The Contribution of Robo-Advisors as a Key Factor in Commercial Banks’ Performance After the Global Financial Crisis

Félix Zogning () and Pascal Turcotte
Additional contact information
Félix Zogning: School of Management, Université de Sherbrooke, Sherbrooke, QC J1K 2R1, Canada
Pascal Turcotte: Canadian Imperial Bank of Commerce, Toronto, ON M5J 0E7, Canada

FinTech, 2024, vol. 4, issue 1, 1-15

Abstract: In several countries, digital financial advisory services, particularly those supported by robo-advisors, are becoming increasingly popular in retail banking. These tools assist users with financial decisions such as risk assessment, portfolio selection, and rebalancing—all at a reduced cost. Recent studies suggest that, over time, robo-advisors could complement human financial advisors. Building on this research, which evaluates robo-advisors’ effectiveness in asset allocation, this study aims to assess the impact of this strategic shift on retail banks’ profitability. It compares the Canadian and French banking sectors, where robo-advisors were introduced in the 2010s. Results indicate that implementing robo-advisors enhances profitability in non-interest activities, with this effect being more pronounced in France than in Canada.

Keywords: robo-advisor; retail banking; profitability; portfolio management; non-interest margin (search for similar items in EconPapers)
JEL-codes: C6 F3 G O3 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2674-1032/4/1/2/pdf (application/pdf)
https://www.mdpi.com/2674-1032/4/1/2/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jfinte:v:4:y:2024:i:1:p:2-:d:1554791

Access Statistics for this article

FinTech is currently edited by Ms. Lizzy Zhou

More articles in FinTech from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().