How to Develop a Successful Bank Credit Analyst Career Path
The finance scene in Singapore is on the rise, thanks to the fintech boom. In a world that’s becoming increasingly dependent on data, having an expert who can navigate through and evaluate all that information is crucial to any business, especially digital banking. A bank credit analyst can help take the company to greater heights, from recommending investments based on market behaviour to assessing risks.
Read on for everything you need to know about becoming–and making it as a bank analyst.
What does a bank credit analyst do?
Becoming a bank credit analyst can be one of the most rewarding career paths in the financial industry. After all, a bank analyst or financial analyst helps clients, companies, and organisations achieve economic success.
Although both career paths move within the large world of finance, there are differences between financial analysts and investment analysts. Financial analysts are largely responsible for identifying financial trends and creating projections.
Some of the responsibilities of a financial or bank credit analyst include:
- Evaluating the credit risk of a customer based on savings information, debt history, and purchase activities
- Analysing financial data of a potential client on credit terms
- Reviewing the credit limits of each prospective customer
Meanwhile, investment banking analysts help raise capital, trade stocks, stay up-to-date on market trends, complete mergers and acquisitions (M&A), and provide sound financial advice for their clients. They are tasked to study and evaluate potential investment opportunities for customers and assess whether these meet their financial goals. This career path suits those who work well under pressure and enjoy variety in their day-to-day schedule.
Salary Range
Perhaps unsurprisingly, being a bank credit analyst can be a lucrative career with several opportunities for advancing in your career. According to JobStreet’s 2020 Salary Report, entry-level employees in banking or financial services earn an average of S$3,552 each month, while those who work in corporate finance receive a monthly salary of S$3,729.
Junior executives earn a monthly salary of S$3,609 and S$3,745 in financial services and corporate finance, respectively. Upon promotion to senior executives, they receive a significant leap in their monthly pay, with analysts in financial services taking home S$5,003, while corporate financial analysts receive S$4,956.
Managers in financial services earn S$6,260 each month, while those in corporate finance receive a monthly salary of S$6,496. And finally, senior managers take home a monthly pay of S$10,268 for financial services and S$9,815 for corporate and merchant banking.
What is the career path of a bank credit analyst?
While working as a credit analyst offers a stable work environment with equitable pay, the skills and experiences you learn in bank credit analysis can help open the doors to other career paths in the larger world of finance. This can lead to other jobs such as underwriting in insurance, loan and trust management, investment banking, or portfolio management.
Junior Level (1-3 years experience)
Mid Level (4-8 years experience)
- Manager/Assistant Vice President – Credit Risk
- Senior Credit Analyst
- Senior Treasury and Credit Analyst
Senior level (8 years or more)
What requirements do you need to become a bank credit analyst?
Required skills
Industry knowledge
Knowledge of corporate finance topics such as equity research, private equity, and fixed income are a must, especially for analysts working in investment banking and want to shape a career in fund or portfolio management. You must be able to make business valuations and be knowledgeable in facilitating mergers and acquisitions.
Accounting
Possessing accounting knowledge is a basic requirement in this field.
Computing
Bank credit analysts will heavily rely on specialised computer software and computer programming to carry out their work. They must be familiar with programming languages that are useful for data analysis such as Python, C++, or VBA. Being knowledgeable with data visualisation software such as Tableau and Power BI is also a plus.
Financial modelling
Bank analysts are expected to be knowledgeable in building and understanding various financial models – some of these include M&A financial modelling, discounted cash flow, IPO, and three-statement modeling, among others. Financial models guide bank analysts in counselling clients or management executives in making decisions.
Quantitative Analysis
As the job primarily deals with crunching numbers that lead to important financial decisions, bank credit analysts must have advanced quantitative analysis skills. A high level of mathematical and statistical skills, in addition to strong data analysis capabilities are crucial.
Other skills
Risk analysis
While this should go without saying, bank analysts are expected to be financially literate, with the ability to spot and make sound financial and business decisions. They should be able to stay up-to-date oncurrent and significant financial events and foresee market trends.
Problem solving
A bank analyst must be able to answer everything from financial equations to the company’s debt issues. Moreover, an analyst’s ability to develop creative solutions to financial problems may help attract investors for the company.
Communication skills
Although some people believe numbers and words don’t mix, communication and interpersonal skills are crucial for bank analysts. Analysts must be able to articulate their investment strategies, be diplomatic in handling issues, and be ready to counsel clients over important financial matters.
Project management
As bank credit analysts will often work with multiple clients at a time, being able to multitask and efficiently manage different accounts will be essential. Analysts will have to perform various tasks efficiently, meet client goals and timelines, and be on top of their demands and requirements.
Educational background
Most companies may prefer graduates of finance-related degrees such as Business Administration, Economics, or Accounting and Finance.
Having post-graduate degrees or certifications such as an MBA or CFA is an obvious advantage in this competitive industry. It levels the playing field and provides you an edge in terms of competency and credibility.
If you are considering pursuing postgraduate studies to further your finance career, choose between an MBA or a CFA. An MBA, or Masters in Business Administration is a versatile degree that can be applied in other fields. Aside from the prestige attached to the acronym, acquiring an MBA may help you negotiate a higher salary.
Another helpful certification would be by becoming a Chartered Financial Analyst (CFA) – one of the highest levels of distinction in financial analysis that offers a globally recognised, graduate level qualification.
Aspirants will have to pass three exam levels covering accounting, economics, security analysis, money management, and ethics, along with having at least two years of experience in finance to become a Chartered Financial Analyst. With most CFA Programmes moved online, part-time and full-time study courses are offered over the course of 3 months to help you prepare for all levels.
How to write a bank credit analyst resume?
Download this Bank Credit Analyst resume HERE.
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