An empirical analysis of the antecedents and barriers to adopting robo-advisors for investment management among Indian investors

ABSTRACT

This study aims to provide a research framework to understand the antecedents and barriers to adopting Robo-advisors for investment decision-making in India. The study employed a research model based on the extended UTAUT– 2, along with three additional constructs, i.e. personal innovativeness (PI), perceived risk (PR), and technological anxiety (TA). Data collected were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with the help of SmartPLS 4.0 software. This research will help banks, wealth management service providers, FinTech companies, and Robo-advisor developers improve their platforms, offers, products, and marketing tactics for these automated advisory services.

KEYWORDS:

• Artificial intelligence
• FinTech
• investment decision-making
• Robo-advisors
• technology adoption
• UTAUT-2

JEL classification:

• D14
• G11
• G23
• O14
• O33

Disclosure statement

No potential conflict of interest was reported by the author(s).

Supplementary material

Supplemental data for this article can be accessed online at https://doi.org/10.1080/17520843.2024.2341530

Additional information

Notes on contributors

Indu Nain

Indu Nain is a Ph.D. scholar at the Christ (Deemed to be University), Bangalore, India. She is a budding researcher in the field of commerce. In her research, Indu Nain is interested in aspects related to finance, fintech, digital India, and Robo-advisory. She recently published an article in Managerial Finance.

Sruthi Rajan

Sruthi Rajan is an assistant professor at Christ (Deemed to be University), Bangalore, India. She received her Ph.D. from Pondicherry University, India. Her research interest areas are stock market crisis and contagion effects. She has published articles in quality journals, namely Financial Innovation, International Journal of Emerging Markets, and IIMB Management Review, in her area of research.

Natchimuthu Natchimuthu

Natchimuthu Natchimuthu comes with 16+ years of experience in Teaching and Research. Currently, he is working as an Associate professor at the Department of Commerce, CHRIST (Deemed to be University). Natchimuthu has a Ph.D. from Bharathiar University, Coimbatore, and a Master of Philosophy and Master of Commerce degree from Madurai Kamaraj University. His research interest lies in the field of financial econometrics, artificial intelligence, and particularly in the area of application of machine learning algorithms in finance. Dr Natchimuthu has published research papers in Scopus-indexed and other international Journals. His recent publications include “Volatility Spillover among Metals,” “Calendar Anomalies in Indian Stock Market,” and “Leverage Effect of Gold Prices in India.”

Girish Shivanna

Girish Shivanna is an assistant professor at Christ (Deemed to be University), Bangalore, India. He has an MCom, MPhil, MBA, and PhD. His research interest lies in the fields of insurance, banking, fintech, and customer behaviour. He has published research papers in Scopus-indexed and other international journals.