Critical Factors that Influence the Usage of Robo Advisor Application Based in Indonesia
Alicia Bernice, Kinanthi Marew, Siti Elda Hiererra · 2024
This research examines the variables that impact individuals' intent to purchase stocks through robo-advisor applications in Indonesia, adopting the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) approach. Despite the global rise in popularity of robo-advisors following the 2008 financial crisis, Indonesian investors continue to prefer traditional advisors due to factors such as limited expertise, technological constraints, and regulatory deficiencies. The study employed a quantitative methodology, specifically surveying 321 participants from the Jabodetabek region. The data that was gathered was further analyzed via Structural Equation Modeling (SEM). The results indicate that trust, hedonic motivation, and attitude have a considerable influence on the intention to employ robo-advisors. However, security, effort expectancy, social influence, performance expectancy, facilitating conditions, and price value do not significantly influence attitudes. The findings underscore the significance of trust and user experience when it comes to embracing robo-advisors. The paper offers useful insights for fintech companies and regulators in Indonesia to enhance the adoption of robo-advisors. It recommends prioritizing the establishment of trust, actively involving users, and providing clear regulatory guidelines.