Developing World Class Human Capital in Islamic Finance

By

Dr Amat Taap Manshor

CE0, Finance Accreditation Agency (FAA)

Agenda

Global Human Capital Requirements

Competency Gaps in Islamic Finance

Talent Development Challenges

The Malaysian Experience

Industrys Suggestions for Improvement

FAA and Industry Collaboration

Recommendations

Global Human Capital Needs inIslamic Finance

Global Talent Demand

Malaysia

40,000more by

2020

17,000more in

3 years

8,000more for

2016

Globally: 56,000

Indonesia Dubai

Shortage by Sector

Banking

Takaful

Legal

Capital Market

50%

88%

63%

63%

Source: COMCEC 2013

High Demand Training Courses

Banking77%

Takaful59%

Shariah Compliance56%

Wealth Planning53%

Source: FAA Talent Development Survey 2014

Shortage vs Demand

Banking

Takaful

+27%

Shariah Compliance/ Legal

Wealth Planning/ Capital Market

-7%

-4%

-35%

Shortage by Positions in Malaysia

C-Suite, Board of Directors

Senior Management

Middle Management

Technical

Executives

Non- Executives

68%

70%

65%

80%

32%

11%

64%

75%

70%

82%

30%

12%

Islamic Banking Takaful

Source: AIF Talent Gap in the Financial Services Industry 2015

Competency Gaps in Islamic Finance Practitioners

Source: FAA Talent Development Survey 2014

Is there really

a dearth of

Talent?

Perspective on Industry

Do you think the

number of people

working in the Islamic

Finance industry is

sufficient to meet the

needs of the industry?

Source: FAA Talent Development Survey 2014

Perspective on Own Organisation

Do you think the

number of people

working in your

organisation is

sufficient to meet the

your needs?

Source: FAA Talent Development Survey 2014

Talent Development Challenges

Demand and Supply

Mismatch

Unique Islamic Finance

Skill Sets

Detached Curriculum

The Malaysian Experience

IBFIM is an industry-linked business entity dedicated to producing well- trained, high competent personnel and executives with the required talent in Islamic finance.

ICLIF provides leadership development programmes for senior executives from financial institutions and business corporations.

INCEIF is the worlds first fully- dedicated Islamic Finance university offering Masters and PhD degrees and Chartered Islamic Finance (CIFP) qualification.

ISRA is an international research house for applied Shariah research in Islamic Finance and a repository of knowledge for Shariah views or Fatwas

SIDC is a training and development provider on capital markets, including the Islamic Capital Market

FSTEP, managed by Institut Bank- Bank Malaysia (IBBM), offers an intensive 1- year training programme for entry level executives covering the four banking/ insurance streams: Conventional banking, Investment banking, Islamic Banking and Insurance/ Takaful

IBFIM

ICLIF

INCEIF

ISRA

SIDC

FSTEP

Tertiary Education Offerings for Islamic Finance in Malaysia

Diploma

22

Bachelors

Degree

12

Masters

5

PhD

3

Total:

42

Suggestions by the Industry

Direct

involvement of

industry in

designing

modules &

curriculum

Be purpose-driven,

performance-

oriented, &

principles-led

More

engagement

between

stakeholders

IF is a

specialised

field. Industry

need to specify

their talent

requirements

Set up an

international

institution to

accredit IF

curriculum across

the globe.

COMCEC 2013 HBR.orgDr AbdelAziz Mustafa, IDC

Baiza Bain, Maybank COMCEC 2013

What Needs to be Done?

Delivering measurable

performance

Established symbiotic

relationships

Teaching fellows from

the industry

Possible Solutions

Internship/Industry Attachments

Industry Advisory Board

Co-Teaching

Industry-based Academic Projects

Consulting Work

Professional Associations

1

2

3

4

5

6

7 Accreditation

FAA and Industry Collaboration

Accreditation

FAA Learning StandardsIslamic Finance Professional

Programmes Structure

Recommendations

Training Providers, Academia and the industry can collaborate to create a

curriculum that is approved and recognised on a wider scale.

Organisations such as FAA can provide accreditation for Islamic finance

courses which incorporates both technical competencies and soft skills such as

management and leadership.

Accreditation will help and focus the need to bring stakeholders together.

Standard setting bodies such as FAA can play a key role in developing a

standardised and uniform curriculum for the professional sector which will be

widely accepted. This will also help the industry achieve the quality talent

that they are looking for.

Thank YouVisit us at www.faa.org.my

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Thank You

Visit us at www.faa.org.my

www.facebook.com/FAABerhad

FAABerhad