Careers in Islamic Banking (Islamic Products & Processes) PRESENTER: A M I R A L FATA K H Y U S O F HEAD, PRODUCT DEVELOPMENT S A A D I Q S TA N D A R D C H A R T E R E D B A N K

21 AUGUST 2015

Your Future Ahead of You

What Are My Options?

Can I Make It?

How Can I Be A Part Of It?

Introduction On Par

Islamic Banking to the Forefront

For some time now, Islamic Banking has been grabbing the limelight as there is greater acceptance to the Shariah requirements to complete an Islamic transaction. There is also greater awareness on the benefits of Islamic Banking.

Ethical Banking

Islamic Banking is also mooted as “Ethical Banking” by some customers, where Shariah Advisors put off certain features deemed to be unethical or unjust to customers.

Recent developments, either in guidelines or Shariah views on business, has pushed for greater innovation which allows the products to be on par with the conventional products. Global products are also being introduced to create differentiation.

Segment, Not Religion

There has been better understanding on what is Islamic Banking and what it represents. For non-muslims, it is an alternative segment offering a group of products that is somewhat similar to conventional but is heavily regulated for compliance

The Growth in Islamic Banking in Malaysia

Source : World Islamic Banking Competitiveness Report (EY 2014)

Becoming an Islamic Financial Hub

There is an on-going ambition driven by BNM to position Malaysia as the foremost leader in Islamic Financial Services, evidenced by the issuance of various regulations, strong business-friendly push and close supervision to ensure continued momentum

The global profit pool of Islamic banks is set to triple by 2019.

Islamic banking assets in six core markets Qatar, Indonesia, Saudi Arabia, Malaysia, UAE, Turkey on course to touch US$1.8t by 2019. Islamic banks in Saudi Arabia, Kuwait and Bahrain represent more than 48.9%, 44.6% and 27.7% market share respectively. Positive progress has been has made in Indonesia, Turkey and Pakistan, with 43.5%, 18.7% and 22.0% CAGR respectively from 2009-2013.

The Global Arena International Islamic banking assets set to exceed US$778b in 2014. Global Islamic banking assets witnessed a compounded annual growth rate (CAGR) of around 17% from 2009 to 2013. Source : World Islamic Banking Competitiveness Report (EY 2014)

The Opportunities  Overseas work opportunities

for Islamic Banking specialists with 4-5 years background (especially Middle-East)  Actively hiring capable individuals  Consultancy set-up work for various companies  Growth in the local Islamic Banking & Takaful companies that complies with regulations

Highest Growth

• Middle East • North Africa • South East Asia

Emerging Markets

• Eastern Europe / Turkey • Hong Kong / China Singapore • United Kingdom

Untapped Potential

• Western Europe • U.S. • Russia

Is There A Career In Islamic Banking? 1. Regulatory Change 

Market Demand

Changing Regulatory Environment

New development in way we do things and seeing the big picture

2. Shariah Structure 

Constructive development and solution management

3. Global / New Markets Alternative Career Development

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New Shariah Structure

4. Technical Development 

Innovative Technical Product

Global Reach / New Markets

Regional opportunities, Middle East emerging, North Africa as new frontier

Adapting to new changes and building new innovations meeting Shariah requirements

5. Career Development 

Shift from Conventional Banking to Islamic Banking

6. Market Demand 

Customers demanding Islamic Banking products and services

The perception is that Product Development role is a difficult function, with limited growth prospects. However, this function is the fulcrum of a Bank where: 1.

The sales numbers of a Bank depends on how competitive the product offering is.

2.

The function increases the technical capabilities of the team

3.

The compliance to regulations is placed at the utmost importance

4.

The team is required to understand the Bank’s strategy

Islamic Product Development Manager as a Starting Point

Why Product Development? Sales

Legal

Origination

Market

IT

Design & Development

Finance

Branches

BNM

Governance

Shariah

Implementation

Risk

Ops

 A Product Development role allows you to have invaluable

access to almost all areas in a Bank.  Privy to new regulations and industry direction

Islamic Product Development Team

Breaking the Concrete Wall  It is admittedly hard to break into a position in Islamic

Banking Development as experience remains an important criteria  There is very little exits in the industry and existing talents circulate within the industry  However, there are defined routes into such a position

Become a Qualified Student then Intern in Islamic Banking Department

Get Involved // Recognised in Industry Events, Seminars and build a strong network

Gain Banking Experience (Sales / Operations / Credit) including Conventional Bank

Products Specialisations Islamic Banking still faced a huge shortage of talent pool in certain areas This is mainly due to many talents are conventionally trained and find it difficult to understand the requirements of Shariah The following talents are in my view where the critical Shortages are (by Rank)

1. Trade Financing 2. Legal

• Operationally and structurally aware of requirements • Expertise in both Shariah law and civil law provides in-depth ability

3. Financial Markets

• Treasury and Financial Market

4. Corporate Financing

• Big-deals structuring including Sukuk

5. Wealth Management

• Tapping into a potentially huge

6. Risks (Ops / Market)

• Understanding the intrinsic risks for

7. Sales

products with high sophistication

and Syndication Financing

deposit base, especially corporates

Islamic Banks, on top of conventional • In-depth understanding on the rules of Islamic products and contracts

What We Look For in a Candidate?

Hard Work

Islamic Banking experience is hard to attain without the right connections. A lot of graduates do not understand the scope required for Product Development.

Learning

Banking Experience

It is different from Product Management or Product Sales. Most important, is to have passion to succeed in Islamic Banking

Research

Problem Solving

A lot of students feels becoming a “salesman” is a dead end job

However, “Sales” provides you with a lot of vital skills 1.

Teaches how speak and communicate properly

2.

Force you to understand the product details

3.

Learn the behaviour of customers and their requirements

4.

Promotes analytical skills

5.

Builds strong character to strive and not give up

6.

Gives valuable practical / operational experiences

Why Not Islamic Product Sales Position as a Starting Point?

There has been many “Islamic Law” graduates that aspire to become Shariah lawyers However, there is an acute shortage in Islamic Legal / Shariah Officers that is needed for 1.

Structuring documents to suit a business requirement

2.

Able to understand the linkages of the different discipline in the legal documents

3.

Affecting change in the documents

4.

Understanding complex contractual Shariah requirements

Why Not Islamic Legal / Shariah Officer Position as a Starting Point?

IT Savvy students take note.

There are many growing opportunities for IT specialist in Islamic Banking 1.

Design the IT platforms to be Shariah compliant

2.

“Islamising” conventional system

3.

Building corebanking systems

4.

Enhancements to meet new regulations

Why Not Islamic IT Specialist Position as a Starting Point?

Other Possibilities In a growing industry, there will be continuous development of various sectors.

Consultancy

Explore possibilities!!!

Regulator

Academic

Summary 

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THERE ARE A LOT OF OPPORTUNITIES IN A GROWING MARKET WHICH IS ALSO IN DEMAND INTERNATIONALLY. SMALL POOL OF TALENT AVAILABLE AT THE MOMENT AND OPEN FOR GROWTH. EXPAND YOUR MARKETABILITY AND HORIZONS AS YOU WILL BE ABLE TO COVER BOTH ISLAMIC AND CONVENTIONAL BANKING INDUSTRIES

BECOME A SPECIALIST IN A PARTICULAR GREEN FIELD AREA

DON’T LIMIT YOUR SCOPE  Plan your Career  Try Your Best in    

Interviews Don’t Be Afraid to Do More Believe in Yourselves Take Any Opportunity Be Passionate!

Thank You READY TO TAKE QUESTIONS FROM THE FLOOR

Speaker Profile

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Started Career in OCBC Bank, Malaysia as Relationship Manager (1997) and Branch Operations (2000)

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Joined Islamic Banking Department in OCBC Bank in 2003. Heading the Consumer Product Development team.

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Amir Alfatakh Yusof Head of Product Development Standard Chartered Saadiq

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http://islamicbankers.me/

Briefly joined Kuwait Finance House, Malaysia in 2006 into Product Marketing. Interesting experience but didn’t really like it. Made some really good friends. Joined ABN-AMRO Malaysia in 2007 to start the Islamic Banking windows for Malaysia. Exciting period but the mission was aborted as RBS took over the following year. Went on to join Al Khaliji Commercial Bank in Doha, Qatar in late 2008 to start Islamic Banking windows. Launched Islamic Branch in 2009 and was happy living as an expat. Had to return to Malaysia due to some regulatory changes by QCB on Islamic Banking Windows. Sorry to leave. Briefly joined AmIslamic Bank Malaysia in 2011 as Head of Product Development with a team strength of 18. Busy managing the day-to-day people challenges. Since 2012, Heads the Product Development team in Standard Chartered Saadiq Malaysia, overseeing the development of Retail, SME, Wholesale, Financial Market products for both Assets and Liabilities. Currently happy managing 8 “kids” in the team