Work

The Adoption of Robo-Advisory among Millennials in the 21st Century: Trust, Usability and Knowledge Perception

Year: 2023

Type: article

Abstract: Robo-advisor has become the new personal wealth management and investment method. Nonetheless, certain predicaments are faced by robo-advisor companies as a tech-savvy young group of individuals seems to be less willing to adopt robo-advisory. This study investigates millennials’ adoption of robo-advisory in terms of financial knowledge, trust and usability perception in the 21st century to enhance sustainability. This quantitative study focuses on individuals belonging to the millennial generation who were born between 1981 and 1996. The findings indicate that the millennials who possess financial knowledge, as well as perceived usability and trust have a significant positive effect on the willingness to embrace robo-advisory as a tool for wealth management. The higher the financial knowledge of an individual, the more likely they are willing to adopt a robo-advisor. Government may provide appropriate avenues to enhance financial knowledge, and credible and user-friendly platforms with resources to boost the millennials’ usage of robo-advisors for their wealth management. With robust artificial intelligence, robo-advisory continues to support users, especially millennials, through three dimensions of sustainable development: environment, society, and economy.

Source: Sustainability

DOI: 10.3390/su15076016

Authors: Tan Zi Yi, Noor Ashikin Mohd Rom, Nurbani Md. Hassan, Mohamad Shaharudin Samsurijan, Andrew Ebekozien

Institutions: Multimedia University, University of Kuala Lumpur, Universiti Sains Malaysia, University of Johannesburg, Auchi Polytechnic

Language: English

Topic: Technology Adoption and User Behaviour

Subfield: Information Systems and Management

Field: Decision Sciences

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,447

Funder: Universiti Sains Malaysia