The complementary effects of bank intangible value binding in customer robo-advisory adoption

Abstract

PurposeThis study aims to propose an integrated view and emphasize the importance of bank intangible value binding in customers' robo-advisory adoption. It explores the relationship between robo-advisors and traditional banking and defines the role of bank intangible assets value. It also attempts to understand if trust in the banking institution and the financial consultant determines the effect of these relationships.Design/methodology/approachThe target sample of the study was investors who currently use wealth management services. This study collected 228 valid questionnaires and then executed structural equation model analysis to test the hypotheses.FindingsResults showed that intangible value bindings play a mediating role, which positively affects consumers' willingness to adopt robo-advisors. Consumers' trust in banks and financial consultants are antecedent variables, which positively affect the intangible value bindings between consumers and banks. In addition, when the consumers' investment amount is higher, it will weaken the positive relationship between the intangible value binding and robo-advisor adoption intention.Originality/valueMost of the past studies have focused on whether robo-advisors would replace personal financial consultants. This study proposes a hybrid model that contains both robo-advisors and traditional banking services, which encourage the acceptance of robo-advisors.