Investigating the intention to adopt financial robo-advisors in Malaysia

Lim, Ching Er and Liew, Wei Zen and Kung, Sing Ya and Teoh, Keat Yee (2025) Investigating the intention to adopt financial robo-advisors in Malaysia. Final Year Project, UTAR.

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Abstract

Financial robo-advisors (FRA) have begun to attract attention in Malaysia’s financial industry, offering users customised investment portfolios without human intervention and requiring only a minimal investment amount. However, their adoption in Malaysia has been slower compared to regional counterparts such as Singapore and Hong Kong. Therefore, this study examines the factors influencing the intention to adopt FRA in Malaysia, using the Unified Theory of Acceptance and Use of Technology (UTAUT) as the underlying research framework. The independent variables drawn from UTAUT are performance expectancy, effort expectancy, social influence, and facilitating conditions, with an additional factor of financial knowledge incorporated into the model. The study targeted individuals aged 18 to 30 across all regions of Malaysia. Data were collected via an online questionnaire and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS software. The results indicate that performance expectancy, effort expectancy, social influence, and financial knowledge significantly influence the intention to adopt FRA, whereas facilitating conditions have no significant effect. These findings provide valuable insights into the adoption intentions of young Malaysians and offer theoretical and practical implications for researchers, financial institutions, and policymakers seeking to promote the development of robo-advisors in Malaysia. Keywords: UTAUT, financial knowledge, robo-advisors, PLS-SEM, technology adoption Subject Area: HG 4621 Stockbrokers. Security dealers. Investment advisers.

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