The Role of Robo-Advisors in Enhancing Investment in the Egyptian Capital Market -An Applied Study

Purpose – This study aims to investigate the potential role of Robo-Advisors (RAs) in stimulating investment activity in the Egyptian capital market. It explores the key drivers influencing investors' adoption of RAs, including knowledge, perceived benefits, trust, risk/security concerns, and intention to use. The study also examines the broader socio-economic impact of RAs on financial inclusion, literacy, and market activation.
Methodology – The research employed a quantitative, survey-based approach involving 693 participants from diverse demographic backgrounds across Egypt. Data were collected using a structured questionnaire and analyzed using SPSS and AMOS for path analysis. several constructs, such as awareness, perceived benefits, usability, trust, and intention to use, echo the core components of TAM, thereby offering theoretical support. However, the model is expanded to include additional constructs—such as trust, risk/security concerns, and socio-economic impacts —to reflect the complexity of economic behavior in emerging markets like Egypt, and validated using factor analysis, reliability tests, and multiple regression analyses.
Findings – The results revealed that awareness, perceived benefits, trust, intention to use, financial education, and social inclusion have statistically significant positive effects on capital market activation. Conversely, risk and security concerns had a negative impact. The study’s path analysis confirmed the mediating role of behavioral intention in linking RA characteristics with investment engagement. Notably, RAs were found to enhance financial literacy, bridge investor experience gaps, and increase participation
Originality– it is the first empirical research in Egypt to examine the behavioral and technological determinants of RA adoption and their influence on investment activity