Citation

Ahmad Nazmi, Aishah Nadhirah and Lye, Chun Teck and Tay, Lee Ying (2024) Promoting Robo-Advisor Adoption among B40 in Malaysia through Advisory Transparency and UTAUT Models. Engineering, Technology & Applied Science Research, 14 (6). pp. 18727-18733. ISSN 2241-4487

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Abstract

The B40 is generally considered to have disadvantages in financial literacy and monetary resources, which often prevents them from making sound investment decisions. Therefore, based on recent advances in Artificial Intelligence (AI) and financial technologies, the Unified Theory of Acceptance and Use of Technology (UTAUT), and the notion of advisory transparency as a mediator, this study investigates factors influencing the intention to adopt financial robo-advisors among the B40 in Malaysia. The 217 responses collected using self-administered bilingual questionnaires were analyzed using Structural Equation Modeling (SEM). The results show that advisory transparency plays a significant role in mediating performance expectancy, facilitating conditions and effort expectancy to robo-advisor adoption intention. Specifically, the results imply that better advisory transparency, performance, and facilitating conditions of robo-advisor usage with minimal effort can, directly and indirectly, promote the intention of robo-advisor adoption. Consistent with the characteristics of B40, who are typically risk-averse and lack digital finance literacy, the findings suggest that more emphasis should be placed on the transparency of the robo-advisory process and digital financial education to promote robo-advisor adoption among the B40. This study fills a gap by integrating advisory transparency into the UTAUT model and providing insight into how advisory transparency interacts with UTAUT factors in promoting robo-advisor adoption. The results of this study can be a reference for policymakers, particularly in devising social welfare and educational policies to eradicate poverty in the country.

Item Type:	Article
Uncontrolled Keywords:	Poverty, fintech, low-income groups, robo-advisor, investment
Subjects:	H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation > HG4900-5993 By region or country
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	03 Jan 2025 03:41
Last Modified:	03 Jan 2025 03:41
URII:	http://shdl.mmu.edu.my/id/eprint/13274

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