University of Oulu

Aw, E.C.-X., Leong, L.-Y., Hew, J.-J., Rana, N.P., Tan, T.M. and Jee, T.-W. (2023), "Counteracting dark sides of robo-advisors: justice, privacy and intrusion considerations", International Journal of Bank Marketing, Vol. ahead-of-print No. ahead-of-print.

Counteracting dark sides of robo-advisors : justice, privacy and intrusion considerations

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Author: Aw, Eugene Cheng-Xi1,2; Leong, Lai-Ying3; Hew, Jun-Jie3;
Organizations: 1UCSI Graduate Business School, UCSI University, Kuala Lumpur, Malaysia
2Department of Business Administration, IQRA University, Karachi, Pakistan
3Faculty of Business and Finance, Universiti Tunku Abdul Rahman - Kampus Perak, Kampar, Malaysia
4College of Business and Economics, Qatar University, Doha, Qatar
5Department of Marketing, Management and International Business, Oulu Business School, University of Oulu, Oulu, Finland
6School of Business, Swinburne University of Technology - Sarawak Campus, Kuching, Malaysia
Format: article
Version: accepted version
Access: open
Online Access: PDF Full Text (PDF, 0.9 MB)
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Language: English
Published: Emerald, 2023
Publish Date: 2023-04-13


Purpose: Under the pressure of dynamic business environments, firms in the banking and finance industry are gradually embracing Fintech, such as robo-advisors, as part of their digital transformation process. While robo-advisory services are expected to witness lucrative growth, challenges persist in the current landscape where most consumers are unready to adopt and even resist the new service. The study aims to investigate resistance to robo-advisors through the privacy and justice perspective. The human-like attributes are modeled as the antecedents to perceived justice, followed by the subsequent outcomes of privacy concerns, perceived intrusiveness and resistance.

Design/methodology/approach: An online survey was conducted to gather consumer responses about their perceptions of robo-advisors. Two hundred valid questionnaires were collected and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).

Findings: The results revealed that (1) perceived anthropomorphism and perceived autonomy are the positive determinants of perceived justice, (2) perceived justice negatively impacts privacy concerns and perceived intrusiveness and (3) privacy concerns and perceived intrusiveness positively influence resistance to robo-advisors.

Originality/value: The present study contributes to robo-advisory service research by applying a privacy and justice perspective to explain consumer resistance to robo-advisors, thereby complementing past studies that focused on the technology acceptance paradigm. The study also offers practical implications for mitigating resistance to robo-advisors.

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Series: The international journal of bank marketing
ISSN: 0265-2323
ISSN-E: 1758-5937
ISSN-L: 0265-2323
Volume: In press
DOI: 10.1108/ijbm-10-2022-0439
Type of Publication: A1 Journal article – refereed
Field of Science: 512 Business and management
Copyright information: © Emerald Publishing Limited. This AAM is provided for your own personal use only. It may not be used for resale, reprinting, systematic distribution, emailing, or for any other commercial purpose without the permission of the publisher.