Opportunities and Threats of Shariah-Compliant Robo Advisory. The Case of Wahed Invest

Master's Thesis , 2019 , 25 Pages

Business economics - Investment and Finance

This paper seeks to highlight the opportunities of Shariah-compliant Robo-Advisary (R.A.) in the field of FinTech and how it could potentially revolutionize the Islamic Finance industry through its positive integration as opposed to its feared future domination, using Wahed Invest (New York) as a case.

Robo-Advisory is often seen as having the ability to overtake traditional human financial advisors. However, what initially may be understood as a threat is in fact a great opportunity within the Islamic FinTech industry. Shariah-compliant R.A. has the potential to offer immense opportunity to many markets including traditional financial advisories, high-net worth (HNW) clients, and Islamic banks globally as well as those individuals/banks keen to carry out ethical investment alternatives. FinTech, within the boundaries of Shariah law, can be especially applicable for young Muslim millennials residing in the West. Todorof 201(2018)) notices that this particular market has difficulties gaining access to Shariah-compliant financial services. Therefore, one of the leading FinTech areas, and the most appropriate to their needs, is that of Robot Advice.

The aim of this research is then to examine the extent of opportunities available as opposed to the seeming threats of current Shariah-compliant R.A. services using the example of Wahed Invest (New York). This current research will therefore bring forth a positive contribution towards many sectors within the Islamic Finance industry.

Contents

1. Abstract

2. Introduction

3. Problem Statement

4. Literature Review

5. Research Methodology

6. Islam and Financial Technology (FinTech)
6.1 What is Islamic FinTech?
6.2 What is Robo Advisory (R.A)?
6.2.1 Digital Advisory Models and their Clients Digital Advisory Models
6.2.2 Benefits of R.A

7. Analysis and Findings
7.1 Overview of Wahed Invest (New York): A Case Study
7.2 Shariah-Compliant R.A
7.3 The Market for R.A
7.4 Market for Shariah-compliant R.A
7.5 Future opportunities of R.A
7.6 Is R.A a threat for Traditional Advisors?
7.7 Opportunity (not threat) for Traditional Advisors
7.8 Opportunity for R.A in the HNW (High Net Worth) market
7.9 Opportunity for U.S and beyond
7.10 Opportunity for Banks to implement R.A

8. Conclusion & Recommendations

• Course: Masters of Islamic Finance Practice (MIFP)
• Author: Aneesa Rahman (Author)
• Publication Year: 2019
• Pages: 25
• Catalog Number: V540407
• ISBN (eBook): 9783346171146
• ISBN (Book): 9783346171153
• Language: English
• Tags: Islamic Finance, Islamic Fintech, Fintech, Islamic Wealth, Islamic wealth management, Islamic wealth planning, robotics, robo-advisory, Islamic robo advisory, Islamic Robo-Advisory, Shariah Robo-Advisory, Shariah robo advisory, Shariah-compliant robo advisory, shariah compliant, shariah compliant robo advisory, Halal advisory, Halaal advisory, halaal wealth plannning, halal wealth planning, halaal wealth management, halal wealth management, Robo Advisory, financial technology, Islamic financial technology, Shariah compliant fintech, shariah compliant financial technology, opportunities threats fintech, opportunities threats Islamic fintech, Halal fintech, halaal fintech, Shariah fintech, robot advice, robo advice, Halal robo advice, Halaal robo advice, Shariah robo advice, Shariah robo-advice, Halal robo-advice, Halaal robo-advice, Shrariah compliant robo-advice, Shariah-compliant, shariah-compliant robo-advice, shariah complaint robo advice, shariah, advisory, robo, robotic, halal wealth, halaal wealth, shariah wealth, shari'ah, wealth planning, halaal wealth planning, islamic finance practice, inceif, global university of islamic finance, wahed invest, wahed invest (new york)