Influence of Robo Advisory in Investment Decision

Kevin Mulia Rachman, Citra Sukmadilaga

Abstract

This research is conducted to identify the potential influence of robo advisory, equipped with its features and technological improvements that would aid and assist in investment decision, and compare the relevancy as well as its efficiency to human financial advisor. The objective of this research is to study the discourse of robo advisor’s phase of development and the understanding on behavioral aspect in financial investment, in order to gain proper understanding on investor’s preference in accessing financial advisory services in order to aid in their investment decision. In this respect, the research is conducted through qualitative study, conducted through the process of interviewing a sample of respondents with substantial experience and exposure to financial investment, and had utilized financial advisory services, in which their response are further studied in a case basis through Analytic Hierarchy Process, to find out the relevance and the potency of robo advisors in comparison to human financial advisors in adjusting to investor’s investment decision as well as detecting behavioral investment pattern to determine its preferences to either alternatives of financial advisory. The result of the research indicates stronger preferences to human financial advisors rather than robo advisors, and emphasizes financial literacy as the most influential criteria in determining financial investment decisions.

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DOI: https://doi.org/10.24198/digits.v1i1.37806

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