Landscape of Robo-Advisory Industry Challenges and Prospects: The Case of Wahed Invest

Qasim Mohamed Abdi () and Ahmet Faruk Aysan ()
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Qasim Mohamed Abdi: Hamad Bin Khalifa University, College of Islamic Studies
Ahmet Faruk Aysan: Hamad Bin Khalifa University, College of Islamic Studies

A chapter in Eurasian Business and Economics Perspectives, 2024, pp 491-506 from Springer

Abstract: Abstract Robo-advisors have revolutionized the way industries function in the workplace. This recently introduced digital technology solution has assisted wealth management companies in reaching a wider spectrum of investors. With more than a 25% annual growth rate, robo-advisor’s worldwide assets under management currently amount to over US$1 trillion. This paper aims to present (1) what robo-advisory sector is (2) discuss the benefits and challenges of robo-advisory; (3) present the case study of a company that achieved great success in the Islamic robo-advisory field. One major finding is the lack of comprehensive literature on Islamic robo-advisory, which has hampered the growth of this industry. This suggests the need for further research and education in this field. The study also addresses some of the obstacles that the robo-advisory business is facing, such as regulatory concerns and potential ethical issues associated with the use of algorithms in decision-making. Nevertheless, the advantages of robo-advisors such as cost-effectiveness, accessibility, and personalised services, exceed these drawbacks. The Wahed Invest case study exemplifies how embracing innovation may lead to success in the Islamic robo-advisory market. Wahed Invest has become one of the leading digital investing platforms in the globe by providing a user-friendly platform and Islamic investment alternatives. Overall, this study indicates that the robo-advisory sector has significant growth potential, and that the Islamic robo-advisory can benefit from further research and innovation.

Keywords: Digital technology; Wealth management; Robo-advisory; Islamic robo-advisory; Wahed invest; Digital investment (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/978-3-031-51212-4_28

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