THE IMPACT OF USING ROBO-ADVISORS ON FINANCIAL INSTITUTIONS PERFORMANCE

Abstract

Business advancements are being made with emerging technology. The innovation of Robo-Advisors increases the ease of a company's financial decision-making process. Moreover, the wealth management industry in Saudi Arabia is undergoing a rapid transformation, with the traditional methods of offering financial advice being disrupted by the latest and innovative types of technology. Thus, this work has analyzed the impact of using Robo-Advisors on financial institution performance in Saudi Arabia. This work was carried out based on quantitative method. Data from secondary sources were analyzed. The key findings have shown that Kingdom of Saudi Arabia has been engaged to FinTech Robo-Advisors with assets under management of US$346m in 2019. Furthermore, the number of users is expected increase up to 152.8 thousand by 2023. The automation technology supplied by Robo-Advisors helps reduce costs and improves control and compliance of the company. In addition to providing the best service to existing customers.