Robo-advisor based on unified theory of acceptance and use of technology

Abstract

PurposeFollowing the advancement of financial technology (FinTech) in modern society to assist investment decisions, robo-advisers had become widely used in mean-variance analyses to allow investors to formulate efficiently diversified investment portfolios. However, the concept of robo-advisers is new, and few studies have addressed issues related to them. To help readers to better understand robo-advisor adoption by a wide range of potential customers, this study explores integrated models of the attitudes (ATT) and behavioural intentions (BI) of users towards robo-advisors.Design/methodology/approachA survey was used to gather data to determine how the unified theory of acceptance and use of technology (UTAUT) applies to robo-advisors. A total of 242 valid questionnaires were collected.FindingsThe results of our study show that performance expectations (PE), effort expectancy (EE), and social influences (SI) may have indirect influences on robo-advisor behavioural intention (BI) through attitudes. Furthermore, behavioural intention was also positively influenced by facilitating conditions (FC). Moreover, the investment to income ratio (IIR) moderated the relationship between the PE, EE, and SI influence on ATT. Additionally, experience is found to positively strengthen the relationship between EE and SI on ATT, and it moderated the relationship between FC and BI.Originality/valueThis research is expected to expand the use of UTAUT to tools in the field of financial investments and help financial sectors formulate suitable marketing strategies.

Understanding Consumers’ Barriers to Using FinTech Services in the United Arab Emirates: Mixed-Methods Research Approach

“…Particularly, contradictory findings have been reported in the context of FinTech. Rahim et al [52] found an insignificant influence on consumer perception, which conflicts with the conclusion of Yeh et al [53] who confirmed the relationship. These wildly divergent findings demonstrated the need to investigate how effort expectancies affect users' intentions to use FinTech services.…”

“…According to these studies, it is a crucial concept in the analysis of improved information system usage. The degree to which FinTech meets customer expectations is essential to fully understand its usefulness [23,52,53]. Therefore, consumers may be more likely to use these services if they believe FinTech would significantly improve their financial performance.…”

“…Likewise, contradictory findings about the function of social influence have been reported in FinTech research. Some studies supported the beneficial effects of social influence [23,52,53,59,71]. Others, however, claimed that it was not a significant factor in determining how consumers felt [58,59,72].…”

Systematic Literature Review on Robo-Advisery Adoption towards Young People

“…The results have produced a comprehensive analysis of the current patterns and trends in robo-advisers based on 11 research articles. Generally, regarding the year of publication, an article was published in 2019 and 2020 (Belanche et al, 2019;Fan & Chatterjee, 2020), two articles were published in 2021 (Au et al, 2021;Seiler & Fanenbruck, 2021;Cheng, 2021), and six articles were published in 2022 (Figà-Talamanca et al, 2022;Flavián et al, 2022;Isaia & Oggero, 2022;Jain & Raman, 2022;Kumari & Devi, 2022;Yeh et al, 2022).…”

“…Hence, it is necessary to gather supplementary data about the topic to enhance investors' comprehension of their complete potentials in addressing diverse financial-technology concerns. Yeh et al (2022) have also noted that the emergence of robo-advisers represents a relatively recent phenomenon, resulting in a limited body of research dedicated to exploring the associated concerns and challenges. Kraiwanit et al (2022) have conducted a study examining the impact of robo-adviser designs and mechanics on individuals' economic decision-making.…”