Maybank Asset Management (MAM) has launched its Shariah compliant Hyper-Customised Discretionary Portfolio Mandate (DPM) in partnership with Arabesque AI for high-net-worth investors in Malaysia. This mandate leverages the power of artificial intelligence (AI) and advanced data analytics to construct portfolios that align with the principles of Shariah.
This move between the Malaysian asset manager and the UK investment advisory and technology company reflects a commitment to meeting the evolving needs of clients and signifies a proactive approach to staying ahead of industry trends as many Islamic banks are also leveraging AI technology to enhance their services and meet the growing demands of their customers.
Islamic financial institutions in Malaysia are increasingly integrating AI into their product offerings and operations. For example, Bank Islam Malaysia partnered with Kestrl, a UK Islamic fintech, to develop a machine learning-driven tool to bolster its Be U digital bank app. CIMB Islamic also hopped onto the train of fintech by partnering with DataRobot to create a platform for machine learning credit models, improving its credit risk modeling and retail underwriting for unsecured loans.
“It’s no longer sufficient for investment returns; we must scrutinize how they are generated,” Omar Selim, CEO of Arabesque Group, commented.
This partnership is not the UK company’s first in Malaysia. Arabesque has a long-standing relationship with Bank Islam’s asset management arm, BIMB Investment Management, aiding the latter to launch tech-driven Shariah ESG funds. Last year, the UK firm secured approval from the Securities Commission Malaysia to acquire a stake in BIMB Investment Management.
As Malaysia’s Islamic finance sector continues to embrace digitalization, the use of AI will likely continue to evolve with more Islamic banks in Malaysia likely to further leverage this technology to stay ahead of the competition and meet the evolving needs of their customers.