Abstract

In the recent years, Robo Advisor, a digital platform that provides automated, algorithm-driven financial planning services, has increasingly received attention from users of different demographics. Many users have taken advantage of its features to automate their saving and investing activities. However, users in an older age group, specifically, those aged fifty or above, have been seen with low adoption of the robo-advisory services. This empirical study is designed to explore the problems associated with older adults’ adoption of robo advisors. Specifically, this study intends to examine whether mental health of aging adults affects their intention to use robo advisors. In addition, I hypothesize that perceived usefulness may mediate the effect of mental health on behavioral intention towards using robo advisors, such that it serves to explain why various levels of mental health would result in differences in intention to use (i.e. approach or avoid robo advisors). To explore solutions for non-adoption, I identify three external variables (i.e. social influences, accessibility, and learning support) that could possibly moderate the main effects of mental health hypothesized in the study, so that when either of these variables is present and strengthened, it will enhance likelihood of using robo advisors.

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