This study investigates the effect of the robo-advisors on financial inclusion, and analyzes the mediation and moderation of financial and digital literacy in the context of India. The Indian fintech space is experiencing a paradoxical situation where, while there is an increase in fintech platforms such as Groww, Kuvera and ET Money, low cost robo-advising services for inclusion are enjoyed mainly by the financially literate urban population. The primary data has been collected from people of Tier-1, Tier-2 and Tier-3 cities of Rajasthan by adopting mixed method and using structured questionnaire. The six objective knowledge items and the six behavioural items were obtained to measure Financial Literacy. The data was analyzed reliability, correlation, regression and mediation-moderation. The results show that there is a positive correlation between financial literacy and the use of robo-advisors. Trust in AI and Perceived Usefulness partially mediate this relationship while Digital Literacy significantly moderates it. Moreover, the Financial Inclusion Scores of robo-advisors users are significantly higher, making robo-advisors a driver towards inclusion by making access more readily available, albeit biased and thus requiring vernacular integrated phygital models.
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