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Forum | Papers » Trust and investment advice acceptance: a comparison between traditional and robo advising services

Trust and investment advice acceptance: a comparison between traditional and robo advising services

Caterina Cruciani, Gloria Gardenal, Lorenzo Tonon
April 2024 - n. 4
Keywords: Fiducia, consulenza finanziaria, consulenza automatizzata, bias della conferma, fiducia nell’automazione
Jel codes: G23, G41, C38, C83, C91

Robo advising is seen by many as an opportunity to broaden the pool of investors (lower costs and lower initial investment). Empirical analyses show its potential in Italy, especially within certain demographic groups and considering the generalised low level of financial literacy. This article focuses on the reasons for relying on a robotic consultant, expanding on some aspects already partially highlighted in the literature and extending the analysis to a less considered aspect: the role of trust in automation. Previous research shows that, as with a human advisor, receiving advice in line with one's ideas increases the propensity to rely on a robo advisor (confirmation bias). Furthermore, those who demonstrate greater trust in automated processes (and not just greater knowledge of robo advising services) are the subjects who most appreciate the advice of the robo advisor and who are more willing to accept the proposal at the expense of their initial investment idea, when the two diverge.

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