Shariah-Compliant Robo-Advisors

Abstract

This chapter discusses the role of financial technology in Islamic finance. The chapter explores the Islamic finance principles and the key components of the robo-advisory systems, including portfolio management, client profiling, socially responsible investing, and key players in the Shariah-compliant investment horizon. The present chapter also explores the opportunities and challenges associated with Shariah-compliant robo advisory, like cost-effectiveness, accessibility, regulatory considerations, and the human-machine interaction paradigm. The conclusion of this study highlights the significance of Shariah-compliant robo-advisory services and their potential impact on investors and various stakeholders within the financial industry.