Top Certifications for Bank Credit Analyst to Help You Succeed
Good news for those looking to embark on careers in finance - Singapore's financial sector continues to rise, growing at about 6% in the first half of 2021. The Monetary Authority of Singapore (MAS) expects the industry to create around 6,500 new jobs, in areas such as technology, wealth management, corporate banking, and insurance. As more digital banks open up, expect opportunities in banking roles, such as bank credit analyst, to increase. If you're a bank credit analyst looking for better opportunities, you might find yourself amidst a highly competitive field of applicants. To make yourself stand out, get a certification for bank credit analysts and give your CV a boost.
What is a bank credit analyst?
According to the Corporate Finance Institute, a bank credit analyst specialises in evaluating the creditworthiness of individuals, companies, or securities. They review borrowers' financial and credit records to assess if they can fulfil their financial obligations. They also look at the borrower's financial health and the economic conditions that can affect the borrower's repayment capabilities.
Bank credit analysts are important because they help banks and insurers determine when to offer (and how much) credit to those who apply for individual or business loans. In Singapore, the MAS asked local banks to prioritise lending and support businesses and individuals during the pandemic.
As a finance professional, Singapore's promising finance industry is the perfect training ground for you to enhance your skill set. Through various programs, the government of Singapore encourages financial institutions and fintech firms to retrain and upgrade their workforce.
In June 2021, the MAS and the Institute of Banking and Finance (IBF) announced that they will be extending enhanced training support measures for the financial sector. Interested individuals and organisations may apply for the government's schemes and allowance grants to fund further training.
Why get certified?
A bank credit analyst's career path requires proficiency in many finance-related skills, including accounting, financial modelling and quantitative analysis. Aspiring bank credit analysts are encouraged to have work experience in other related fields, such as credit application before they pursue an analyst position.
While certification for bank credit analysts is not a requirement, having one can be considered an advantage. Some employers may even prioritise hiring applicants with such certifications. Moreover, being certified adds another level of expertise to your skillset, and may encourage clients to trust in your professional advice more.
Top certifications for Bank Credit Analysts
Here are some notable certifications available to bank credit analysts:
Credit Risk Certification (CRC)
The CRC designation is offered to professionals with at least five years of experience in commercial credit and lending. Course materials cover seven areas of credit risk assessment, including assessing the financial condition of a business, the strength of its cash flows and the value and adequacy of collateral.
Professionals who want to take the CRC exam must have a strong background in financial accounting, financial statements, commercial credit and tax return analysis.
Interested professionals can take the course offered by the Risk Management Association (RMA). Upon completion of the course, they also become members of the RMA. In order to retain the CRC designation, individuals must complete 45 hours of additional courses every three years.
Credit Risk Analysis Professional Certificate
Offered by the New York Institute of Finance, this certification aims to help professionals gain a solid grounding in credit risk fundamentals, utilizing analytical tools to project future performance.
The course offers real-world company examples that simulate on the job experiences to help students assess what affects a firm's future performance. Its curriculum includes modules such as credit analysis fundamentals, cash flow analysis and forecasting.
Credit Business Associate (CBA) Certification
CBA is an academic-based designation, which signals mastery of three business credit-related disciplines: basic financial accounting, financial statement analysis and business credit principles.
In order to prepare for the CBA exam, professionals are encouraged to go through the Credit Administration Program (CAP) offered by the National Association of Credit Management. Each CAP course comprises at least 30 hours of class time.
Financial aid for continuing education in finance
Each certification comes with its own fees and rates. If you need some help with funding your education, several organisations in Singapore offer study awards, subsidies and grants that help finance professionals pursue continued learning. The MAS announced support of up to SGD 90 million to encourage financial institutions and individuals to make use of the pandemic downtime for training.
Here are some forms of financial aid available to you:
Financial Specialist Scholarship (FSS)
The FSS is a postgraduate scholarship programme that helps professionals develop leadership specialisations in a variety of fields in the financial services sector. The FSS will co-fund with Singapore-based financial institutions the cost of sending their eligible Singaporean employees to attend postgraduate study in certain areas of specialisation.
SkillsFuture Study Award for Financial Services (SFSA)
Administered by the IBF, the SFSA is offered to Singapore citizens with a minimum of three years' work experience in the financial sector. Awardees will receive a monetary award of SGD 5,000 to help defray out-of-pocket expenses associated with the courses they are taking. It can also be used on top of existing government course fee subsidies.
Financial Training Scheme (FTS)
The FTS provides funding for financial sector-specific training programmes. Enhanced support includes:
- Enhancement of course fee subsidies for FTS courses
- Training Allowance Grant for locals who participate in FTS courses
IBF Standards Training Scheme (IBF-STS)
The IBF-STS provides funding for training and assessment programmes accredited under the Skills Framework for Financial Services. Enhanced support includes:
- Enhancement of course fee subsidies for IBF-STS courses
- Training Allowance Grant for locals who participate in IBF-STS courses
Training Allowance Grant (TAG)
The TAG aims to encourage financial institutions and FinTech firms to make use of the downtime in business activity during COVID-19, to train and deepen the capabilities of their employees. It will offer an allowance of SGD 15/hr for employers that send their employees who are Singapore Citizens (SCs) or Permanent Residents (PRs) for training. For self-employed and unemployed individuals, allowance is valued at SGD 10/hr.
The TAG will also be available to support SCs and PRs outside of the financial services and FinTech sectors.
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