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Introduction
Taiwan’s government strongly regulates and improves its financial systems, which results in low nonperforming loans and in stable and robust financial structures. Taiwanese investors rely on the financial specialists of domestic security companies for investment advice. However, recent scandals regarding insider trading and corrupt security traders have kept investors away from discussing investment decisions with financial specialists. Amid the emergence of artificial technology, robo-advisor services have become an alternative for younger and techno-oriented investors. The first robo-advisor services were launched in 2017 in Taiwan. Increasing attention to and requirements for artificial intelligence have caused abundant financial sectors to integrate the concepts of artificial intelligence (AI) into financial technology (FinTech) to create robo-advisor services to attract a wide range of potential customers (Belanche et al., 2019; Kremez et al., 2021). The products in which robo-advisors invest include exchange-traded funds (ETFs) and mutual funds. Figure 1 shows the operational flow of robo-advisors in Taiwan. They use a background condition to calculate the investment portfolio using artificial intelligence. During the investment period, they monitor whether the rate of return is in line with a user’s tolerable personal risk. Robo-advisers have the advantage of being able to provide new investment portfolios in a timely fashion so users can change their investment portfolios.
The advantages of automated financial management services can not only link the relationship between the marketer (financial adviser) and customer (client) to reduce switching costs and improve satisfaction and commitment (Vasudevan et al., 2006) but also minimize investment losses by regularly checking the rate of return on investment and notifying investors to change investment portfolios (Shanmuganathan, 2020). For potential customers, robo-advisors offer wealth management and investment advising automatically according to the analysis of opportunities to revolutionize capital investment trends (Belanche et al., 2019). With rapid advances in robo-advisors and technologies, users do not need to understand the complexity of the financial market but can easily access investment services with affordable advisory investment services (Hua et al., 2019). Furthermore, investors can invest as much as NTD 1,000 in Taiwan using robo-advisors. Compared to traditional fixed-term funds, the cost of investing using robo-advisors is relatively low. Whether an individual can access financial knowledge and suggestions regarding the investment amount or evaluate an investment’s...