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Robo advisory and its potential in addressing the behavioral biases of investors — A qualitative study in Indian context

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  • Bhatia, Ankita
  • Chandani, Arti
  • Chhateja, Jagriti

Abstract

Technological developments have given shape to robotic services which have forayed in the finance and investment industry in the form of Robo-advisors. Robo-advisors are in use in the developed nations since over a decade but have recently entered the developing nations, like India, since early 2015. This research explores the present state of Robo-advisory services in the Indian context and investigates how Robo-advisors can help in mitigating behavioral biases of a retail investor.

Suggested Citation

  • Bhatia, Ankita & Chandani, Arti & Chhateja, Jagriti, 2020. "Robo advisory and its potential in addressing the behavioral biases of investors — A qualitative study in Indian context," Journal of Behavioral and Experimental Finance, Elsevier, vol. 25(C).
    • Handle: RePEc:eee:beexfi:v:25:y:2020:i:c:s2214635019302394
    DOI: 10.1016/j.jbef.2020.100281
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    Cited by:

    1. Lambrecht, Marco & Oechssler, Jörg & Weidenholzer, Simon, 2023. "On the benefits of robo-advice in financial markets," Working Papers 0734, University of Heidelberg, Department of Economics.
    2. Nourallah, Mustafa, 2023. "One size does not fit all: Young retail investors’ initial trust in financial robo-advisors," Journal of Business Research, Elsevier, vol. 156(C).
    3. Alexia Gaudeul & Caterina Giannetti, 2021. "Fostering the adoption of robo-advisors: A 3-weeks online stock-trading experiment," Discussion Papers 2021/275, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    4. Eman Ismail & Yasser Tawfik Halim & Mohamed Samy EL-Deeb, 2023. "Corporate reputation and shareholder investment: a study of Egypt's tourism listed companies," Future Business Journal, Springer, vol. 9(1), pages 1-15, December.
    5. Dominik M. Piehlmaier, 2022. "Overconfidence and the adoption of robo-advice: why overconfident investors drive the expansion of automated financial advice," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-24, December.
    6. Bai, Zefeng, 2021. "Does robo-advisory help reduce the likelihood of carrying a credit card debt? Evidence from an instrumental variable approach," Journal of Behavioral and Experimental Finance, Elsevier, vol. 29(C).
    7. Chaklader, Barnali & Gupta, Brij B. & Panigrahi, Prabin Kumar, 2023. "Analyzing the progress of FINTECH-companies and their integration with new technologies for innovation and entrepreneurship," Journal of Business Research, Elsevier, vol. 161(C).
    8. Zeeshan Ahmed & Shahid Rasool & Qasim Saleem & Mubashir Ali Khan & Shamsa Kanwal, 2022. "Mediating Role of Risk Perception Between Behavioral Biases and Investor’s Investment Decisions," SAGE Open, , vol. 12(2), pages 21582440221, May.
    9. Ahmed, Shamima & Alshater, Muneer M. & Ammari, Anis El & Hammami, Helmi, 2022. "Artificial intelligence and machine learning in finance: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 61(C).
    10. Cardillo, Giovanni & Chiappini, Helen, 2024. "Robo-advisors: A systematic literature review," Finance Research Letters, Elsevier, vol. 62(PA).
    11. Filiz, Ibrahim & Judek, Jan René & Lorenz, Marco & Spiwoks, Markus, 2021. "Reducing algorithm aversion through experience," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    12. Kumar, Satish & Rao, Sandeep & Goyal, Kirti & Goyal, Nisha, 2022. "Journal of Behavioral and Experimental Finance: A bibliometric overview," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    13. Sasichakorn Wongsaichia & Phaninee Naruetharadhol & Peerapong Wongthahan & Chavis Ketkaew, 2022. "Ideating A Sustainable Swine Feed Prototype: A Qualitative Approach in Farmers’ Pain Point Identification and Product Development," Sustainability, MDPI, vol. 14(7), pages 1-21, March.
    14. Königstorfer, Florian & Thalmann, Stefan, 2020. "Applications of Artificial Intelligence in commercial banks – A research agenda for behavioral finance," Journal of Behavioral and Experimental Finance, Elsevier, vol. 27(C).
    15. Muskan Sachdeva & Ritu Lehal & Sanjay Gupta & Aashish Garg, 2021. "What make investors herd while investing in the Indian stock market? A hybrid approach," Review of Behavioral Finance, Emerald Group Publishing Limited, vol. 15(1), pages 19-37, September.
    16. Jinesh Jain & Nidhi Walia & Simarjeet Singh & Esha Jain, 2022. "Mapping the field of behavioural biases: a literature review using bibliometric analysis," Management Review Quarterly, Springer, vol. 72(3), pages 823-855, September.
    17. Pandey, Dharen Kumar & Hassan, M.Kabir & Kumari, Vineeta & Zaied, Younes Ben & Rai, Varun Kumar, 2024. "Mapping the landscape of FinTech in banking and finance: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 67(PA).
    18. Goodell, John W. & Kumar, Satish & Lim, Weng Marc & Pattnaik, Debidutta, 2021. "Artificial intelligence and machine learning in finance: Identifying foundations, themes, and research clusters from bibliometric analysis," Journal of Behavioral and Experimental Finance, Elsevier, vol. 32(C).
    19. Shan, Shan & Umar, Muhammad & Mirza, Nawazish, 2022. "Can robo advisors expedite carbon transitions? Evidence from automated funds," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    20. Choudhary, Priya & Thenmozhi, M., 2024. "Fintech and financial sector: ADO analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 93(C).
    21. Athota, Vidya S. & Pereira, Vijay & Hasan, Zahid & Vaz, Daicy & Laker, Benjamin & Reppas, Dimitrios, 2023. "Overcoming financial planners’ cognitive biases through digitalization: A qualitative study," Journal of Business Research, Elsevier, vol. 154(C).
    22. Ida Ayu Agung Faradynawati & Inga-Lill Söderberg, 2022. "Sustainable Investment Preferences among Robo-Advisor Clients," Sustainability, MDPI, vol. 14(19), pages 1-16, October.
    23. Alexia GAUDEUL & Caterina GIANNETTI, 2023. "Trade-offs in the design of financial algorithms," Discussion Papers 2023/288, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    24. Seiler, Volker & Fanenbruck, Katharina Maria, 2021. "Acceptance of digital investment solutions: The case of robo advisory in Germany," Research in International Business and Finance, Elsevier, vol. 58(C).
    25. Mike K. P. So, 2021. "Robo-Advising Risk Profiling through Content Analysis for Sustainable Development in the Hong Kong Financial Market," Sustainability, MDPI, vol. 13(3), pages 1-15, January.

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