Optimizing user engagement in robo-advisory services: an analysis of service design strategies

Author:
Marian Bäckman
Supervisor:
Krista Korpikoski
University:
University of Lapland

The extensive development of Robo-advisors, AI-driven financial management, and personalized financial advice delivered to users via an application has vastly changed how individuals interact with the financial sector. As Robo-advisors gain popularity in Finland and across Europe, the question arises: "What kinds of service designs can help users better engage with Robo-advisors?" This research examines the influence of service design to improve their engagement with Robo-advisors, as well as get a high adoption of the Robo-advisors.This study deals with the works or articles on Robo-advisors by summarizing their establishment and the level of their dominance. It is identifying the core service design strategies and methods to foster the service adoption and facilitate a holistic user experience Principles like user-friendly buttons, customizable features, and clarity of directions put user experience at the optimum point as they show the directions on how to effectively use the Robo-advisory apps and platforms. The study, moreover, seeks to understand the viewpoints of certain potential users as regards Robo-advisory services, which would clarify what factors those individuals may incline to or away from active participation.

The objective of this study is not only to broaden the knowledge around service design but also to add new information to the potential for Robo-advisory services. The study will examine consumer experience and how it relates to Robo-advisors’ use and challenges implied, to provide possible lessons learned and thus allow for the enhancement of service mechanisms. The purpose is to drive the industry to step up its development through innovative and user-friendly service designing and, in the end, the distinguishing point for potential customers to choose using the Robo-advisory services becomes higher.

Key words:  Robo-advisors, financial management, service design, design thinking, user engagement