The Role of Robo-Advisors for Companies and Investors: A Comprehensive Analysis

Abstract

Robotic services, which have gained traction in the financial and investment sectors as robo-advisors, stem from technological advancements. While industrialized nations have utilized robo-advisors for over a decade, developing countries like India began adopting them around early 2015. This study examines the current state of robo-advisory services in India and evaluates their potential to mitigate behavioural biases among retail investors. From an expert's perspective, the research provides an in-depth understanding of how robo-advisors can help reduce these biases. The professionals involved in the study come from senior management positions across India's BFSI, IT, Fintech, and NBFC sectors, or they work in middleware, product development, or QA teams. Using categories derived from the literature, a structured content analysis was conducted on the transcript. A key takeaway is the importance of improving investor awareness through education and fostering trust. The findings reveal that while robo-advisors are effective at risk assessment and client profiling, they still need to account for investor biases. Currently, robo-advisory systems lack full autonomy.