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The potential use of robo-advisors among the young generation: Evidence from Italy

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  • Isaia, Eleonora
  • Oggero, Noemi

Abstract

In this paper, we investigate the potential demand of robo-advisory among Millennials and the Generation Z. Using data from a survey that we designed and fielded in Italy, we show that individuals with an advanced level of financial knowledge are more likely to be potential users of robo-advisors. We also find that only online activities that entail a financial component, such as buying online and making digital payments, are predictive of being interested in the delivery of financial advice through digital platforms. On the other end, non-financial online activities are not associated with the interest in a FinTech robo-advising tool.

Suggested Citation

  • Isaia, Eleonora & Oggero, Noemi, 2022. "The potential use of robo-advisors among the young generation: Evidence from Italy," Finance Research Letters, Elsevier, vol. 48(C).
    • Handle: RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322002835
    DOI: 10.1016/j.frl.2022.103046
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    Cited by:

    1. Choung, Youngjoo & Chatterjee, Swarn & Pak, Tae-Young, 2023. "Digital Financial Literacy and Financial Well-Being," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Journal P, pages 1-1.
    2. Cardillo, Giovanni & Chiappini, Helen, 2024. "Robo-advisors: A systematic literature review," Finance Research Letters, Elsevier, vol. 62(PA).
    3. Choudhary, Priya & Thenmozhi, M., 2024. "Fintech and financial sector: ADO analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 93(C).
    4. Niszczota, Paweł & Abbas, Sami, 2023. "GPT has become financially literate: Insights from financial literacy tests of GPT and a preliminary test of how people use it as a source of advice," Finance Research Letters, Elsevier, vol. 58(PA).
    5. Oyku Yucel & Gizem Celik & Zafer Yilmaz, 2023. "Sustainable Investment Attitudes Based on Sustainable Finance Literacy and Perceived Environmental Impact," Sustainability, MDPI, vol. 15(22), pages 1-20, November.
    6. Zhu, Hui & Vigren, Olli & Söderberg, Inga-Lill, 2024. "Implementing artificial intelligence empowered financial advisory services: A literature review and critical research agenda," Journal of Business Research, Elsevier, vol. 174(C).
    7. Oehler, Andreas & Horn, Matthias, 2024. "Does ChatGPT provide better advice than robo-advisors?," Finance Research Letters, Elsevier, vol. 60(C).
    8. 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.

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    More about this item

    Keywords

    Robo-advisor; FinTech; Financial literacy; Financial advice;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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