The Islamic finance conference circuit has finally woken up to realise that organizational growth comes about through a focus on Human Capital and Talent Development. Better late than never. Yet one wonders if it is a bit too late in coming.
The Islamic finance education sector is highly fragmented. On one hand there is a plethora of established universities globally offering academic qualifications. On the other, there are a multitude of commercial education service providers delivering various professional qualifications. Global recognition of these qualifications is an output of how best an institution can show compliance of individual standards as required by countries. Increasing programme fees, cost of living, increasing preference of digital or e-learning and uncertain economic conditions are impacting quite heavily on the usual business model employed by the education service providers.
On the other side the industry has been acutely focused in the technical aspects of growing itself and trying to position itself as an alternative financial framework. Regulatory and product developments have primarily been the key areas of focus over the past decade. Other key areas of research, soft skills and talent development have not been on their radar.
The impact of this, on the education sector, is a massive one.
Industry prefers to bring on board talent that has work experience and globally recognized qualifications. This has resulted in academic programmes and its co-related research being classified as theoretical and not providing the necessary skill-sets that the industry requires.
Couple this with the behavioural changes that has occurred, due to technological adoption and usage and economic conditions, and one finds the overall Islamic finance industry a bit out of touch with reality. Costs have brought about a demand for shorter and shorter programmes. The tech world has seen a huge rise in this area. One example is the nanodegree. Support from the Islamic finance industry in recruiting required talent on campus, by virtue of having a clear talent need and development plan that’s based on business strategy, has been sporadic and is based on regional relationships between academic institutions and industry organizations. Development of academic programmes based on data and cases from the industry are far and few. These are available as short-courses or executive programmes few of which have clear CPD (Continuous Professional Development) points and benefits linked to it.
Simultaneously the education sector is seeing significant changes with regards to programme content, delivery and accessibility. Globally ranked academic institutions have taken their general product offering to where the market is and have created business models that provide operational viability. The Islamic finance education sector, on the other hand like its industry counterpart, seems to look at hegemony as key. Staying rooted to theoretical education content across regions.
In a world where collaborative economy and disruption are now constants, such hegemony type of approach is akin to shooting down a dinosaur with a pea gun!
Where is the Islamic finance education today?
Looking at all the talk, in public domain and the chatter in the conference circuit, one would have to surmise that the sector is, indeed, in a stall. Whilst a lot of great advice is being offered, everyone everywhere, across is the industry is waiting for some else to pick up the leadership and the associated risks. The impact is dropping rates of academic and private programme applications and lack of jobs for qualified graduates along with dearth of innovation and creativity in the industry.
Going forward the Islamic finance industry has to decide if it wants to play in the global stage or otherwise. If it’s the latter, it is a must that the industry invest in the education sector in order to develop knowledge, skills, innovation and talent as it will require in the coming decade.