Factors Influencing the Adoption of Robo-Advisory Services in South Africa: Financial Services Professionals’ Perspectives
DOI:
https://doi.org/10.51137/wrp.ijarbm.565Keywords:
Robo-Advisory Services, Financial Technology, Financial Inclusion, South Africa, Technology AcceptanceAbstract
This study investigates financial services professionals’ perspectives on factors influencing the adoption of Robo-advisory services among South African retail investors. An exploratory qualitative design was employed, utilising semi-structured interviews with 20 experienced professionals from major institutions listed on the Johannesburg Stock Exchange. Reflexive thematic analysis yielded five interconnected themes: awareness and perceptions; behavioural biases and attitudes; trust and confidence in digital platforms; platform improvements to drive adoption; and additional contributing factors. The findings reveal that behavioural biases, particularly loss aversion and preference for traditional advisory models, constitute significant barriers. Notably, the South African cultural financial obligation known as Black tax, rooted in the Ubuntu philosophy, emerged as a distinctive contextual factor requiring algorithmic accommodation. Trust is primarily mediated by institutional reputation rather than technical capability. Recommendations include hybrid human-digital models, gamification, multilingual interfaces, and culturally responsive algorithm design. The study contributes to technology acceptance literature by demonstrating how culturally embedded financial obligations mediate perceived usefulness in emerging market contexts.
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