Beyond trust: drivers of robo-advisory acceptance in financial services

Purpose This research aims to investigate the determinants affecting the willingness to adopt robo-advisors for investment, emphasizing the significance of trust in combination with other critical variables, including regulatory support (RS), fintech awareness (FA), perceived personalization, perceived risk (PR) and performance efficacy. Design/methodology/approach The research expands upon established technology adoption models to examine how these variables collectively influence users’ adoption decisions. Data were gathered from a sample of 213 users via a survey, and the interrelationships among these parameters were examined using partial least squares structural equation modeling. Findings The findings suggest that trust does not significantly impact the tendency to adopt robo-advisors. Nonetheless, perceived benefit (PB), including cost reduction and enhanced accessibility, favorably impacted adoption, whereas PR, especially related to data protection and automation, served as obstacles. RS turned out to be crucial since it increased trust in technology’s dependability and security. In addition, FA was substantial, with experts demonstrating a greater willingness to adopt robo-advisory services. The study indicates that, whereas trust did no=t serve as an essential variable in this setting, other elements, such as PBs, RS and FA, are crucial in facilitating adoption. Originality/value The study contributes to financial institutions to attain benefits of robo-advisors, improve security to build trust and educate customers about fintech to increase adoption of financial services. In addition, this research provides useful policy guidelines for policymakers to build regulatory frameworks and facilitate the expansion of robo-advisory services.