Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

8-2021

Abstract

Advancements in technology are now allowing non-human actors in the form of robot-advisors, driverless cars, medical assistants to perform increasingly complex tasks. While technological change is as old as civilization, these non-human actors can do novel tasks. One such task is that they provide advice which is a credence service (Dulleck, & Kerschbamer, 2006). Using a financial services context this thesis studies the role trust plays in advice acceptance.

Robo-advisors are rapidly replacing human financial advisors as the agent-provider for portfolio investment services. For centuries, it was the banker (human financial advisor) who was responsible for providing his investors with advice on what assets to invest in. However, advice acceptance depends on trust and the global financial crisis of 2008 saw a major dip in trust in financial service providers. Financial Advice acceptance from non-human actors is hypothesised to be based on trustor’s beliefs on technology, risk aversion, and general trust propensity. It is also based on the Trust Worthiness of the Robo-advisor. Trust Intentions translate into Trust Behaviours.

The proposed model is validated using an online survey where the respondents are provided simulated exposure to a Robo-Advisory process. The study is expected to provide practitioners in the fintech world insights on how to increase adoption. It may potentially assist in the creation of a generalizable across industry model for advice-acceptance from non-human actors.

Keywords

Robo-Advisor, Fintech, Online-Trust, AI, Advice

Degree Awarded

Doctor of Business Admin

Discipline

Artificial Intelligence and Robotics

Supervisor(s)

GEORGE, Gerard

First Page

1

Last Page

92

Publisher

Singapore Management University

Copyright Owner and License

Author

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