Paper Type

Complete

Paper Number

PACIS2025-1108

Description

In recent years, the financial services industry has experienced a substantial shift due to the emergence of technology-based financial services, commonly known as FinTechs. One notable example of this transformation is the rise of robo-advisors, which play a crucial role within the broader FinTech ecosystem. The rapid growth of the robo-advisory business has led to an increasing need for a comprehensive and systematic classification system that can be used to evaluate and compare different types of robo-advisors. Therefore, in this study, we iteratively develop a taxonomy of robo-advisor business models. The business model perspective is chosen since the business model concept serves as a valuable framework for understanding how technological progress can generate economic value. Besides a comprehensive robo-advisor business model taxonomy, comprising of 17 dimensions, we additionally conduct a cluster analysis.

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Jul 6th, 12:00 AM

Understanding the Revolution of Financial Advice: A Taxonomy of Robo-Advisor Business Models

In recent years, the financial services industry has experienced a substantial shift due to the emergence of technology-based financial services, commonly known as FinTechs. One notable example of this transformation is the rise of robo-advisors, which play a crucial role within the broader FinTech ecosystem. The rapid growth of the robo-advisory business has led to an increasing need for a comprehensive and systematic classification system that can be used to evaluate and compare different types of robo-advisors. Therefore, in this study, we iteratively develop a taxonomy of robo-advisor business models. The business model perspective is chosen since the business model concept serves as a valuable framework for understanding how technological progress can generate economic value. Besides a comprehensive robo-advisor business model taxonomy, comprising of 17 dimensions, we additionally conduct a cluster analysis.