BRIDGING FINANCIAL LITERACY AND TECHNOLOGY: THE ROLE OF ROBO-ADVISORS AMONG INDONESIAN GEN Z

• Main Author: Nur Hasanah, Eneng
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86733
• Institution: Institut Teknologi Bandung

The rise of financial technology through robo-advisors has significantly increased the use of technology in the financial sector across various demographics, particularly among Generation Z, a cohort known for its strong affinity with gadgets, technology, and social media. This aligns with data from the Indonesian Capital Market Statistics (2021–2024), which reveal a significant surge in investors under 30 years old, predominantly from Generation Z. Although young investors currently hold fewer total assets compared to other age groups, their growing involvement highlights the potential to expand Indonesia’s investor base in the coming years. Based on these trends and phenomena, this study aims to explore the potential of financial robo-advisors from multiple perspectives, offering a comprehensive understanding of their role in Indonesia's financial ecosystem. The study places particular emphasis on Generation Z as future pioneers while uncovering the fundamental factors influencing the adoption of robo-advisors. In its implementation, this research employs several methods: First, literature exploration as the foundational review that produces a research roadmap for robo-advisors research. Second, proposed conceptual framework which integrate the sentiment analysis into financial market analysis to enhance the decision-making capabilities of robo-advisors. Third, investigation of Gen Z attitudes toward investment and the use of robo-advisor applications. Findings indicate that the young investors are inclined to explore alternative investment options, and often disregard recommendations from robo-advisors, although it aligned with their risk tolerance. To address this, the fourth study investigates the relevant risk profiling questions and tailored to the Indonesian context, such as: financial product knowledge, investment experience, risk tolerance, and financial health for a more accurate assessment of investor profiles. Fifth, the analysis of Financial Content Enthusiasm, which serves as a foundation for the sixth research about the financial influencers (finfluencers). Where this study use content analysis to examines the role of finfluencers in disseminating financial knowledge. The findings reveal that not all finfluencers possess the credibility or certification to provide reliable financial education on social media. Therefore, in the future, it is essential to establish specific regulations governing the dissemination of educational information to ensure the creation of credible and accountable content.