Man vs machine: How artificial intelligence in banking influences consumer belief in financial advice

Document Type

Journal Article

Publication Title

International Journal of Bank Marketing

Publisher

Emerald

School

School of Arts and Humanities

RAS ID

45422

Comments

Northey, G., Hunter, V., Mulcahy, R., Choong, K., & Mehmet, M. (2022). Man vs machine: How artificial intelligence in banking influences consumer belief in financial advice. International Journal of Bank Marketing, 40(6), 1182-1199.

https://doi.org/10.1108/IJBM-09-2021-0439

Abstract

Purpose:

This research set out to examine how financial advice provided by a human advisor (vs robo-advisor) influences investment intentions in a retail banking context.

Design/methodology/approach:

In two experiments, between-subjects experimental designs were employed to test the primary hypothesis and identify the underlying causal mechanisms that influence consumer investment decisions.

Findings:

The results from two experiments indicate consumers have more belief in financial advice provided by a human financial advisor (vs robo-advisor), when the level of involvement is high. The authors also identify customer belief in the information and the customer's perception of the bank's “customer focus” as the causal mechanisms that have downstream effects on investment intentions.

Originality/value:

This research is the first to examine how financial advice received from a human advisor (vs robo-advisor) influences investment intentions in a retail banking context. Furthermore, this research identifies high involvement as a key boundary condition moderating the effects on investment intention and identifies consumer belief in the advice, as well as the bank's perceived level of customer focus as the causal mechanisms influencing investment intentions.

DOI

10.1108/IJBM-09-2021-0439

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