Business Model of Sustainable Robo-Advisors: Empirical Insights for Practical Implementation

Cam-Duc Au, Lars Klingenberger, Martin Svoboda and Eric Frère
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Cam-Duc Au: ISF Institute for Strategic Finance, FOM University of Applied Sciences for Economics and Management, 45127 Essen, Germany
Lars Klingenberger: ISF Institute for Strategic Finance, FOM University of Applied Sciences for Economics and Management, 45127 Essen, Germany
Martin Svoboda: Department of Finance, Faculty of Economics and Administration, Masaryk University, 601 77 Brno, Czech Republic
Eric Frère: ISF Institute for Strategic Finance, FOM University of Applied Sciences for Economics and Management, 45127 Essen, Germany

Sustainability, 2021, vol. 13, issue 23, 1-12

Abstract: The given research paper examines the characteristics of German private investors regarding the probability of using robo-advisory-services. The used data set was gathered for this purpose (N = 305) to address the research question by using a logistic regression approach. The presented logit regression model results indicate that the awareness of sustainable aspects make a significant difference in the probability of using a sustainable robo-service. Additionally, our findings show that being male and cost-aware are positively associated with the use of a sustainable robo-advisor. Furthermore, the probability of use is 1.53 times higher among young and experienced investors. The findings in this paper provide relevant research findings for banks, asset managers, FinTechs, policy makers and financial practitioners to increase the adoption rate of robo-advice by introducing a sustainable offering.

Keywords: robo-advisory; sustainability; innovation; financial services; asset management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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