A SMART SHARIAH-BASED DECISION-MAKING IN ISLAMIC FINTECH
DOI:
https://doi.org/10.33102/iiecons.v10i1.77Keywords:
Islamic FinTech, Shariah Robo-advisor, Islamic Finance, Malaysia.Abstract
This paper investigates the development of a robo advisor in Islamic fintech institutions that incorporates Shariah-based decision making. The WOS and Scopus databases were used to collect data from the literature review, which was conducted using multiple keywords. Shariah-based decision making is an important component of Islamic finance, and the creation of a shariah robo-advisor can assist investors in making investment decisions that are consistent with their values. Investment decisions and objectives should be aligned with shariah principles and the user's values. Shariah screening criteria entail identifying industries that are haram (forbidden) under Islamic law and industries that are halal (permissible). The algorithm for a shariah robo-advisor was designed to screen investments based on shariah principles and provide investment advice that aligns with the user's investment objectives while taking factors such as the company's source of income, the nature of the business, and the use of debt in the company's operations into account. By bringing the framework of shariah to the forefront of technology, and Islamic Finance studies through an interdisciplinary approach, it is not a fey subject. This analysis, on the other hand, revealed that proposing a new development of a shariah robo-advisor involves several important steps, including defining investment objectives, developing shariah screening criteria, designing the algorithm, testing the algorithm, and launching the robo-advisor from the Malaysian Islamic Fintech context was still unexplored and merited more attention, given its potential benefits.
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