P R E S E N T E R :

A M I R A L FATA K H Y U S O F H E A D , P R O D U C T D E V E L O P M E N T

S A A D I Q S TA N D A R D C H A RT E R E D B A N K

2 1 A U G U S T 2 0 1 5

Careers in Islamic Banking (Islamic Products & Processes)

Your Future Ahead of You

What Are My Options?

Can I Make It?

How Can I Be A Part

Of It?

Introduction

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.

On Par 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 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 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 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

• Middle East • North Africa • South East Asia

Highest Growth

• Eastern Europe / Turkey • Hong Kong / China

Singapore • United Kingdom

Emerging Markets

• Western Europe • U.S. • Russia

Untapped Potential

Is There A Career In Islamic Banking?

Changing Regulatory

Environment

New Shariah Structure

Global Reach / New

Markets

Innovative Technical Product

Alternative Career

Development

Market Demand

1. Regulatory Change New development in way we do things

and seeing the big picture

2. Shariah Structure Constructive development and solution

management

3. Global / New Markets Regional opportunities, Middle East

emerging, North Africa as new frontier

4. Technical Development 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

Islamic Product Development Manager as a Starting Point

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

Origination Design &

Development Governance Implementation

Why Product Development?

Sales

Market

Branches

Ops

Legal IT

Shariah

BNM

Risk Finance

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)

• Operationally and structurally aware

of requirements 1. Trade

Financing

• Expertise in both Shariah law and

civil law provides in-depth ability 2. Legal

• Treasury and Financial Market

products with high sophistication

3. Financial Markets

• Big-deals structuring including Sukuk

and Syndication Financing

4. Corporate Financing

• Tapping into a potentially huge

deposit base, especially corporates

5. Wealth Management

• Understanding the intrinsic risks for

Islamic Banks, on top of conventional 6. Risks (Ops /

Market)

• In-depth understanding on the rules

of Islamic products and contracts 7. Sales

What We Look For in a Candidate?

Islamic Banking experience is hard to attain without the right connections.

A lot of graduates do not understand the scope required for Product Development.

It is different from Product Management or Product Sales.

Most important, is to have passion to succeed in Islamic Banking

Banking Experience

Hard Work

Problem Solving

Research

Learning

Why Not Islamic Product Sales Position as a Starting Point?

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 Legal / Shariah Officer 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 IT Specialist 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 core-banking systems

4. Enhancements to meet new regulations

Other Possibilities

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

Explore possibilities!!!

Consultancy

Academic Regulator

THERE ARE A LOT OF OPPORTUNIT IES IN A GROWING MARKET WHICH IS ALSO IN DEMAND INTERNAT IONALLY .

SMALL POOL OF TALENT AVAILABLE AT THE MOMENT AND OPEN FOR GROWTH .

EXPAND YOUR MARKETABIL ITY AND HOR IZONS AS YOU WILL BE ABLE TO COVER BOTH ISLAMIC AND CONVENT IONAL BANKING INDUSTR IES

BECOME A SPEC IAL IST IN A PART ICULAR GREEN F IELD AREA

Summary

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!

READY TO TAKE QUESTIONS FROM THE FLOOR

Thank You

Speaker Profile

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

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

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

Amir Alfatakh Yusof

Head of Product Development

Standard Chartered Saadiq

http://islamicbankers.me/