Abstract
The integration of algorithmic wealth management within the Islamic capital market represents a transformative development in retail investing, yet empirical insights into how young Muslim retail investors respond to digital wealth tools remain scarce. This study investigates the impact of Sharia-compliant robo-advisory platforms on the investment intentions and risk-taking behavior of Malaysian millennial investors. Employing a randomized between-subjects experimental design with 384 retail participants, we examined behavioral responses across three interface conditions: a conventional algorithmic robo-advisor, a baseline Sharia-screened automated platform, and an enriched Sharia platform displaying institutional Sharia advisory board endorsement and automated zakat computation features. Drawing on an extended Technology Acceptance Model (TAM) incorporating perceived Sharia compliance, financial literacy, and institutional trust, structural equation modeling reveals that automated purification, transparent Sharia governance, and algorithmic transparency significantly diminish algorithmic aversion and amplify capital allocation. Notably, the experimental provision of Sharia governance cues elevated portfolio allocation by 28.4% relative to conventional interfaces. These findings offer actionable implications for Islamic fintech designers, regulatory authorities such as the Securities Commission Malaysia, and financial institutions seeking to democratize ethical retail wealth management in Southeast Asia.
