Citation

Ahmad-Nazmi, Aishah Nadhirah and Lye, Chun Teck and Tay, Lee Ying (2026) The role of advisory transparency in promoting financial robo-advisor adoption among low-income households in Malaysia. Social Sciences & Humanities Open, 14. p. 103701. ISSN 2590-2911

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Abstract

This study examines the influence of financial advisory transparency on robo-advisor adoption among low-income households in Malaysia within the framework of the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2). Data were collected from 336 respondents through a self-administered bilingual online questionnaire and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal significant positive effects of advisory transparency, performance expectancy, and price value on behavioral intention to use robo-advisors. Advisory transparency also serves as a complementary mediator between performance expectancy and behavioral intention, and between price value and behavioral intention, while indirectly mediating the effects of facilitating conditions and hedonic motivation on behavioral intention. The results suggest that robo-advisor adoption among low-income households is primarily associated with utilitarian considerations, particularly perceived performance, affordability, and access to information related to financial advisory services. This study extends the UTAUT2 model by incorporating advisory transparency as both a direct determinant of behavioral intention and a mediating mechanism linking selected UTAUT2 factors to robo-advisor adoption intention. The findings highlight the potential importance of transparency in shaping perceptions and intentions toward robo-advisory services among low-income households. From a practical perspective, the results suggest that policymakers and service providers may benefit from promoting greater transparency and trustworthiness in robo-advisory systems to encourage wider adoption. By facilitating access to digital financial advisory services, such efforts may support broader financial inclusion objectives and inform initiatives aimed at improving access to financial services among underserved populations.

Item Type:	Article
Uncontrolled Keywords:	Fintech, Low-income, Poverty, Robo-advisor, Transparency, UTAUT2
Subjects:	H Social Sciences > HJ Public Finance > HJ2005-2216 Income and expenditure. Budget
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	30 Oct 2026 00:54
Last Modified:	30 Oct 2026 00:54
URII:	http://shdl.mmu.edu.my/id/eprint/17014

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