Smarter Investors: The Impact Of Robo-advisors On Financial Literacy And Decision-making

This paper explores the extent to which robo-advisors influence financial literacy and systematic investment behavior among retail investors in the United Arab Emirates. While robo-advisory platforms are widely adopted for their convenience and cost-efficiency, their actual contribution to investor knowledge and long-term financial discipline remains contested. Using a descriptive-correlational research design supported by thematic qualitative analysis, data were collected through a structured survey of 150 investors. The findings indicate that financial literacy significantly predicts investment behavior, while robo-advisor usage alone does not yield statistically significant behavioral improvement. Correlation analysis confirms that income and financial literacy are more strongly associated with disciplined investing than technological adoption. Thematic insights reveal that trust, usability, and the perceived lack of human interaction shape investor attitudes toward automated advice. These results suggest that financial technology, though valuable in access and automation, must be complemented by behavioral reinforcement mechanisms such as educational modules, timely nudges, and user feedback to foster meaningful financial behavior change. The study contributes to the literature on financial technology by emphasizing the need for integrative robo-advisory designs that align cognitive engagement with behavioral outcomes.