A Scoping Review on the Factors Affecting the Adoption of Robo-advisors for Financial Decision-Making

Robo-advisors have recently gained popularity as an algorithm-based method of simplifying financial management. The present study explores the factors that lead many potential consumers to use Robo-advisors in financial decisions. Adopting a scoping review approach formulated by Arksey and O'Malley, the study examines the factors affecting the acceptance and usage of financial Robo-advisors in different parts of the world. The results suggest that performance expectancy, effort expectancy, trust in technology, financial knowledge, investing experience, cost-effectiveness, facilitating conditions, and intrinsic motivation are positively related to adopting Robo-advisors. On the contrary, anxiety, risk perception, investor age, data security, and behavioral biases negatively influence the investor attitude toward Robo-advisors. This creates a barrier to the diffusion of financial Robo-advisors among the investors. The study concludes by providing recommendations to service providers, policymakers, and marketers for the speedy distribution and acceptance of algorithms for the public's financial decision-making. The study identifies gaps in the existing literature and suggests areas for future research for aspiring academics.