The field of Islamic banking and finance is flourishing throughout the world. The demand for qualified professionals in this sector has also increased at a rapid pace. This has led to a boom in institutes offering career oriented diplomas for those preparing for careers in this field. In this article we will discuss how you can get a career oriented diploma in Islamic banking and finance, as well as the pros and cons of getting one. Islamic banking and finance deals with all financial institutions that are based on Shariah principles (the Islamic Law). These institutions are supervised by the central bank of each country and have been set up to facilitate the financing needs of the Muslim population. There are multiple types of Islamic banks, such as specialized or commercial banks, savings banks, cooperatives, and so on.
Read on to learn more about what an Islamic banking and finance career entails, possible career paths after getting your degree, salary expectations after graduating from an institute of your choice, as well as any other relevant information you might need before making any decisions regarding your future career plans with the Islamic finance MSc.
What is an Islamic banking and finance career?
There is a huge difference between conventional bank and Islamic bank. Islamic banking and finance deals with all financial institutions that are based both on Shariah principles and the community need. These institutions are supervised by the central bank of each country and have been set up to facilitate the financing needs of the Muslim population. Shariah-compliant financial institutions have a distinct advantage over non-compliant ones, as they have a more secure foundation and are thus considered more reliable. As such, Islamic banking is gaining popularity as more people are seeking more secure and Muslim-friendly financial institutions. There are multiple types of Islamic banks, such as specialized or commercial banks, savings banks, cooperatives, and so on.
Factors that influence the salary in an Islamic bank
As the demand for Islamic banking and finance professionals is increasing, the salary expectations of such professionals are also gradually increasing. However, salary expectations in this sector are still low compared to other sectors such as banking, consulting, and auditing. Depending on the experience and qualification of the employee, the salary expectations in this sector are between $20,000 and $60,000 a year. The factors that influence the salary in an Islamic bank include the job location, the size of the organization, and the industry. For example, if you work in a large and well-established Islamic bank, you can expect a higher salary. This can be attributed to the fact that such banks have a large and loyal customer base, who will always be looking for financial services and products.
Cons of Becoming a Diploma Holder in Islamic Banking and Finance
There are a few disadvantages associated with a career in Islamic banking and finance. Since there is a lot of competition, you need to ensure that you get all the necessary qualifications, a good understanding of the industry, and experience. Due to the competitive nature of this industry, a lot of jobs are also advertised on online job portals and job portals of reputed institutes. Thus, you need to be extra careful while choosing your certificates in Islamic finance and make sure that they are offering good academic results. Apart from that, Islamic banking and finance is also a new field and there is a lack of professionals in this sector. As a result, you might have a hard time finding a job if you get out of this course without any experience. You can also expect low salaries in this sector.
Career Opportunities in Islamic Banking and Finance
Islamic banks are also known as sharia-compliant banks, and they are slowly gaining popularity among the general public as well. As the demand for these banks increases, there are more career opportunities in this sector. In fact, the global Islamic banking industry is expected to reach $5 trillion in 2020, which is about 30% of the global financial industry. The growth of the industry can be attributed to the increased demand for Shariah-compliant financial products and services in the Muslim society. Some of the career opportunities in this sector are discussed below: – Banking Officer: This is the most common position in an Islamic bank. This is a management-level position, and you will be managing the team and the overall operations of the bank. To become a banking officer in an Islamic bank, you will need to have a degree in Islamic banking and finance or any related field such as accounting, economics, finance, and business administration. – Islamic Finance Officer: This is a newly created position, and it was initially introduced in the UK in 2013. This position works in an office of a sharia-compliant bank, and you will be responsible for all financial products and services, apart from the asset management. You will be reporting to the chief executive officer (CEO) and managing the internal and external teams of the bank. – Broker: This is a specialised position in an Islamic bank, and it was introduced in the early days of Islamic banking. Nowadays, it is mostly done online.
Future Prospects for Islamic Banking and Finance Professionals
With more and more people seeking alternative financial options, the demand for Islamic banking and finance professionals is increasing. As per the report published by recruiters, there is a good demand for professionals in this field. This is mainly due to the fact that Muslims are always looking for more secure and efficient ways of financial transactions. The salaries in this sector are increasing, and most institutes offer a monthly salary between $2,000 and $4,000. There are also some institutes that provide housing or car loans to the employees. Apart from that, there are a lot of career opportunities in this sector, as it is still relatively new and is growing at a rapid pace. With more and more people looking for Islamic financial products and services, the sector is expected to grow even further.
Summing up
As the demand for Islamic banking and finance professionals is increasing, the salary expectations of such professionals are also gradually increasing. This can be attributed to the fact that Muslims are always looking for more secure and efficient ways of financial transactions. The salaries in this sector are increasing, and most institutes offer a monthly salary between $2,000 and $4,000. There are also some institutes that provide housing or car loans to the employees.
