extend to other Asian cultures (Rau, Li, & Li, 2009).…”

“…Thus, customer involvement strongly determines service robot acceptance, as far as it is related to customer motivations and risk perceptions (Dholakia, 2001). Investing a small amount in a fund managed by a financial robo-advisor may seem like a game, but customers instead might reject a robo-advisor when they invest vast sums or to obtain a mortgage (Belanche et al, 2019). In a complementary sense, customer involvement could be increased by situational engagement induced by interacting with a robot, such as when customers enjoy the novel experience of interacting with a robot agent for the first time (Aaltonen et al, 2017).…”

Mobile Apps Use and WOM in the Food Delivery Sector: The Role of Planned Behavior, Perceived Security and Customer Lifestyle Compatibility

“…Previous literature focused widely on the concept of attitude and its influence on individuals' behavioral intentions, as proposed in the TPB model. Among other contexts, the influence of attitude was analyzed as a precursor of behavioral intentions in subjects' choices of tourist destinations [63], digital press [64], electronic public services [65], mobile commerce [66], and artificial intelligence services [67].…”

Robo-advisors and the financialization of lay investors

“…The increased digitalization of financial practices calls for a deeper inquiry into the role of non-human actors in enrolling consumers into the financial system. Studies have explored how robo-advisors promote the formation of healthy investor subjects by reducing risk through automating portfolio diversification and correcting behavioral (cognitive and emotional) bias ( D’Acunto et al, 2019 ) and examined the factors influencing their adoption ( Belanche et al, 2019 ). While Hayes (2019) has focused on the disciplining power of sociotechnical assemblages of robo-advisors in controlling investor behavior, the role of robo-advisors in shaping the experiences of financial subjects within the financialization of daily life has not been studied thus far.…”