E-trust Mediates the Role of the Robo-Advisor Feature on Mutual Fund Investment Intention Through the Bibit Application of Gen Z Malang Raya

Abstract

Mutual Fund investment is the right instrument for beginners and currently, with advancing technologies, it can facilitate the process of investing, for instance, using Bibit.id applications. One of the flagship features is a helper for the target user (a beginner or novice investor) to get the optimal portfolio, named Robo-Advisor. However, the adaptation process requires willingness or trust and is expected to increase intention in investing. Hence this study aims to test the role of e-trust in mediating between technology (Robo-Advisor) and behavior intention (investment intention). This study is an explanatory research that processes data from 120 respondents in the category of Gen Z in Malang Raya with specific criteria using the SEM-PLS method. The result concluded that the Robo-Advisor feature has a direct and significant effect on e-trust, the e-trust has a direct and significant effect on investment intention, and the Robo-Advisor feature affected investment intention mediated by e-trust. However, no direct influence was found on the Robo-Advisor feature on investment intention. So, Gen Z is a potential novice investor who intends to invest because it helped to get a suitable portfolio by entrusting the implementation of Robo-Advisor technology.
 Keywords: Robo-Advisor, E-trust, mutual fund, Bibit, Investment