Leveraging Robo-Advisory Services for Bank Competitiveness: A Case Study of First National Bank Botswana

This study investigates the capacity of robo-advisory services to improve financial institutions like First National Bank Botswana’s (FNBB) competitiveness within a changing digital financial environment. While AI-driven financial advisory services are gaining popularity globally, their implementation in developing nations is still constrained. This research utilises a mixed-methods approach, integrating semi-structured interviews with 15 FNBB management and surveys of 29 FNBB customers to evaluate awareness, desire to accept, and concerns related to robo-advisory services. Due to participant availability limits, purposive and convenience sampling were used to engage respondents who actively utilise digital banking services and may provide relevant views. The results indicate that FNBB may bolster client retention, augment operational efficiency, and secure a competitive edge through the adoption of robo-advisory services. Obstacles to adoption include confidence in AI-driven decision-making, regulatory ambiguity, and data security threats must be resolved. This research enhances the existing literature on artificial intelligence in African financial services and provides pragmatic advice for banks contemplating the use of robo-advisory services, especially in developing economies.