Virtual Reality Applications for a Robo-Advisory System: Impact and Challenges

The emergence of Robo-Advisor (RA) systems has transformed traditional financial services, yet adoption among certain demographic groups remains challenging. This study investigates the potential of Virtual Reality (VR) elements to enhance the adoption of RA platforms across diverse user groups. Through designed online experiments, participants’ engagement with VR-augmented RA platforms was analyzed to discern the impact of VR on user trust, engagement and adoption intentions. Results revealed that the use of VR significantly improves the emotive and psychological aspects of using an RA, though not the cognitive aspects. The study concludes that VR is able to build trust, increase engagement and encourage new adoption of RA services, especially for resistant demographic groups. This study paves the way for future research in the use of VR as a viable tool for enhancing user trust in technology platforms, and in promoting financial literacy and financial inclusion.