The role of trust in financial robo-advisory adoption: A case of young retail investors in Pakistan
This study examines the trust of retail investors in financial robo-advisory (FRA) services and their intent to adopt them in Pakistan. It also explores the moderating role of age on trust propensity and initial trust. Data were collected from 924 retail investors through an online survey. Partial l...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2025-06-01
|
| Series: | Sustainable Futures |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S266618882500108X |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849694095388180480 |
|---|---|
| author | Zahid Bashir Sadia Farooq Muhammad Sabeeh Iqbal Muhammad Aamir |
| author_facet | Zahid Bashir Sadia Farooq Muhammad Sabeeh Iqbal Muhammad Aamir |
| author_sort | Zahid Bashir |
| collection | DOAJ |
| description | This study examines the trust of retail investors in financial robo-advisory (FRA) services and their intent to adopt them in Pakistan. It also explores the moderating role of age on trust propensity and initial trust. Data were collected from 924 retail investors through an online survey. Partial least squares structural equation modeling (PLS-SEM) was used to analyze the data. Results show that trust propensity, perceived ability of FRAs, hedonic motivation, social influence, effort expectancy, facilitating conditions, and price value positively impact initial trust. However, effort expectancy negatively affects trust due to digital illiteracy and complex FinTech solutions in Pakistan. Younger retail investors exhibit higher levels of initial trust and adoption intent compared to older investors. This study contributes to the literature by extending the Unified Theory of Acceptance and Use of Technology (UTAUT) model to trust in FRAs. It highlights the moderating effect of age in an emerging market context. Practical implications include enhancing digital literacy, improving internet infrastructure, promoting price transparency, and addressing risk aversion. Policymakers and financial institutions should consider these findings to increase trust and adoption of FRAs. The study focuses on Pakistan, but future research could expand to other emerging markets. |
| format | Article |
| id | doaj-art-b02cfc62779f4e538c3f5b3c0192ece1 |
| institution | DOAJ |
| issn | 2666-1888 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Sustainable Futures |
| spelling | doaj-art-b02cfc62779f4e538c3f5b3c0192ece12025-08-20T03:20:12ZengElsevierSustainable Futures2666-18882025-06-01910053810.1016/j.sftr.2025.100538The role of trust in financial robo-advisory adoption: A case of young retail investors in PakistanZahid Bashir0Sadia Farooq1Muhammad Sabeeh Iqbal2Muhammad Aamir3University of Gujrat, Pakistan; Corresponding author.University of the Punjab, Lahore, PakistanUniversity of the Punjab, Lahore, PakistanUniversity of the Punjab, Lahore, PakistanThis study examines the trust of retail investors in financial robo-advisory (FRA) services and their intent to adopt them in Pakistan. It also explores the moderating role of age on trust propensity and initial trust. Data were collected from 924 retail investors through an online survey. Partial least squares structural equation modeling (PLS-SEM) was used to analyze the data. Results show that trust propensity, perceived ability of FRAs, hedonic motivation, social influence, effort expectancy, facilitating conditions, and price value positively impact initial trust. However, effort expectancy negatively affects trust due to digital illiteracy and complex FinTech solutions in Pakistan. Younger retail investors exhibit higher levels of initial trust and adoption intent compared to older investors. This study contributes to the literature by extending the Unified Theory of Acceptance and Use of Technology (UTAUT) model to trust in FRAs. It highlights the moderating effect of age in an emerging market context. Practical implications include enhancing digital literacy, improving internet infrastructure, promoting price transparency, and addressing risk aversion. Policymakers and financial institutions should consider these findings to increase trust and adoption of FRAs. The study focuses on Pakistan, but future research could expand to other emerging markets.http://www.sciencedirect.com/science/article/pii/S266618882500108XFinancial robo-advisoryRetail investorsInitial trustBehavioral intentionsUnified theory of acceptance and use of technology |
| spellingShingle | Zahid Bashir Sadia Farooq Muhammad Sabeeh Iqbal Muhammad Aamir The role of trust in financial robo-advisory adoption: A case of young retail investors in Pakistan Sustainable Futures Financial robo-advisory Retail investors Initial trust Behavioral intentions Unified theory of acceptance and use of technology |
| title | The role of trust in financial robo-advisory adoption: A case of young retail investors in Pakistan |
| title_full | The role of trust in financial robo-advisory adoption: A case of young retail investors in Pakistan |
| title_fullStr | The role of trust in financial robo-advisory adoption: A case of young retail investors in Pakistan |
| title_full_unstemmed | The role of trust in financial robo-advisory adoption: A case of young retail investors in Pakistan |
| title_short | The role of trust in financial robo-advisory adoption: A case of young retail investors in Pakistan |
| title_sort | role of trust in financial robo advisory adoption a case of young retail investors in pakistan |
| topic | Financial robo-advisory Retail investors Initial trust Behavioral intentions Unified theory of acceptance and use of technology |
| url | http://www.sciencedirect.com/science/article/pii/S266618882500108X |
| work_keys_str_mv | AT zahidbashir theroleoftrustinfinancialroboadvisoryadoptionacaseofyoungretailinvestorsinpakistan AT sadiafarooq theroleoftrustinfinancialroboadvisoryadoptionacaseofyoungretailinvestorsinpakistan AT muhammadsabeehiqbal theroleoftrustinfinancialroboadvisoryadoptionacaseofyoungretailinvestorsinpakistan AT muhammadaamir theroleoftrustinfinancialroboadvisoryadoptionacaseofyoungretailinvestorsinpakistan AT zahidbashir roleoftrustinfinancialroboadvisoryadoptionacaseofyoungretailinvestorsinpakistan AT sadiafarooq roleoftrustinfinancialroboadvisoryadoptionacaseofyoungretailinvestorsinpakistan AT muhammadsabeehiqbal roleoftrustinfinancialroboadvisoryadoptionacaseofyoungretailinvestorsinpakistan AT muhammadaamir roleoftrustinfinancialroboadvisoryadoptionacaseofyoungretailinvestorsinpakistan |