Abstract
We study the introduction of robo-advising on a large representative sample of Employee Saving Plans. Differently from many services that fully automate portfolio decisions, our robo-advisor proposes investment and rebalancing strategies, leaving investors free to follow or ignore them. We investigate the resulting human-robot interactions and show that with the robo-service investors increase their attention to the portfolio, their investment in the plan and their equity exposure. They experience higher risk-adjusted returns, mostly by changing their rebalancing behaviours and staying closer to the target. We discuss how automated advice can promote financial inclusion, and how human robot interactions can improve financial capability.
To find more, download the full paper.
Authors
