An Effective Solution for Investing Funds Through the Robo Advisor Bibit Application

Abstract

Investment regulates finance such that its value can grow and generate future profits. In Indonesia, investment is increasing yearly. The increase is supported by millennials who have adapted to technology that makes it easier to make digital mutual investments. Although the increase in mutual investment in Indonesia is quite rapid, it does not preclude the possibility that there are still many people who have not invested. The reason people have not invested is that they are afraid to take risks, and their income is low. These reasons can be minimized with the use of technology. Innovation in investing has given rise to modern technological advances such as fintech or financial technology like Robo Advisor. The method used in this study was the Partial Least Squares Structural Equation Modelling analysis technique, which was operated using SmartPLSver. 3 software. Data were collected through questionnaires. The study used quantitative methods and a sample of 200 respondents who had or would have invested through the Bibit application with the use of the Robo Advisor feature. The results of this study found that Robo Advisor can affect millennials’ investing through risk profiling, financial planning, and rebalancing. Keywords: decision making, financial planning, investment, risk profiling, rebalancing, Robo Advisor