Examining the association between robo-advisory and perceived financial satisfaction

Zefeng Bai

Review of Behavioral Finance, 2024, vol. 16, issue 4, 668-681

Abstract: Purpose - Robo-advisory has become an increasingly popular asset management tool in recent decades. This paper studies the association between robo-advisor usage and perceived financial satisfaction. Design/methodology/approach - Using data extracted from the National Financial Capability Study 2015 (NFCS2015), the present study carried out a logistic analysis that examines the association between robo-advisory and perceived financial satisfaction. This model also studies the interaction effect of age on this association. Findings - The present study finds that robo-advisor usage is positively correlated with a person’s perceived financial satisfaction after controlling for covariates related to financial literacy and other demographic factors. Moreover, the present study reveals that age moderates the association between robo-advisory usage and financial satisfaction. The results are robust after regressing financial satisfaction on robo-advisory by different age groups. Originality/value - This paper extends existing literature on robo-advisory by showing that robo-advisory usage relates to a higher level of financial satisfaction. This finding helps understand the rapidly increasing trend of robo-advisory in the financial industry. Moreover, the present study reveals a moderate effect of age on the association between robo-advisory usage and perceived financial satisfaction.

Keywords: Robo-advisor; Financial satisfaction; Age; Financial education; Financial capability (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:rbfpps:rbf-10-2023-0268

DOI: 10.1108/RBF-10-2023-0268

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