A pilot study on the intention to use robo-advisors among Millennials and Gen Z in Malaysia

Robo-advisor, a recent advancement in the financial-technology sector, is still in its early stages in the Malaysian market, focusing on millennials and Gen Z. This research discusses factors influencing the intention to use robo-advisors through a pilot test that has been conducted to assess the usability and reliability of survey questionnaire. The quantitative study has used an online survey method, applying purposive sampling for data collection. The questionnaires have been distributed via Google Form to potential investors aged 18 to45in Malaysia through WhatsApp, Telegram, and Facebook. A pilot study of 30 completed questionnaires has been analysed by examining the factor loadings, composite reliability (CR), and average variance extracted (AVE). Findings show that each loading ranges from 0.627 to 0.967, the CR index ranges from0.903 to 0.976, and the AVE ranges between 0.613 and 0.873, indicating the constructs’ good reliability. Therefore, the measurement items are acceptable for future research on a larger scale. It is obvious that the findings of this preliminary study can be utilised to enhance the content of the questionnaire before commencing the primary investigation. This study contributes to the literature and provides an initial overview of the factors influencing the intention to use robo-advisors in Malaysia, highlighting its potential impact on the financial technology sector.