The Contribution of Robo-Advisors as a Key Factor in Commercial Banks’ Performance After the Global Financial Crisis

In several countries, digital financial advisory services, particularly those supported by robo-advisors, are becoming increasingly popular in retail banking. These tools assist users with financial decisions such as risk assessment, portfolio selection, and rebalancing—all at a reduced cost. Recent studies suggest that, over time, robo-advisors could complement human financial advisors. Building on this research, which evaluates robo-advisors’ effectiveness in asset allocation, this study aims to assess the impact of this strategic shift on retail banks’ profitability. It compares the Canadian and French banking sectors, where robo-advisors were introduced in the 2010s. Results indicate that implementing robo-advisors enhances profitability in non-interest activities, with this effect being more pronounced in France than in Canada.