An Empirical Study on Factors Influencing the Adoption of Robo-Advisory Services among Young Investors using TAM and UTAUT Models

Abstract

Wealth management is being greatly impacted by recent advancements in financial technologies (fintech), specifically the emergence of robo-advisors as an affordable and accessible means of receiving investment advice as opposed to traditional means. There continues to be numerous technological, behavioral, and psychological variables influencing the adoption of robo-advisors amongst younger investors, even though they are increasing adopted by this demographic. The goal of this study is to establish the antecedents of the adoption of robo-advisory services amongst young investors using the Technology Acceptance Model and the Unified Theory of Acceptance and Use of Technology as the theoretical framework. The study is based upon primary data collected from the administered structured questionnaire survey of recent college graduates and other young, prospective investors. The analysis includes the following constructs: Perceived Usefulness, Perceived Ease of Use, Social Influence, Facilitating Conditions, Trust, and Perceived Risk, and examining how these constructs affect both Behavioral Intent and Actual Adoption of robo-advisory services. Reliability analyses, Factor Analyses, and regression analyses will be conducted to validate the proposed research model. The expected outcomes of the study will show that Perceived Usefulness, Perceived Ease of Use, and Trust have a strong, positive influence on the adoption of robo-advisory services, while Perceived Risk will serve as a significant hindrance to that process. Young investors will be highly influenced by social factor and facilitating conditions; these aspects will significantly impact their ability to use fintech platforms successfully. This research adds new information on the increasing number of studies available in the area of fintech adoption and will provide practical guidance for fintech vendors looking to enhance trust and engagement among young investors.