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Technology Usage to Manage Client Growth: Understanding Robo-Advisor Adoption Among Registered Investment Firms

Chalk, Kevin
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Abstract

The purpose of this study was to examine the effects of fee discounts offered by Registered Investment Advisors (RIA) on the adoption of a robo-advisor solution by their clients within a hybrid investment services model. The analysis of fee discounts within the RIA model is based on assets under management, those less than $250 million and those above $250 million. In addition to analyzing fee discounts offered by an RIA, this study looks at the characteristics of clients using an RIA that has adopted a robo-solution. The findings suggest that RIA firms over $250 million, that offer a fee discount on a robo-solution, are likely to have higher adoption rates than smaller RIA firms. This study also finds that younger clients and clients with lesser investment knowledge have higher adoption of robo-solution offered by the RIA.

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Date
2021-05-02
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Research Projects
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Keywords
Robo-Advisor, Robo-Advising, Registered Investment Advisor, Registered Investment Advisors, Fintech, Wealth Management Technology
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