IT meets finance: financial decision-making in the digital era

Francesco D’Acunto and Alberto G. Rossi

Chapter 16 in Handbook of Financial Decision Making, 2023, pp 336-354 from Edward Elgar Publishing

Abstract: We discuss how information technology has been transforming consumers’ financial decision-making through robo-advising, i.e. just-in-time scalable and portable advice delivered through FinTech applications. We start by describing the unique features that differentiate robo-advising from traditional IT applications to financial services and why such features represent transformational innovations in financial decision-making. We then focus on four pioneering commercial applications in the US and abroad - innovations that empower retail investors with the ability to perform highly-technical investment strategies, to engage in complex tax-saving operations (tax-loss harvesting), to easily access the wisdom of the crowd based on the real-time analysis of big data, and to disintermediate financial services and level the playing field between ordinary households and expert financial intermediaries (peer-to-peer lending). We conclude by discussing the interdisciplinary open questions of robo-advising applications in strategy, management, business, and law.

Keywords: Business and Management; Economics and Finance (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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