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The Adoption of Robo-Advisory among Millennials in the 21st Century: Trust, Usability and Knowledge Perception

Tan Zi Yi, Noor Ashikin Mohd Rom (), Nurbani Md. Hassan, Mohamad Shaharudin Samsurijan () and Andrew Ebekozien
Additional contact information
Tan Zi Yi: Faculty of Management, Multimedia University, Cyberjaya 63100, Selangor, Malaysia
Noor Ashikin Mohd Rom: Faculty of Management, Multimedia University, Cyberjaya 63100, Selangor, Malaysia
Nurbani Md. Hassan: UniKL Business School, Universiti Kuala Lumpur, Kuala Lumpur 50250, Kuala Lumpur, Malaysia
Mohamad Shaharudin Samsurijan: School of Social Science, Universiti Sains Malaysia, Gelugor 11800, Pulau Pinang, Malaysia
Andrew Ebekozien: School of Social Science, Universiti Sains Malaysia, Gelugor 11800, Pulau Pinang, Malaysia

Sustainability, 2023, vol. 15, issue 7, 1-16

Abstract: Robo-advisor has become the new personal wealth management and investment method. Nonetheless, certain predicaments are faced by robo-advisor companies as a tech-savvy young group of individuals seems to be less willing to adopt robo-advisory. This study investigates millennials’ adoption of robo-advisory in terms of financial knowledge, trust and usability perception in the 21st century to enhance sustainability. This quantitative study focuses on individuals belonging to the millennial generation who were born between 1981 and 1996. The findings indicate that the millennials who possess financial knowledge, as well as perceived usability and trust have a significant positive effect on the willingness to embrace robo-advisory as a tool for wealth management. The higher the financial knowledge of an individual, the more likely they are willing to adopt a robo-advisor. Government may provide appropriate avenues to enhance financial knowledge, and credible and user-friendly platforms with resources to boost the millennials’ usage of robo-advisors for their wealth management. With robust artificial intelligence, robo-advisory continues to support users, especially millennials, through three dimensions of sustainable development: environment, society, and economy.

Keywords: financial; FinTech; millennials; robo-advisory; technology (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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