Determinants of the intention to use financial robo-advisory in Malaysia

Chan, Siew Chen and Liew, Xin Wei and Lim, Jia Yi and Man, Siong Kit (2023) Determinants of the intention to use financial robo-advisory in Malaysia. Final Year Project, UTAR.

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Abstract

Financial Robo-Advisory (FRA) has been slowly taking over the market share of traditional human financial advisory in recent years, providing investors a platform to have customised investment suggestions without human intervention to avoid human errors and behavioural bias. As the introduction of FRA in Malaysia has been relatively slow compared to other countries, the factors that affect the intention to use FRA in Malaysia is needed to understand to improve the current situation of FRA development in Malaysia. This research is to study the determinants of intention to use FRA by 18-29 years-old Malaysians staying in the Klang Valley region of Malaysia. The Technology Readiness Model (TRI) is used as the main theoretical framework while Technology Acceptance Model (TAM) is used as the supporting theoretical framework for this study. The variables extracted from TRI model includes discomfort, insecurity, optimism, and innovativeness while variable from TAM model is the perceive usefulness. An online questionnaire survey was performed with the targeted participants of 18-29 years old individuals staying at Klang Valley region of Malaysia. Questions based on the variables was asked in the questionnaire and feedback were collected through Likert Scale and analysed using SmartPLS software. The result of this study shows that optimism, innovativeness insecurity and perceived usefulness have a significant relationship with the behavioural intention to use FRA in Klang Valley, Malaysia within the 18-29 years old range. However, discomfort was found insignificant in affecting the behavioural intention to use FRA in this study. Implications of this study are made for the academia, policy makers (regulators and government) and stakeholders (FRA providers and investors) for them to have a clearer picture of the factors affecting the intention to use FRA in Malaysia.

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