If you’re considering a career in finance, obtaining a master’s degree may not be your only option. You can also consider industry certifications, such as the Chartered Financial Analyst (CFA) and Financial Risk Manager (FRM), which are globally recognized qualifications that provide training in specialized areas like sustainable finance, financial planning, and alternative investments. While these certifications may be seen as alternatives to a master’s degree in finance, they can work well in conjunction with it. Adding an industry designation to your CV can help you pursue specific career paths and roles that require niche expertise, such as portfolio manager or climate-change analyst.
Margaret Franklin, the CEO and President of the CFA Institute, notes that industry certifications like CFA augment academics when it comes to job readiness. The CFA program, which is known for being the toughest exam in finance, is split into three levels and focuses on investment analysis, portfolio management, and wealth planning. Although the CFA curriculum overlaps somewhat with a master’s in finance, Franklin believes it offers different opportunities for learning, including a focus on emerging financial trends such as sustainable investing and fintech. The CFA curriculum is also being adapted to add practical skills modules and specialized pathways in private finance.
The pandemic led many young people to put off entering a difficult jobs market and remain in full-time education, resulting in a boost to MiF courses. The proportion of MiF programs reporting growth in overall applications reached 78% in 2020, up from 41% in 2019. However, the demand for industry certifications like the CFA and FRM is still significant, and obtaining them can be a much cheaper option than a MiF, which can cost tens of thousands.
Additionally, industry designations require continuous learning and keeping skills up to date in a changing environment. The ACCA has developed certificates in sustainability and data analytics for its 241,000 members and other professionals. David Simpson, the Masters in Finance Recruitment and Admissions Director at London Business School, sees no threat to demand. He believes that industry designations pair nicely with academic qualifications.
Different qualifications bring unique benefits at each stage of a career. The CFA gives a solid foundation in technical concepts, which is especially useful at the start of a career, while building leadership skills and a diverse network becomes increasingly important as candidates progress in their careers. A MiF provides greater breadth of study, especially relevant for a wider spectrum of jobs, including private equity and private debt.
Ultimately, finance professionals may need to mix and match qualifications based on their goals and evolving employer needs. The finance sector is changing rapidly, and professionals must constantly work to fill gaps in their knowledge. As William Kelly, Chief Executive of the Chartered Alternative Investment Analyst Association, notes, finance professionals who are complacent will be quickly marginalized. Therefore, it is essential to keep learning and developing skills to remain competitive in the field.
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