Wahed Invest on how to drive ethical investing in the fintech sector

New York-based fintech company, Wahed Invest, is set to make a significant entry into the Nigerian market next month. The Chief Investment Officer, Samim Abedi, recently sat down for an exclusive interview with CNBC Africa to discuss the company's mission of ethical investing and its expansion plans. Abedi highlighted how Wahed Invest has been able to create a platform for ethical investments across the world by providing low-cost, diversified investment options to historically underserved communities. The company's innovative approach allows retail clients to tailor their investment portfolios according to their risk profiles, starting with minimal investments as low as $100. This framework is aimed at bridging the financial inequality gap and providing access to financial markets to a broader demographic. Wahed Invest currently operates in the U.S., the UK, and Malaysia, with plans to expand into Africa, Central Asia, and the GCC region. The fintech sector, which has seen rapid growth and adoption, is primarily driven by the younger demographic's comfort with digital platforms and the increasing demand for transparent investment options. Abedi emphasized the importance of providing solid financial returns while investing ethically, without compromising on performance. As Wahed Invest gears up to enter the Nigerian market, Abedi sees tremendous opportunities in the country, considering its status as the largest economy in Africa with a booming banking sector. He believes that partnering with local entities and offering innovative digital products will resonate well with the Nigerian population. The company plans to tailor its investment products to suit the local market dynamics, potentially including Sukuk bonds and other ethical investment options. However, Abedi acknowledged the challenges in product development, especially in the realm of ESG criteria and varying interpretations of ethical investing. He stressed the need for a robust framework that aligns with client preferences while remaining competitive in the market. Wahed Invest has witnessed significant growth in assets under management (AUM), with its USETF growing from $13 million at seed stage to over $140 million currently, reflecting the growing demand for ethical investment opportunities. Abedi expressed optimism about the increasing supply of ethical investment funds and the company's ability to raise capital for its expansion plans. He highlighted the importance of maintaining cost efficiency and delivering competitive returns to attract conscious investors in the ethical investing space. Wahed Invest's success in the fintech sector stems from its commitment to bridging financial gaps, providing access to diverse investment options, and ensuring ethical standards in its products and services. With its imminent entry into the Nigerian market, the company is poised to revolutionize ethical investing in the region and expand its footprint across diverse markets worldwide.