Financial attributes, financial behaviors, financial-advisor-use beliefs, and investing characteristics associated with having used a robo-advisor

Abstract

This study investigates the financial attributes, financial behaviors, financial-advisor-use beliefs, and investing characteristics associated with having used an automated investment solution (i.e., a robo-advisor). Data are used from the 2015 National Financial Capability Study (both the State-by-State Survey and the Investor Survey) to investigate the use of robo-advisors among 1,393 individuals with non-retirement investment accounts. Multivariable results indicated that being younger, having low or midrange income, and having lower objective investment-knowledge scores was positively associated with robo-advisor use. This study provides important insight for policymakers, financial practitioners, and proprietors of robo-advisors and other fintech products.