Advising qualities are the most important factor in Robo advice

More and more financial institutions are introducing online financial advice (robo-advice). It is therefore important to understand what factors determine the customer experience. Diederick van Thiel and Fred Van Raaij, published in Economics World their scientific research on this subject and state that advising qualities are the most decisive factor for the customer experience of ‘robo advice’.

More and more banks are developing robo-advisors. These online platforms use big data and apply Machine Learning technology to serve the customer with personalised services.

First step in personalising robo-advice
“At the moment ‘robo advice’ is a one size fits all solution. This could be much better, much more tailored, ” Van Thiel says. The Digital Customer Experience (DCX) model developed by Van Thiel and Van Raay provide insights how to make Robo advice more personal, just as a personal financial adviser would do. This involves really understanding the customer’s behaviour and their needs. The academic research shows that British customers expect the next five factors of a robo advisor: Advising qualities, Process influence, Price, Advice width and Accessibility. If these factors are properly applied banks can thus provide the best customer experience. Van Thiel: “This is the first step in personalising Robo-advice, we are currently investigating service differentiation based on psychological and motivational profiles. If we can capitalise on the psychometric profiles of customers, a robo advisor may become really personal and the customer experience with it.”

Advising qualities are the most decisive factor in the customer experience
The DCX model describes the parameters that affect the customer experience for online financial advice systems. The model was tested in an online survey of 2,332 consumers in the UK and the Netherlands. In both countries, advising qualities is the most important factor. The English happen to be more results-oriented than the Dutch.
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About the authors
• Diederick Van Thiel, Behavioural Science in Digital & Robo-Advice, CEO of AdviceRobo, London/Amsterdam https://www.linkedin.com/in/diederick-van-thiel-a4710b5
• Fred Van Raaij, Professor of economic psychology at Tilburg University, The Netherlands. https://www.linkedin.com/in/fred-van-raaij-a74a785
The article is published in Economics World, David Publishing Company, Volume 5, Number 1, Jan.-Feb. 2017. The abstract and the full article can be found on http://www.davidpublisher.org/index.php/Home/Article/index?id=28481.html

About Economics World
Economics World is an international, scholarly and peer-reviewed journal (print and online) published monthly by David Publishing Company, USA. Economics World reports the latest and most creative research results in all the fields of Economics Research (micro- and macroeconomics, social and political economics, financial economics and econometrics). Economics World seeks to bridge and integrate the intellectual, methodological, and substantive diversity of economics scholarship, and to encourage a vigorous dialogue between economics scholars and practitioners.

On AdviceRobo
Founded in 2013, AdviceRobo is a European leader in robo advice solutions and artificial intelligent scoring for next generation financial institutions. By applying new data and machine learning it supports lending to Millennials & SMEs. It offers easy-to-integrate white label solutions for its customers. AdviceRobo works with a team of highly educated specialists in finance, artificial intelligence, behavioural science and software development from its offices in London and Amsterdam. The company received numerous awards for its technology and vision, and is one of the 8 Dutch companies in the European Fintech 100. AdviceRobo is proud member of Level39, Europe’s largest technology accelerator.
AdviceRobo is raising funds through the Seedrs crowdfunding platform to grow and expand its position as a market leader in the United Kingdom. The campaign is on Seedrs: https://www.seedrs.com/advicerobo.

Contact
Rosali Steenkamer
Rosali@advicerobo.com / + 00 31 6 52 636 131 / www.advicerobo.com