Safeguarding Personal Data in Islamic Fintech: A Comparative Review of Shariah-Compliant Investment Platforms

Surianom  Miskam; Farah  Mohd Shahwahid; Nawal  Sholehuddin

doi:10.53840/myjict10-2-234

Authors

Surianom Miskam Faculty of Syariah and Law, Universiti Islam Selangor, Malaysia
Farah Mohd Shahwahid Faculty of Syariah and Law, Universiti Islam Selangor, Malaysia
Nawal Sholehuddin Faculty of Syariah and Law, Universiti Islam Selangor, Malaysia

DOI:

https://doi.org/10.53840/myjict10-2-234

Keywords:

Artificial Intelligence, Shariah-compliant investments, personal data protection, Islamic FinTech, ethics

Abstract

With the fast-paced development of digital financial services, Islamic financial technology (FinTech) platforms are gaining recognition for offering Shariah compliant investment options with personalized investment strategies and risk preferences for diverse backgrounds of investors. The integration of big data and artificial intelligence (AI) into Shariah-compliant investment platforms is reshaping portfolio optimization, risk management, and compliance monitoring thereby presenting both opportunities and challenges to the Islamic asset management industry. However, reliance on massive-scale personal and financial datasets in these AI-driven investment platforms introduces significant challenges related to data privacy, security, and governance. The AI-driven investment platforms collect and process personal data to conduct enhanced due diligence in order to assess eligibility and suitability of funds according to their risk preference. Legal and ethical concerns arise where existing legal provisions do not fully address the interests of stakeholders. This paper examines the legal and ethical perspectives of personal data protection within Shariah-compliant investment platforms by reviewing relevant legislations, privacy notice of Islamic funds and, user interface and app walkthroughs experience. The study explores how these platforms balance technological innovation with adherence to Shariah governance principles and data protection requirements, such as the Personal Data Protection Act 2010 and the Islamic Financial Services Act 2013 in safeguarding investor information. The findings show that AI enhances portfolio screening and investment decision while personal data protection laws and Shariah governance framework play significant roles to ensure compliance and maintain investor confidence. The study contributes to the emerging discourse on Islamic FinTech, offering strategic insights for regulators, asset management companies and digital platform developers to strengthen personal data protection while sustaining innovation in AI-driven Shariah-compliant investment.

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