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The use of robo-advisors in Italy: insights from a new survey

Author

Listed:
  • Massimiliano Stacchini

    (Bank of Italy)

  • Pietro Vassallo

    (Bank of Italy)

Abstract

Robo-advisors, the provision of (affordable) financial advice through algorithms on digital platforms, offer great potential to increase participation in financial markets by private individuals. However, like any innovation in finance, opportunities also come with challenges. Based on data from a recent survey of 5,000 individuals, we conduct an in-depth analysis of the characteristics of individuals who use robo-advisors in a country such as Italy, where participation in financial markets is traditionally low, and assess the influence of this technology on the general public's propensity to make financial investments. Our results show that (i) the adoption of robo-advisors is higher among individuals with greater digital skills but limited financial knowledge; (ii) the adoption of robo-advisors positively influences the propensity to purchase financial assets, such as stocks, bonds, and investment funds.

Suggested Citation

  • Massimiliano Stacchini & Pietro Vassallo, 2025. "The use of robo-advisors in Italy: insights from a new survey," Questioni di Economia e Finanza (Occasional Papers) 979, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_979_25
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2025-0979/QEF_979_25.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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