Over the last few years, the demand for a sustainable pipeline of talent in Islamic finance has accelerated with the adoption of digital technology in financial services. It is no longer about having only the knowledge of Shariah and Islamic products but also its application to the current wave of technological innovations happening in the financial services industry.
There is an urgent need to fill in the digital skills gap for readily available talent around the world to harness the growth potential of new technologies. With greater push by authorities around the world toward climate change remediation, sustainability considerations have also taken center stage in the agenda of global financial institutions. For the Islamic finance industry, not only are talents required in these emerging areas but also talents who are conversant with the Shariah considerations therein.
To prepare the workforce of the future, upskilling of the human capital is key. For most institutions, bridging the skills gap is a challenge that cannot be solved in isolation. A dynamic and sustainable talent ecosystem is crucial to continuously enhance talent capabilities and support the transition of the financial sector workforce. This is an area where there is a continuous need for the industry and its stakeholders to come together to take collective action.
Review of 2022
Looking back over the past year, the world has generally accepted the new way of living amid the COVID-19 coronavirus. With the challenges faced during the pandemic and the widespread shift for people to work from home, the workforce was compelled to quickly adapt to the use of technologies to ensure business was carried as usual. With it came the demands of a reset of new skills and priorities. Institutions or organizations that fail to adapt will be affected and lose their ability to attract, retain talent and stay relevant in the industry which will indirectly affect their capacity to grow holistically and retain a competitive edge. This is true not only in terms of business operations but also in terms of human capital development.
In the context of Islamic finance talent development, the changing landscape of the industry in terms of technological innovation and sustainability focus had necessitated scholars and talents to be more conversant in solving complex and contemporary problems including geopolitical considerations faced by the financial world. This reinforces the need for talents who are able to learn, apply and deploy emerging business models as well as new technologies.
In other words, the Islamic finance industry workforce currently should no longer focus on having a comprehensive understanding of Shariah, economics, legal or accounting knowledge only, but also the agility to be more digitally-savvy, with the ability to innovate and integrate technology and data in business concepts. For a more holistic workforce, professional education that emphasizes on continuous personal development with contemporary skills while at the same time promoting professional and ethical Islamic financial practice must be encouraged.
Given the convergence between Islamic finance and sustainability and the similarity in the moral precepts of Islam and the goals of Islamic finance with the UN SDGs, Islamic finance education needs to refocus toward the philosophy behind Islamic finance which should be the foundation on which Islamic financial products are developed.
For instance, when Islamic products achieve the goal of social benefits in Islamic finance, it ties to the SDG objective of poverty alleviation and reduced inequality.
Preview of 2023
What’s next for the Islamic finance talent ecosystem?
With widespread use of technology, the mode of learning has mostly changed to online and can be taken from anywhere in the world. Courses are now generally ‘bite-sized’ and ‘on demand’, and are no longer limited by subject, time, geographical location and cost.
Nevertheless, globally there is a lack of framework in the financial services sector, especially in Islamic finance that guides education and training, career development and skills upgrading toward a common skills language for individuals, employers and training providers.
As a result, benchmarking the quality of training and education as well as the competencies of workforce may be challenging. This is where employers, industry associations, education providers, professional bodies and the regulators can work together to co-create a skills framework for the industry that will provide the key information on the career pathway, and the existing and emerging skills required for the industry.
With a full suite of Islamic finance training and education being offered currently be it at the tertiary or professional level, the presence of a globally benchmarked standard in Islamic finance education can ensure talent pipelines are being built according to the needs of the industry.
In this respect, the relevant authorities must provide an enabling policy environment to support these efforts and developments. In addition, better coordination of the Islamic finance talent institutions can avoid duplication of roles and provide an ecosystem that is more focused on efficiency and maximum impact.
Conclusion
The growth of Islamic finance talent for the future therefore greatly depends on the opportunity, ability and willingness to gain knowledge and master technology and innovation on the part of the workforce. This needs to be supported by access to a comprehensive upskilling and learning infrastructure and globally benchmarked education.
Talents of the future need to be more versatile and have a global and macro perspective in order to bring value and innovation to the industry and its stakeholders. It is time for the role of professional bodies to be brought to the forefront as a platform for talents to advocate Islamic finance’s revival to reap the new opportunities of the future.
Dr Azura Othman is CEO of the Chartered Institute of Islamic Finance Professionals. She can be contacted at [email protected].