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Editorial<br />
Our Dear Readers,<br />
<strong>BANKING</strong> & FINANCE U.A.E<br />
Monthly Magazine Focusd On Banking & Finance - Issued By EIBFS - Sharjah UAE.<br />
Circulation & Distribution & Advertising - Banking Finance UAE - P.O.Box:4166 - Sharjah UAE.<br />
Tel: 00971- 573 4 322 -Fax: 00971 - 572 8 322<br />
The Magazin Shall Be Issued Monthly In ( 21,5 * 27,5 Cm ) Size With 100 Color Sheets Containing Unchange sections Including<br />
Banking & Finance Magazine is Guranteed Vehicle To Insert Your Advertisments Intended To The Target Clientele. Further.we Provide The Opportunities To<br />
Advertisers To Highlight Their Activites Operations And Productes Free Of Charge<br />
Annual Subscription: Students & Banks Staff 75 AED, Banks & Financial Companies, Ministries, Estabiishments, Government Departments 120 AED.<br />
All Cobyrights Reserved - EIBFS.<br />
Concurrently with<br />
the inauguration of<br />
the 19th National<br />
Career Exhibition in<br />
the Banking, Finance<br />
and Government<br />
sectors, we present to<br />
you this issue of UAE<br />
Banking and Finance<br />
Magazine.<br />
The National Career Exhibition in the Banking,<br />
Finance and Government sectors became an<br />
annual important landmark event amongst the<br />
employment endeavors for those sectors aiming<br />
at enhancing the Emiratization strategy. Due to<br />
the kind patronage and continuous support of<br />
H.H Sheikh Dr. Sultan Bin Mohammed Al Qassimi<br />
ruler of Sharjah, EIBFS has been successful in<br />
hosting this event every year.<br />
The increasing concern with Emiratization in<br />
the Banking and Finance sector, led the State to<br />
approve a new strategy for the banks based on a<br />
flexible approach of points system in calculating<br />
the Emiratization percentage, as decided by the<br />
UAE Central Bank and the Insurance Authority,<br />
for the Insurance Companies.
Likewise EIBFS has established a new strategy aiming at enhancing its position as a<br />
distinguished training provider for specialized banking and finance courses/programs.<br />
Training is placed at the fore front of its priorities together with supporting Emiratization<br />
efforts, upgrading the quality of its offerings at all levels, and broadening their base both<br />
vertically and horizontally to cater for all training needs.<br />
The year (2017) represents the starting point for the desired development in professional<br />
training, and specialized education, according to the road map specified in the strategy.<br />
We are working towards providing all the success factors through cooperation with our<br />
strategic partners in the banking and finance sector and all other sectors.<br />
I would like to avail this opportunity to thank all those who participated in making this<br />
exhibition a success and wishing prosperity to all involved. Hoping that this exhibition<br />
provides an appropriate platform for employment opportunities to all UAE nationals,<br />
qualifying them for work in the banking and finance sector and advancement in their<br />
career ladders. This Exhibition would also support and reinforce Emiratization efforts<br />
as per the government accelerator initiative, aiming to achieve the national vision for<br />
optimizing employment scopes for the UAE nationals.
Contents<br />
EIBFS NEWS<br />
<strong>BANKING</strong> & FINANCE U.A .E<br />
14 th Year Issue 88<br />
February 2017<br />
6-9<br />
INCEIF (International Center for Education in Islamic Finance)<br />
Chairman :<br />
H.E.Hussain Al Qemzi<br />
General Manager<br />
& Editor-in-chief<br />
JamalAhmadAl Jassmi<br />
Editor :<br />
D.rKhalid Zarouq<br />
Executive Secretary :<br />
HajarAl Nuaimi<br />
10-11<br />
!<br />
Noor Bank to hire fresh Emirati graduates<br />
! !<br />
12-19 20-27<br />
EIBFS library Development Report Addition<br />
of more Databases and Magazines<br />
Emirates Institute for Banking and Financial<br />
Studies Hosts Interactive Workshop on<br />
Retirement Planning<br />
4 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
Article<br />
ARTICLE<br />
THE GAINT LEAP AHEAD:<br />
NEW NATIONALIZATION STRATEGY IN<br />
<strong>BANKING</strong> & INSURANCE SECTORS<br />
NY Expands Jurisdictional<br />
Reach Over Foreign Banks Using<br />
Correspondent Accounts<br />
Dr Allen Baby<br />
Faculty- Emirates Institute for Banking &<br />
Financial Studies, Sharjah<br />
Article<br />
28-31<br />
Article<br />
32-33<br />
Article<br />
By Rachel B. Goodman, David A. Shargel<br />
and Adam J. Fine, Bracewell LLP<br />
The rise of women in the<br />
UAE financial sector<br />
28 February 2017 <strong>BANKING</strong> & FINANCE U.A.E<br />
32 February 2017 NY Expands Jurisdictional<br />
<strong>BANKING</strong> & FINANCE U.A.E<br />
‘Loyalty is the most Reach Over Foreign Banks Using<br />
fundamental value of Correspondent Accounts<br />
being an Emirati’<br />
Iman Al Tiniji<br />
Noura Abbas<br />
34-37 38-41<br />
42-48<br />
38 February 2017 <strong>BANKING</strong> & FINANCE U.A.E<br />
By Rachel B. Goodman, David A. Shargel<br />
and Adam J. Fine, Bracewell LLP<br />
34 February 2017 <strong>BANKING</strong> & FINANCE U.A.E<br />
32 February 2017 <strong>BANKING</strong> & FINANCE U.A.E<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 5
EIBFS NEWS<br />
INCEIF (International Center for<br />
Education in Islamic Finance)<br />
EIBFS team met with the Deputy President Academic<br />
Prof. Datuk Dr. Syed Othman Alhabshi and President,<br />
CEO Daud Vicary Abdullah on November 1st,<br />
at INCEIF premises in Kuala Lumpur Malaysia.<br />
Discussions revolved around re visiting the MOU and<br />
potential partnership agreement through their PCIF<br />
offerings.<br />
IBFIM (Islamic Banking & Finance Institute<br />
Malaysia)<br />
EIBFS team visited the IBFIM premises on 1st Nov.<br />
in their institute in KL. The team met with Mr. Badrul<br />
Hisham Abd Rahman, Head program development<br />
and partnership, M. Najib Shaharuddin, Chief<br />
learning Officer-H.O.D, Zanariah Zahari, Head<br />
Marketing & Business Development and Natejah<br />
Ahmad, Unit Manager.<br />
The IBFIM team presented a briefing on its suite of<br />
programs, its operating model and strategic framework.<br />
The team suggested that both parties revisit the MOU to<br />
re work the deliverables.<br />
6 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
EIBFS NEWS<br />
FAA (Finance Accreditation Agency)<br />
EIBFS team visited the FAA offices on 2nd<br />
November in Kuala Lumpur to recognize their<br />
efforts in accrediting the Islamic Banking Diploma<br />
program and to discuss future plans of more EIBFS<br />
program accreditations. The objective of the visit<br />
was also to discuss the upcoming FAA compliance<br />
visit to EIBFS, exploring the opportunity to obtain<br />
accreditation for our BSc program and to gain<br />
some insight into FAA’s collaboration with BAC<br />
(British Accreditation Council) and its implication<br />
on existing and upcoming accreditations.<br />
The team met with Mr. Prem Anand M Arjunan, Associate<br />
Director Accreditation, and Muhammad Zulhimi Bachok,<br />
Executive Compliance, Accreditation along with other<br />
team members.<br />
AICB (Asian Institute of Chartered<br />
Bankers)<br />
Mr. Jamal Al Jassmi and the team welcomed the<br />
new CEO of Asian Institute of Chartered Bankers<br />
(formerly known as IBBM) in Kuala Lumpur, Mr.<br />
Prasad Padmanaban. Also present in the meetings<br />
were Kristine Anne Williams, head of Marketing &<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 7
EIBFS NEWS<br />
Communications and Mrs. Chireen Head of Research<br />
from AICB.<br />
Discussions revolved around the new CEO’s next<br />
steps, the strategic vision of AICB going forward and<br />
the separation of their training function formation of<br />
Asian Banking School.<br />
ABS (Asian Banking School)<br />
EIBFS visited the Asian Banking School in Kuala Lumpur<br />
to discuss collaboration opportunities in future.<br />
The team met with Mr. Huw Flynn Hughes, Director<br />
of Program Development and Quality Assurance and<br />
Ahmad Fairuz bin Mohd Adzahan Head, Program<br />
Development Division. Discussions revolved around<br />
8 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
EIBFS NEWS<br />
ABS and AICB separation and what are the main<br />
responsibilities of ABS.<br />
FAA visit to EIBFS Sharjah Branch:<br />
Representatives of Finance Accreditation Agency<br />
from Malaysia, a leading quality assurance and<br />
accreditation body supported by Bank Negara<br />
Malaysia, visited EIBFS Sharjah campus on<br />
November 8th 2016, for a compliance visit. The<br />
objective of the compliance visit was to review the<br />
progress of the accredited Islamic Banking Diploma<br />
program to ensure conformance to FAA Programme<br />
Accreditation (FPA) guidelines, requirements and<br />
specific conditions. EIBFS has been associated with<br />
FAA since 2014 when FAA granted the accreditation<br />
for the Islamic Banking Diploma Program<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 9
EIBFS NEWS<br />
Noor Bank to hire fresh<br />
Emirati graduates<br />
Noor Bank, a leading Sharia compliant bank in the<br />
UAE, has signed an agreement with the Emirates<br />
Institute of Banking and Financial Studies, EIBFS,<br />
for the launch of its new Management Associate<br />
Programme, entitled ‘Imtiaz,’ meaning excellence, to<br />
hire talented Emirati graduates.<br />
Hind Al Attar, Head of Human Resources at Noor Bank<br />
and Noura Abbas Ahmed, Director of the Training<br />
Department at EIBFS, signed the agreement at a<br />
ceremony held at the Grand Hyatt Hotel in Dubai.<br />
Designed in collaboration with EIBFS, the programme<br />
is tailored specifically towards talented UAE nationals<br />
with the strategic objective of hiring fresh graduates<br />
and preparing them for leadership roles within the<br />
organisation.<br />
The programme will nurture leadership and management<br />
capabilities, as well as provide an understanding of<br />
concepts within the banking industry. It will also enable<br />
the graduates to acquire knowledge and required<br />
proficiency for a future career within banking.<br />
Under the programme, management associates will<br />
complete various training sessions for one-and-a-half<br />
months at EIBFS headquarters and will become Banking<br />
Operations Certified. Once completed, they will then be<br />
10 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
EIBFS NEWS<br />
trained and allocated to a specific role within the bank.<br />
Speaking about the initiative, Hussain Al Qemzi, CEO<br />
of Noor Bank, said, “Through the induction of ‘Imtiaz’,<br />
Noor Bank once again reiterates its commitment to<br />
supporting the development and mentorship of talented<br />
UAE nationals. Building human capital competencies is<br />
crucial to supporting the nation’s local talent and creating<br />
a culture that inspires innovation.<br />
Jamal Al Jassmi, General Manager of EIBFS, said,<br />
“EIBFS is proud to collaborate with Noor Bank on a<br />
progressive course, exclusively designed to prepare<br />
gifted UAE nationals for a role within the bank. The<br />
implementation of this programme will provide trainees<br />
with the necessary expertise as well a comprehensive<br />
understanding of interdepartmental bank functions and<br />
operations.”<br />
Since inception, Noor Bank has organised several<br />
internal and external workshops dedicated towards<br />
leadership development of Emirati talent. The bank has<br />
also participated in several career fairs as part of its goal<br />
to support the national workforce.<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 11
EIBFS NEWS<br />
EIBFS Library Development Report<br />
Addition of more Databases and<br />
Magazines:<br />
!<br />
! !<br />
EIBFS Library Professional Development<br />
Training program<br />
12 February 2017 <strong>BANKING</strong> & FINANCE U.A.E<br />
A series of library staff seminars were organized at the EIBFS Dubai Campus in order that library<br />
staff across campuses is updated about, and in line with, library operations, services, current and<br />
future developments and projects.
! !<br />
EIBFS NEWS<br />
EIBFS Library Professional Development<br />
Training program<br />
d topics on library organization and management, library online databases and<br />
cedures and policies, and orientation on a series of library awareness activities<br />
pril 2016 (classroom visits, library tours, marketing)<br />
A series of library staff seminars were organized at the EIBFS Dubai Campus in order that library<br />
staff across campuses is updated about, and in line with, library operations, services, current and<br />
future developments and projects.<br />
The seminars included topics on library organization and management, library online databases and<br />
resources, library procedures and policies, and orientation on a series of library awareness activities<br />
to be initiated from April 2016 (classroom visits, library tours, marketing)<br />
The seminars included topics on library organization and management, library online databases and<br />
resources, library procedures and policies, and orientation on a series of library awareness activities<br />
to be initiated from April 2016 (classroom visits, library tours, marketing)<br />
Four information sessions for EIBFS<br />
faculty members and trainers, on available<br />
Four information sessions for EIBFS<br />
EIBFS Library Online Databases took place<br />
faculty members and trainers, on available<br />
at the EIBFS, Dubai Campus<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 13
EIBFS NEWS<br />
eBrary and Proquest, Islamic Finance News (IFN), InfoTrac and Thomson Reuters<br />
Four information sessions for EIBFS<br />
and search for resources.<br />
faculty members and trainers, on available<br />
EIBFS Library Online Databases took place<br />
and search for resources.<br />
at members, the EIBFS, trainers, library Dubai staff and Campus bankers.<br />
The presentations addressed features of the databases and practical information on how<br />
eBrary and Proquest, Islamic Finance News (IFN), InfoTrac and Thomson Reuters Zawya.<br />
The presentations addressed features of the databases and practical information on how to access<br />
The sessions, which took place during February and March, 2016, were attended by fac<br />
The sessions, which took place during February and March, 2016, were attended by faculty<br />
Four information sessions<br />
members,<br />
for EIBFS<br />
trainers,<br />
faculty<br />
library<br />
members<br />
staff and<br />
and<br />
bankers.<br />
eBrary and Proquest, Islamic Finance trainers, News on (IFN), available InfoTrac EIBFS and Library Thomson Reuters Zawya.<br />
Online Databases took place at the EIBFS, Dubai Campus:<br />
eBrary and Proquest, The Islamic presentations Finance addressed News (IFN), features InfoTrac of the and databases Thomson and Reuters practical Zawya. information on how to access<br />
and search for resources.<br />
The presentations addressed features of the databases and practical information on how to access<br />
and search for resources. The sessions, which took place during February and March, 2016, were attended by faculty<br />
members, trainers, library staff and bankers.<br />
The sessions, which took place during February and March, 2016, were attended by faculty<br />
members, trainers, library staff and bankers.<br />
14 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
EIBFS Library Literacy Information<br />
EIBFS Sessions Library Literacy Information<br />
Sessions<br />
As part of our marketing effort for increasing awareness of the EIBFS Library development project,<br />
operations, services and resources, from April 2016, the EIBFS Library staff will commence a series<br />
As of 10-mins part of our Information marketing Literacy effort for Sessions increasing all awareness academic of and the training EIBFS classes Library development for students and project,<br />
operations, trainees respectively. services and resources, from April 2016, the EIBFS Library staff will commence a series<br />
of 10-mins Information Literacy Sessions in all academic and training classes for students and<br />
trainees respectively.<br />
EIBFS NEWS<br />
Emirates Institute for Banking and<br />
Emirates Financial Institute Studies Offers for Banking Banking and Sector<br />
Financial Free Access Studies to Library Offers Resources Banking Sector<br />
Free Access to Library Resources<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 15
EIBFS NEWS<br />
Initiative aligns with UAE’s Year of Reading directive and promotes reading and education as<br />
a tool to deepen knowledge and skills in the banking and finance sector<br />
With recent updates to its library function, the Emirates Institute for Banking and Financial Studies<br />
(EIBFS), a regional leader in banking and finance education and training, now offers members of the<br />
banking sector free access to the institute’s vast library services and resources. With a 5-user free<br />
membership service, banks can benefit from the institute’s broad collection of both print and online<br />
periodicals, magazines, books and databases.<br />
Aligned with His Highness Sheikh Khalifa Bin Zayed Al Nahyan’s, President of the UAE and Ruler of<br />
Abu Dhabi, 2016 Year of Reading directive, EIBFS has recently upgraded its library services,<br />
technologies and functions to promote reading and education as a tool for broadening intellect,<br />
knowledge, tolerance and cross sector communication.<br />
The institute’s newly implemented external library program enables banking institutions and their<br />
internal research departments to access EIBFS resources and research expertise, including library<br />
records, databases and industry reports among other services. EIBFS and collaborating banks will<br />
exchange knowledge, expertise and best practices to establish an extensive research library that will<br />
serve as the banking and financial sector’s main source of information.<br />
Commenting on the institute’s library initiatives, Jamal Al Jassmi, General Manager of EIBFS,<br />
said: “An advanced and smart library function is key to disseminating knowledge and industry<br />
expertise to students, educators, researchers and professionals across the UAE. Committed to the<br />
Year of Reading initiative, EIBFS will continue to compile and offer wide access to top notch banking<br />
and finance resources, including print and digital books, online databases and journals, industry<br />
reports, and research studies. In doing so, we hope to further develop human capital in the region<br />
and equip banking and financial professionals with the intellect and skills needed to keep pace with<br />
the latest trends and market demands.”<br />
EIBFS has consolidated its library services through a revamped Library Portal and a mobile<br />
application interface compatible with laptops, tablets, smartphones and desktops. Through this<br />
integrated portal and corresponding mobile application, bankers, professionals and students alike<br />
can seamlessly access a wide range of library services, databases, tutorials, online periodicals and<br />
e-Resources as well as directly communicate with librarians.<br />
Keen to establish the first Smart Library in the banking and financial sector, EIBFS will install various<br />
smart technologies, including advanced self-checkout counters and the Library Radio Frequency<br />
Identification (RFID) Management System, a tracking system that ensures secure and more efficient<br />
tracking of library materials. Further to this objective, the institute will upgrade its discovery tool<br />
system. With the Summons Service, a discovery tool that augments the research experience, EIBFS<br />
will offer access to the largest unified index in the industry with wide coverage of highly relevant and<br />
16 unbiased February results. 2017 <strong>BANKING</strong> & FINANCE U.A.E
the latest trends and market demands.”<br />
EIBFS has consolidated its library services through a revamped Library Portal and a mobile<br />
application interface compatible with laptops, tablets, smartphones and desktops. Through this<br />
integrated portal and corresponding mobile application, bankers, professionals and students alike<br />
can seamlessly access a wide range of library services, databases, tutorials, online periodicals and<br />
e-Resources as well as directly communicate with librarians.<br />
EIBFS NEWS<br />
Keen to establish the first Smart Library in the banking and financial sector, EIBFS will install various<br />
smart technologies, including advanced self-checkout counters and the Library Radio Frequency<br />
Identification (RFID) Management System, a tracking system that ensures secure and more efficient<br />
tracking of library materials. Further to this objective, the institute will upgrade its discovery tool<br />
system. With the Summons Service, a discovery tool that augments the research experience, EIBFS<br />
will offer access to the largest unified index in the industry with wide coverage of highly relevant and<br />
The EIBFS Library collection includes approximately 24,000 printed and 127,0<br />
unbiased results.<br />
covering a wide range of topics and subjects including: Accounting, Banking, F<br />
The EIBFS Library collection includes approximately 24,000 printed and 127,000 online books,<br />
covering a wide range of topics Management, and subjects including: Computer, Accounting, and References. Banking, Finance, Moreover, Economics, the EIBFS Library has a<br />
Management, Computer, and References. English and Moreover, Arabic publication the EIBFS Library titles along has a subscription with key database to core systems, includin<br />
English and Arabic publication Finance titles along News, with key Infotrac, database ProQuest systems, Banking including Information Ebrary, Islamic Service and Thomson<br />
Finance News, Infotrac, ProQuest addition Banking to these Information services, Service EIBFS and Thomson Library Reuters users have Zawya. access In to a variety of prin<br />
addition to these services, EIBFS Library users have access to a variety of printed and electronic<br />
periodicals and magazines related to banking and finance.<br />
periodicals and magazines related to banking and finance.<br />
Library Information Literacy sessions for<br />
Banks and Library members:<br />
RSD has scheduled the following Library PD/orientation Sessions on Library Services and<br />
Online Databases OPEN to Bankers, library members. These will all be held in each EIBFS<br />
campus as per schedule below<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 17
Library Information Literacy sessions for<br />
Banks and Library members:<br />
EIBFS NEWS<br />
RSD has scheduled the following Library PD/orientation Sessions on Library Services and<br />
Online Databases OPEN to Bankers, library members. These will all be held in each EIBFS<br />
campus as per schedule below<br />
!<br />
!<br />
!<br />
!<br />
18 February 2017 <strong>BANKING</strong> & FINANCE U.A.E<br />
!<br />
Improvement of the library website/app:
EIBFS NEWS<br />
!<br />
!<br />
Improvement of the library website/app:<br />
Marketing of library services<br />
!<br />
During the development phase the library marketing material was<br />
created as part of the various proposed and library material<br />
promoted through below channels:<br />
EIBFS WEBSITE<br />
EIBFS SOCIAL MEDIA<br />
TRAINING CLASSES VISITS<br />
BANK VISITS<br />
EIBFS EVENTS<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 19
EIBFS NEWS<br />
Emirates Institute for Banking and Financial<br />
Studies Hosts Interactive Workshop on<br />
Retirement Planning<br />
Emirates Institute for Banking and Financial<br />
Studies (EIBFS), a regional leader in banking and<br />
finance education and training, hosted an engaging<br />
workshop last week, dedicated to retirement planning<br />
and pensions. Drawing an audience of more than<br />
60 members from leading banks in the UAE, at the<br />
institute’s campus in Dubai, the event discussed<br />
the significance of retirement planning, and offered<br />
advice on how to benefit from funds in the private<br />
sector, from the ‘General Pension and Social Security<br />
Authority’.<br />
Experts Mohammed Saqer, Head of Customer<br />
Happiness Department, and Khalifa Alfalasi, Acting<br />
Director of Dubai Operation Center, from the General<br />
Pension and Social Security Authority department<br />
were on hand, to provide advice and answer various<br />
questions from industry participants. The attendees<br />
at the event comprised of UAE National employees,<br />
Human Resource Officers and several others<br />
nominated by leading financial institutions and banks<br />
within the region.<br />
Speaking about the event, Jamal Al Jassmi, General<br />
Manager of EIBFS, said: “At EIBFS, we strive to offer<br />
a broad platform that tackles important subjects and<br />
critical issues in the area of banking and finance, for<br />
the benefit of our stakeholders. We are pleased to<br />
collaborate to with the General Pension and Social<br />
Security Authority, as part of our continued dialogue<br />
with our valued industry partners. Retirement<br />
planning and pensions is one of the most significant<br />
topics today, especially for UAE Nationals. We<br />
strongly believe that all participants benefited from<br />
20 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
EIBFS NEWS<br />
the informative and highly interactive session.”<br />
During the two hour session, each attendee was<br />
presented with the benefits of saving early; such as<br />
securing wealth for future emergencies, investing<br />
for the next generation, and guaranteeing a similar<br />
lifestyle after retirement. Participants were also offered<br />
advice on effectively managing optimal investments of<br />
financial resources. Other topics also covered during<br />
the session, included the definition of insurance<br />
benefits contained in the law, the services provided<br />
by the law for employers, insured and pensioners,<br />
as well as, the definition of insurance benefits and<br />
pension entitlement. The highly interactive session<br />
closed after several questions were fielded from the<br />
audience.<br />
Aligned with the UAE government’s objective to boost<br />
the professional capacities of Emirati citizens, EIBFS<br />
recently announced that it received 5,366 UAE<br />
national participants for the 8 months ended<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 21
EIBFS NEWS<br />
Careers Festival Day at EIBFS draws<br />
hundreds of UAE nationals<br />
The Careers Festival saw the participation of 80 financial companies<br />
that included banks, insurance companies and money exchanges,<br />
and led to one of the largest turnouts of UAE nationals at a job fair.<br />
22 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
EIBFS NEWS<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 23
EIBFS NEWS<br />
The Careers Festival saw the participation of 80 financial<br />
companies that included banks, insurance companies<br />
and money exchanges, and led to one of the largest<br />
turnouts of UAE nationals at a job fair.<br />
The Dubai campus of the Emirates Institute for Banking<br />
and Financial Studies (EIBFS), the chosen venue for<br />
the Careers Festival Day, drew an estimated 800 UAE<br />
nationals for various positions on offer by financial<br />
companies in the UAE. All UAE nationals who attended<br />
the two-day festival were successfully registered in<br />
the Ministry of Human Resources and Emiratization<br />
database.<br />
Organized by the Ministry and the recently launched<br />
Government Accelerators, EIBFS supported the<br />
festival as a strategic partner. The Careers Festival<br />
saw the participation of 80 financial companies that<br />
24 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
EIBFS NEWS<br />
included banks, insurance companies and money<br />
exchanges, and led to one of the largest turnouts of<br />
UAE nationals at a job fair. With hundreds of offers<br />
made at the Careers Festival, the deep commitment<br />
of the Government Accelerators and the Ministry<br />
along with EIBFS to hire 1,000 UAE nationals within<br />
75 days in the banking and financial sector, seem well<br />
on the way to being fully realized.<br />
His Highness Sheikh Mohammed bin Rashid Al<br />
Maktoum, Vice President and Prime Minister of the<br />
UAE and Ruler of Dubai, announced that Emiratization<br />
would be a key focus for Government Accelerators<br />
– a collaboration of public and private sectors and<br />
academia. The initiative, launched in November 2016,<br />
is the first of its kind in the world.<br />
Speaking about the impressive turnout of UAE nationals<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 25
EIBFS NEWS<br />
and companies at the Careers Festival, Jamal Al<br />
Jassmi, General Manager, EIBFS, said: “As part of one<br />
of the most important links in the collaboration, EIBFS,<br />
representing academia, is pleased to have hosted this<br />
significant event at our Dubai Campus in our role as a<br />
strategic partner. Today, the financial sector is the second<br />
largest contributor in the country, in creating jobs for<br />
UAE nationals. As the leading institute for banking and<br />
financial training in the region, we will continue to build<br />
and leverage partnerships in public and private sectors,<br />
to ensure the provision of qualified teams, capable of<br />
driving growth in the sector as a whole.”<br />
He added: “We also remain committed to offering the<br />
best training and rehabilitation programs in the banking<br />
and financial sector, in collaboration with our partners,<br />
including banks and insurance companies. Our goal is<br />
to help build a sustainable and resilient financial sector,<br />
which is capable of facing challenges that might arise on<br />
a global and regional level.”<br />
Speaking on his part, Ahmed Jassim Zaabi, Head of<br />
Government Accelerators Team, said: “The financial<br />
sector continues to grow and play a significant role in<br />
supporting the development process of UAE nationals.<br />
By gathering all participating organizations from the<br />
sector under one roof, we are confident that the Careers<br />
Festival Day is the right way to achieve our Emiratization<br />
and development of human capital targets.”<br />
He added: “Events such as this give citizens who<br />
want to work in this sector a chance. Each employee<br />
that has been successfully selected will have to attend<br />
a training program launched in cooperation with the<br />
Ministry of Human Resources and Emiratization, as<br />
well as the Emirates Institute for Banking and Financial<br />
Studies. Today the number of participating institutes in<br />
the Government Accelerator’s Emiratization objectives<br />
reaches more than 80 companies, spread over vital<br />
financial sectors such as banking, insurance and<br />
financial services integration.”<br />
Speaking at the event, Suhaila Al Jasmi, Head of<br />
Training and Skills Development, The National Bank of<br />
Ras Al-Khaimah, stated: “Supporting the government’s<br />
Emiratization initiative is very important for us, and we<br />
recently reached an Emiratization rate of 38%. The bank’s<br />
participation in this festival has helped us to employ 20<br />
talented nationals in various departments. However, we<br />
are dependent on training programs from institutions<br />
such as EIBFS, for our new employees, so that each<br />
employee can achieve the necessary expertise.”<br />
Kathim Jawad, Head of Human Resources at the leading<br />
money exchange and remittance house Al Fardan<br />
Group, said: “Our presence at the Careers Festival Day<br />
expresses our support for the directives of his Highness<br />
Sheikh Mohammed bin Rashid Al Maktoum, around the<br />
challenge of Emiratization, which was announced by His<br />
Highness at the launch of the Government Accelerators.<br />
Al Fardan Group recently reached an Emiratization<br />
rate of 11%, and we currently have supervisory and<br />
managerial positions that are open to anyone who is<br />
capable. Through our participation in the festival we<br />
have already hired 17 people and we are ready to hire<br />
more.”<br />
Juma Salem Al-Khatiri, Regional Director of Public<br />
Relations, Abu Dhabi National Takaful Company, said:<br />
“We are pleased to extend our support to projects and<br />
programs that support the government’s nationalization<br />
objectives in public and private companies. Our<br />
company’s Emiratization rate has reached 16%, and our<br />
management aspires to continue participating in similar<br />
events, to ensure that we continuously increase this<br />
percentage.”<br />
At the end of the event, Jamal Al Jassmi mentioned<br />
that EIBFS would collaborate with the Governmental<br />
Accelerators, to assess the extent of the event’s success<br />
in achieving its objectives after the event, and would<br />
prepare a report and submit it to supreme authorities to<br />
study and further develop similar future initiatives.<br />
26 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
EIBFS NEWS<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 27
Article<br />
THE GAINT LEAP AHEAD:<br />
NEW NATIONALIZATION STRATEGY IN<br />
<strong>BANKING</strong> & INSURANCE SECTORS<br />
Dr Allen Baby<br />
Faculty- Emirates Institute for Banking &<br />
Financial Studies, Sharjah<br />
The year that passed by, saw significant transformation in the economic landscape of the United Arab<br />
Emirates. The year was marked by various achievements in key economic sectors, which boosted the<br />
resilience of the economy at a time of challenging macro-economic headwinds. A key highlight of the year<br />
was the silent but immensely powerful movement in the Banking and Insurance sectors, in the form of<br />
the new nationalization strategy, which would change the trajectory of these sectors in the years ahead.<br />
The new Emiratization strategy in the Banking and Insurance sectors approved by the UAE Cabinet will<br />
come into effect from January 1st of 2017, marking the beginning of a significant journey ahead. The<br />
new system, referred to as the ‘point based system’, focusses on creating ‘quality jobs’ with long term<br />
sustainability as the focal point. The new system would not only create jobs for Emiratis, but also focuses on<br />
developing their core competencies and skillsets which would help them to scale up the corporate ladders.<br />
28 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
New Point System: A directional change<br />
The current quota system, especially in the Banking<br />
sector, has been largely successful in attracting<br />
Emirati talent to the industry. These institutions were<br />
mandated by the Government to have a percentage of<br />
the work force as Emiratis with the number increasing<br />
every year.<br />
Though it was heartening to see more Emiratis<br />
joining these sectors over the past few years,<br />
there were many key challenges in this regard.<br />
A key analysis was that the kind of jobs created<br />
was mostly non critical jobs with a high skewness<br />
in favour of the front end retail banking in the<br />
branches.<br />
The presence of Emiratis in key domains in the<br />
Banking and Insurance sectors like corporate<br />
banking, treasury, credit, investments, actuarial,<br />
underwriting etc has been extremely low.<br />
It is in this context that the Emiratization strategy<br />
is set for a transformational overhaul with key<br />
objectives of employment generation and talent<br />
development. The Banks and Insurance companies<br />
would be given a target point by their respective<br />
regulators based on their business parameters of<br />
operating income and gross premiums written. This<br />
ensures that the Emiratization targets are aligned<br />
to the business objectives and ensures fairness as<br />
larger institutions will have higher institutions and<br />
vice versa. This is a remarkable shift from the one<br />
size fits all approach under the current model.<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 29
Article<br />
Focus on Competencies and Knowledge<br />
transfer<br />
l A remarkable highlight of the new system is the<br />
focus it gives for the knowledge and competency<br />
development of Emirati talent to help them scale up<br />
their career objectives.<br />
This is envisaged through a key parameter called as<br />
‘input points’, where points are given on the basis of<br />
‘the investments made in training and development<br />
of Emirati talent’. This incentivizes Banks and<br />
Insurance companies to invest higher amounts in<br />
training and development of the Emirati talent so<br />
that they can have the chance of achieving up to<br />
20% their targets through this parameter. Thus the<br />
onus is on the Banks and Insurance companies to<br />
train and develop Emiratis talent to take up more<br />
key roles in these sectors.<br />
l Another way this system bats for the key objective<br />
of quality job creation, is by incentivizing Banks<br />
and Insurance companies to create jobs in ‘critical<br />
positions’ and in the higher organizational hierarchy.<br />
Institutions where Emiratis work in critical roles in key<br />
departments like corporate banking, treasury, credit,<br />
investments, actuarial, underwriting are rewarded<br />
with two points, thus helping them achieve their<br />
targets. This would foster the knowledge transfer and<br />
development of competencies of prospective Emirati<br />
talent pool in the future.<br />
l The system aims at empowering the Emirati talent<br />
in these industries to ‘think big’ and shoulder greater<br />
responsibilities. This is evident from the way another<br />
key parameter called as ‘hierarchy points’ are awarded<br />
to the Banks and Insurance companies. Emiratis<br />
in top management will get 5 points, while middle<br />
management gets 3 points and non-managerial<br />
roles get just 1 point. This means that a role in top<br />
management could be equal to five non managerial<br />
jobs. This will create greater opportunities for Emiratis<br />
to fine tune their skillsets and eventually take top<br />
leadership positions in these industries.<br />
Another key hallmark of the new Emiratization system<br />
is that it is ‘highly futuristic’ and forward looking. At<br />
a time when financial technology is resulting in rapid<br />
automation of banking jobs across the world, the<br />
new Emiratization system aims at developing the<br />
competencies of Emirati talent to ensure that their<br />
careers do not get stuck in non-core banking roles,<br />
which could become redundant in the future.<br />
As Banking across the world is quickly moving to the<br />
digital world and new lending methods like Peer to<br />
peer lending is making rapid strides, it reminds us<br />
of what Bill Gates said two decades back “Banking<br />
is necessary, but Banks are not”. Core banking<br />
domains would continue to remain in one form or<br />
other when traditional brick and mortar banking could<br />
eventually become history. It is clearly evident that the<br />
major move in respect to new Emiratization strategy<br />
has foreseen the massive futuristic changes going to<br />
happen in the UAE and global banking industry.<br />
Emirates Institute for Banking and Financial Studies<br />
(EIBFS) has worked hands in glove with the Ministry<br />
of Presidential Affairs, Central Bank and Insurance<br />
30 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
authority to ensure that the new system is set for<br />
a perfect launch in 2017. EIBFS has shared its<br />
knowledge and domain expertise in this area with the<br />
Banks and Insurance companies to ensure that they<br />
are fully prepared to implement the new model.<br />
Neil Armstrong, when he made the first step of human<br />
race on the moon, said “this is a small step for man<br />
but one giant leap for mankind”. To borrow these<br />
immortal words, the new Emiratization system will be<br />
marked in the cherished history of UAE Banking and<br />
Insurance industry, as a visionary move that created<br />
quality sustainable jobs which was augmented by<br />
knowledge transfer and development of competencies<br />
of Emirati talent.<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 31
Article<br />
NY Expands Jurisdictional<br />
Reach Over Foreign Banks Using<br />
Correspondent Accounts<br />
By Rachel B. Goodman, David A. Shargel<br />
and Adam J. Fine, Bracewell LLP<br />
32 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
The New York Court of Appeals recently gave a legup<br />
to plaintiffs seeking to hale foreign banks before<br />
New York state courts, clarifying that the use of a New<br />
York-based correspondent account could, under certain<br />
circumstances, suffice to provide personal jurisdiction,<br />
even where the foreign bank does not direct that funds<br />
be deposited into the New York account. On November<br />
22, 2016, the Court, in a 4–3 decision in Al Rushaid v.<br />
Pictet & Cie, determined that a New York court could<br />
exercise jurisdiction over a Saudi businessman’s suit<br />
against a Swiss bank that allegedly accepted transfers of<br />
laundered funds from its New York-based correspondent<br />
accounts. Although the Swiss bank lacked any physical<br />
presence in New York, and did not itself deposit funds<br />
in the New York accounts, the majority found that<br />
“repeatedly approv[ing] deposits and the movement of<br />
funds through [a New York] account for the benefit of<br />
its customer” constituted “transacting business in New<br />
York” within the meaning of CPLR § 302(a)(1).<br />
In the underlying action, Saudi businessman Rasheed<br />
Al Rushaid sued Swiss bank Pictet & Cie for aiding<br />
and abetting three employees of his oil business<br />
in obtaining bribes and kickbacks from third-party<br />
vendors. The vendors allegedly wired the illegal<br />
payments to Pictet’s correspondent accounts in New<br />
York, and the funds in turn were transferred to Pictet<br />
accounts in Switzerland that had been set up by a<br />
Pictet executive for the allegedly corrupt employees.<br />
Judge Jenny Rivera, writing for the majority,<br />
acknowledged that under the Court’s prior precedent,<br />
merely owning a New York correspondent account or<br />
“passively and unilaterally” receiving funds through<br />
such an account, would not give rise to personal<br />
jurisdiction over a bank or individual. On the other<br />
hand, “[r]epeated use of a correspondent account<br />
on behalf of a client” constitutes a course of dealing<br />
in New York giving rise to personal jurisdiction—<br />
whether the “use” of the account involved the<br />
foreign bank actively depositing money or simply<br />
“approv[ing] deposits and the movement of funds.”<br />
The majority found that Pictet “affirmatively act[ed]”<br />
by crediting the funds transferred first to the New York<br />
correspondent account and then to the employees’<br />
accounts in Switzerland, and that crediting these<br />
transactions was an “essential step in the moneylaundering<br />
scheme.” As a result, exercise of personal<br />
jurisdiction over Pictet was warranted under New York’s<br />
Long Arm statute and within the bounds of “traditional<br />
notions of fair play and substantial justice” under the due<br />
process clause of the United States Constitution.<br />
Notably, Judge Eugene F. Pigott authored a sharp<br />
dissent, arguing that “the majority risks upending<br />
over forty years of precedent that holds the mere<br />
maintenance of a New York correspondent account<br />
is insufficient to assert personal jurisdiction over a<br />
foreign bank.” Judge Michael Garcia’s concurrence,<br />
however, sought to temper the differences between<br />
the majority and dissent, pointing out that they in<br />
fact differed only on the factual question of whether<br />
Pictet’s conduct was “purposeful,” “affirmative,” or<br />
“deliberate.”<br />
Nevertheless, the Court’s decision makes it<br />
clear that foreign banks, despite having no other<br />
connection to New York, may be subject to the<br />
state’s long arm jurisdiction through the use of<br />
correspondent accounts.<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 33
Article<br />
The rise of women in the<br />
UAE financial sector<br />
Noura Abbas<br />
34 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
The GCC region has witnessed a substantial rise in<br />
the role of women in the banking and financial services<br />
sector. People I knew were surprised when I personally,<br />
as a health information management graduate, opted<br />
to pursue a career in business management. After<br />
joining Dubai International Financial Centre (DIFC) as<br />
a Quality Management Specialist, and then moving on<br />
to the position of Business Excellence Manager, I found<br />
myself drawn to the inner workings of the banking and<br />
financial services sphere.<br />
What appealed to me the most, were the plentiful<br />
opportunities open to women of all backgrounds, and<br />
the challenging roles that enabled sustained growth and<br />
prosperity. Moreover, as a UAE national, I felt a strong<br />
calling to serve my country and make a meaningful<br />
contribution to growing the talent pool in this sector –<br />
particularly for Emirati women.<br />
In my current role as director of training at the Emirates<br />
Institute for Banking and Financial Studies (EIBFS), it is<br />
rewarding to facilitate the growth of female trainees and<br />
employees within our sector. According to a recent study<br />
by Oxford Strategic Consulting, females are significantly<br />
more likely than males to want to work in the banking and<br />
financial services sector – a ratio of 29 per cent versus 11<br />
per cent. Closer analysis suggests that the employment<br />
preferences of women in the UAE coincide with what<br />
the sector has to offer, most notably the female-friendly<br />
organisational culture and acceptance of female cultural<br />
values that are prevalent in this sphere.<br />
In addition, women show a considerably higher tendency<br />
to opt for generous benefit packages (63 per cent versus<br />
51 per cent) and opportunities for fast promotion (17 per<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 35
Article<br />
cent versus nine per cent) than their male counterparts.<br />
Governments in the GCC region have amplified their<br />
efforts to address the existing challenges faced by<br />
female entrepreneurs and have introduced a range of<br />
empowerment measures across the political, business,<br />
and educational arenas. These include market regulator<br />
improvements, lower entry levels and exit barriers,<br />
increased representation in chambers of commerce, and<br />
a greater focus on female literacy. In the last decade, the<br />
female literacy rate in the GCC region has been on a par<br />
with or above most developing nations across the world:<br />
nearly 100 per cent among 15- to 24-year-olds and<br />
almost 90 per cent among 25- to 64-year-old women.<br />
From another viewpoint, improvement in social<br />
conditions, driven by changing demographics and<br />
patterns in gender diversity in the private sector, is a<br />
key factor motivating women to work. As a result, the<br />
GCC region has witnessed an increase in workforce<br />
participation of adult females over the age of 25 with<br />
a 6.8 per cent compound annual growth rate in the<br />
last decade.<br />
Women in society have taken extraordinary measures<br />
to address the issues of balance between family<br />
obligations and work commitments. The Dubai<br />
Women’s Establishment has launched a variety of<br />
successful initiatives aimed at creating an environment<br />
where women have the opportunity to build their<br />
careers without compromising on their role as mothers.<br />
The Central Bank of the UAE has served as a strong<br />
facilitator encouraging greater participation of UAE<br />
36 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
nationals in the banking sector by allocating quotas for<br />
Emirati employees across banks in the country. More<br />
recently, the bank has moved beyond the quota system<br />
to a point-based system that aims to enhance the quality<br />
of jobs available to Emirati nationals, in order to allow<br />
them to grow within their organisations.<br />
Banks across the country should accumulate a certain<br />
number of points based on the quality of positions given to<br />
UAE nationals – the higher the position, the more points<br />
the bank gets. Considering the UAE female population’s<br />
preference for challenging roles and job growth, the new<br />
system goes a long way towards attracting more women<br />
to the banking industry.<br />
Given its fundamental role in the country’s drive to create<br />
a sustainable economic future and diversify its economy<br />
away from oil, banking is a strategic sector for the UAE.<br />
While oil-exporting countries continue to encounter<br />
significant challenges due to falling oil prices and global<br />
economic instability, our government has set the pace for<br />
national economic growth through its various initiatives<br />
aimed to enhance employment in the UAE.<br />
With a wide variety of courses and training programmes<br />
on offer, EIBFS is ideally positioned to spearhead this<br />
effort. This year-to-date, the institute has delivered a total<br />
of 833 vocational training and educational programmes<br />
– more than half of which drew the participation of UAE<br />
nationals.<br />
We must keep in mind that the banking and financial<br />
services sector fluctuates under the influence of<br />
unforeseeable economic issues. As thought leaders<br />
of our nation, we should prepare employees to tackle<br />
any present and future challenges that our country may<br />
face. For this reason, EIBFS constantly develops and<br />
updates its training portfolio to meet industry demands,<br />
including the introduction of courses addressing the<br />
issue of corporate restructuring.<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 37
Article<br />
‘Loyalty is the most<br />
fundamental value of<br />
being an Emirati’<br />
Iman Al Tiniji<br />
38 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
As it globalizes, UAE will keep its marvelous traditions intact, said Eman Al Tenaiji,<br />
lecturer at Emirates Institute for Banking and Financial Studies.<br />
Even as a young girl, Eman Al Tenaiji was wanting to take up banking as a profession.<br />
“I am proud to have been born into an educated family that emphasizes on learning<br />
and self-development. I developed a deep interest and admiration for the banking<br />
sector, particularly under the influence of my father who works in the UAE Central<br />
Bank. I acquired a bachelor degree in business from UAE University.<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 39
Article<br />
My mother was also a significant influence on me, as<br />
I developed from her a love for learning and teaching<br />
through her career as a school teacher. Today, I am<br />
a lecturer at the Emirates Institute for Banking and<br />
Financial Studies (EIBFS) where I combine my passion<br />
for banking and teaching,” said Al Tenaiji.<br />
She considers her university years to be the best years<br />
of her life. After graduation, she got the master’s degree<br />
in finance from Zayed University.<br />
“One of the biggest challenges I endured was finding<br />
time to balance studying for my master’s degree while<br />
working at National Bank of Abu Dhabi. In my opinion,<br />
nowadays, women and men are equally recognized in<br />
all industries. Women have been proving themselves<br />
day by day by working alongside men towards the<br />
organisational goal. There are many examples of UAE<br />
women leaders who have proved that being a woman is<br />
not an obstacle to success,” said Al Tenaiji.<br />
The Emirati identity, she said, is founded on the UAE<br />
culture that has been “embedded in us for generations.<br />
I believe the Emirati identity has always been present.<br />
The UAE has a rich culture and a strong heritage with<br />
Emirati values embedded in all Emirati households”.<br />
“Emiratis have set milestones in a variety of sectors<br />
and are continuously looking for bigger and better<br />
opportunities for the UAE. I believe that female Emirati<br />
identity is not necessarily different; nowadays, women<br />
and men in UAE society are more or less equal. Following<br />
the union of the emirates in 1971, the Constitution<br />
granted equal rights for men and women.”<br />
And no matter how globalized the UAE becomes, it will<br />
continue to keep its traditions intact, which is a reflection<br />
of the love of Emiratis for their country, said Al Tenaiji.<br />
On the qualities that define Emiratis, she said, “I believe<br />
loyalty is the most fundamental value [of being an<br />
Emirati]. This country has given its citizens a plethora<br />
of opportunities and has done an impeccable job in<br />
developing economy and quality of life. Loyalty to our<br />
40 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
nation and leadership is extremely important to me, it is<br />
our job to give back to our nation by contributing to its<br />
success and by being upstanding citizens.”<br />
Personally, the values that drive her and make<br />
the difference to what she does are ambition and<br />
appreciation. “I am a very ambitious person and am<br />
always looking for ways to develop and grow. I always<br />
ensure I am appreciative to those who have helped me<br />
become the person I am today,” she added.<br />
Expressing her love for her country, Tenaiji said, “I<br />
am extremely proud of my country and its immaculate<br />
accomplishments in the past 50 years.”<br />
The most prominent milestone of the UAE, she said,<br />
has been the union of the seven emirates. “It was the<br />
foundation of our country and that occasion set the<br />
pace of our growth as a nation. Under the leadership<br />
of (late) Shaikh Zayed Bin Sultan Al Nahayan, the<br />
UAE grew into one of the most prosperous nations<br />
in the world. Through the unification, we became<br />
stronger together.”<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 41
Article<br />
Dynamics of<br />
Training in Financial<br />
Establishments<br />
Dr. Farzana Firdousi<br />
(Academic Co-ordinator)<br />
EIBFS – Sharjah Campus, UAE.<br />
42 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
Businesses surviving in a technologically evolving<br />
era face immense challenges in terms of the growing<br />
need to train and prepare their workforce to contend<br />
with competitors and rival establishments. Roles and<br />
functions to be performed by employees have changed<br />
considerably due to the dynamically changing work<br />
environment, imbued with innovations and hi-tech<br />
innovations .Traditional business models, devoid of<br />
technological edge will soon be obsolete. Organizations<br />
that fail to redesign their training practices often struggle<br />
with organizational growth and productivity issues, for<br />
which leading companies are abandoning traditional<br />
methods of training in favor of more effective practice<br />
often involving technology innovation that engage talent<br />
and improve performances.<br />
Training plays a vital role in employee development,<br />
growth of a business, increasing sales and profitability<br />
of financial establishments .When given a strategic role<br />
it can assert influence on the output and performance<br />
of employees at different levels. In view of the present<br />
business environment with exponential growth in<br />
technology, its impact on the economy and society at<br />
large, the need for training and development is even<br />
more distinct than ever.<br />
Transforming employee behavior and job performance,<br />
with a need to increase productivity can often be said to<br />
be the most important reasons for training and coaching<br />
employees at all levels. Training is essential not only to<br />
increase productivity but also to motivate and inspire<br />
workers by signifying the importance of their jobs and<br />
<strong>BANKING</strong> & FINANCE U.A.E February 2017 43
Article<br />
providing all the information they need to perform those<br />
jobs effectively. General benefits derived from employee<br />
training could be increased job satisfaction and morale,<br />
increased efficiencies in processes, resulting in financial<br />
gain, increased capacity to adopt new technologies and<br />
reduced employee turnover .Training that is appropriate<br />
to the needs of an organization can add great value to<br />
the organization and its image. The significance and<br />
value of training has long been recognized and therefore<br />
majority of the organizations invest a percentage of their<br />
profits in staff training and development. Most banks<br />
in the UAE invest towards training and development<br />
of their national workforce in order to improve their job<br />
performance and to further job opportunities.<br />
Buckley and Caple (1995) describe<br />
training as:<br />
A planed and systematic effort to modify or develop<br />
knowledge /skill/attitude through learning experience, to<br />
achieve effective performance in an activity or range of<br />
activities. Its purpose, in work situation, is to enable an<br />
individual to acquire abilities in order that he or she can<br />
perform adequately a given task or job.<br />
Without the right training, employees can be the<br />
organization’s biggest liability. Trained effectively,<br />
however, they can become the organizations biggest<br />
asset (Bartram and Gibson, 2000). Rosner (1999) adds<br />
another ingredient for success – support after training.<br />
He states, “The most effective programs train workers<br />
in new behaviors and then train managers to support<br />
employees as they apply learning daily (Rosner,1999,<br />
p.43). Support and endorsement from management can<br />
greatly enhance training results.<br />
There are a number of financial organizations that link<br />
training to their business strategies. Training functions<br />
are being judged with how well training objectives<br />
meet the strategic objectives of the organization. As<br />
every organization has different ways of linking training<br />
44 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
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to business strategies in some countries it may not<br />
constitute a central part of the business strategy.<br />
Coopers and Lybrand (1985) suggest:<br />
few employers think training sufficiently central to<br />
their businesses for it to be a main component in their<br />
corporate strategy the great majority did not see it as<br />
an issue of importance..Training was rarely seen as<br />
investment but as an overhead which would be cut when<br />
profits are under pressure forced on the company as a<br />
reaction to other developments.<br />
Most businesses have a clearly defined strategy and set<br />
of objectives that direct and drive all the choices made<br />
for training decisions and organizational development.<br />
Organizations that plan their training process are more<br />
successful than those who have weak or unstructured<br />
plans. Most business owners want to succeed and<br />
optimize profits, but do not engage in training policies<br />
that promise to improve their chances of success.<br />
A well-conceived training program can help business<br />
flourish. A program structured with the company’s<br />
strategy, mission and objectives in mind has a high<br />
probability of improving productivity and other goals<br />
that are set in the training mission. Traditional models of<br />
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Article<br />
training are unable to bridge the gap between employer<br />
expectations and employee output or to improve levels<br />
of engagement and performance of employees. By<br />
aligning training strategies with organizational objectives<br />
and leveraging innovative technology to the maximum<br />
extent, organizations will be able to significantly improve<br />
their employee performance.<br />
The purpose of formulating a training strategy is to answer<br />
two relatively simple but vitally important questions like<br />
what is our business. And what should our business<br />
be? Armed with the answers to these questions and a<br />
clear vision of its mission, strategy and objectives, an<br />
organization can identify its training needs. The answer<br />
to both these questions could be derived from short and<br />
long term company goals.<br />
Training will also give an employee a major competitive<br />
advantage. If an organization has a proficient,<br />
committed, well-led workforce, it can perform better than<br />
the competitor in terms of good customer service and<br />
good product delivery compared to an organization that<br />
has employees who don’t know what they are doing.<br />
Suitable staff development cannot be something that is<br />
undertaken every now and then, it is a vital and daily<br />
aspect of work, of personal and professional identity<br />
of an employee. Diverse training strategies should be<br />
implemented in different financial organizations to enrich<br />
professional development of their staff.<br />
Educational or training strategies that have an<br />
interactive or experiential component may be the most<br />
beneficial to financial organizations learning new or<br />
advanced direct service skills. These can be formal or<br />
informal relationships with skilled mentors who offer<br />
expert guidance and encouragement pertaining to<br />
the knowledge and skills that they need to maximize<br />
46 February 2017 <strong>BANKING</strong> & FINANCE U.A.E
Article<br />
their potential. The objective is to offer guided work<br />
experiences, role modeling, and expert coaching so<br />
the introduction of essential knowledge and skills are<br />
mastered to desired levels of proficiency. An alternative<br />
way to accomplish this is to encourage job shadowing<br />
for new employees with experienced employment<br />
consultants within the same organization.<br />
Pre-service training or orientation programs are<br />
commonly used by organizations to support the learning<br />
needs of new employees as well as introduce them to<br />
their organization. The first step, is usually to involve<br />
each person in his / her plan as adults learn best when<br />
they can identify their own goals and objectives. Work<br />
orientation or induction programs can be offered to<br />
the employees either within the same organization or<br />
outsourced to Institutes or training providers. Bank<br />
employees can be given thorough meticulous knowledge<br />
of their banks products and services before they enter<br />
their main stream job positions in order that they gain<br />
expertise in their field of work. This is very beneficial<br />
to young and inexperienced graduates who have no<br />
previous banking experience. Organizations should<br />
device strategies and incorporate it in their business<br />
plan as an integral part of their HRD strategy in order to<br />
maximize output from employees from initial stages of<br />
work placement.<br />
As the business environment is constantly changing due<br />
to continuous developments in technology, the knowledge<br />
and skills required for employee and management<br />
development will also change from time to time. To<br />
compete with others, organization require to incorporate<br />
training strategies with their business development<br />
plans in order to achieve their desired goals. Training<br />
design and delivery can be made more effective through<br />
ensuring that the training program objectives are clearly<br />
focused on the organization’s priorities and goals.<br />
Besides this, participants’ learning outcomes must be<br />
stated in terms of productivity required in the workplace<br />
and measurable performance standards.<br />
Though training and development is one of the most<br />
important part of talent management, it is also one of the<br />
most dynamic area in terms of changing trends in training<br />
practices. With recent technological advancements and<br />
the precipitous adoption of social collaboration, training<br />
and development has changed significantly. Taking a<br />
decision to improve employee learning and investing in<br />
learning management practices is often an intimidating<br />
challenge for organizations. Training can no longer be an<br />
afterthought in organizations. It must become an integral<br />
function of staffing and business strategy. When it is not<br />
properly planned for, any endeavor to satisfy a training<br />
need will usually result in failure. Therefore, it is vital to<br />
create a written, well-thought out plan for training and<br />
development in order to increase profits and improve<br />
and develop employee performance at all levels.<br />
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48 February 2017 <strong>BANKING</strong> & FINANCE U.A.E