One size does not fit all: Young retail investors’ initial trust in financial robo-advisors
Year: 2022
Type: article
Study design: Observational Study
Abstract: Financial robo-advisors (FRAs) are a cutting-edge financial technology offering automated services that relies on artificial intelligence. However, few studies have investigated how young retail investors (YRIs) build trust in FRAs. Another neglected area is whether FRAs’ universal (“one-size-fit-all”) model will succeed or should take account of cultural dimensions. Based on the initial trust perspective and the unified theory of acceptance and use of technology, this study develops a conceptual model of YRIs’ initial trust in FRAs, testing it in two countries from different parts of the world, i.e., Malaysia and Sweden. The results indicate that trust propensity, performance expectancy, and hedonic motivation address initial trust in FRAs, which in turn drives behavioural intention to use this technology. Although most results are similar in the two countries, there are indications of cultural differences regarding what influences YRIs’ initial trust in FRAs.
Source: Journal of Business Research
Author: Mustafa Nourallah
Institution: Mid Sweden University
Language: English
Subfield: Information Systems and Management
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,440
OpenAlex ID: W4310067657