Evaluating the Impact of Robo-Advisor Services on Customer Loyalty in the Chinese Fintech Sector: The Mediating Role of Customer Trust

Abstract

The following research aimed at evaluating how Robo-advisor services impact customer loyalty in the context of the fintech sector in China while investigating the mediating role of customer trust in the relationship between factors of these services. In order to achieve this aim, 351 eligible individuals who have experience in using Robo-advisors are recruited as samples to survey. Since Robo-advisor service providers in China face dilemmas and risks of breaching compliance requirements, which leave users concerned about the privacy of their funds, researching this area is crucial. The analysis of the survey findings with the help of SmartPLS has revealed that factors like perceived anthropomorphism and information quality of Robo-advisors and service commitment of fintech companies directly impact customer loyalty, whereas factors such as perceived autonomy of Robo-advisors and the quality of their service do not have any impact on the loyalty of customers. Additionally, trust has proved to be a mediator in the relationship between a few of these variables. These findings can help fintech companies provide the best quality Robo-advisor services to customers and build a loyal customer base. Users of Robo-advisors will also become aware of the factors that ensure the best possible service. However, future researchers are suggested to use a mixed method to get deeper qualitative and generalised quantitative findings, along with cross-country or cross-industry analysis to understand the impacts of cultural or industrial factors respectively.